#Cookstoves2015 @Cookstoves

Understanding the Landscape of

the Alliance’s Grant Funding

Abdul Lediju, Deutsche Bank

Emmy Wasirwa, Wana Energy Solutions

Dan Block, I-DEV

Jen Tweddell, Global Alliance for Clean Cookstoves

The Alliance has a suite of financing mechanisms

to develop and grow the clean cooking sector.

Spark Fund

Capacity Building

Facility

Catalytic Small

Grant Fund

Facility to scale up

Commercially Viable

Enterprises

Pilot Innovation Fund, Women’s Empowerment Fund

Working Capital

Fund

Capacity Building Facility

Capacity Building

InvestmentBusiness Scaling

Clean CookstoveAdoption!

“The CBF Recipe”

Partners with impact fund managers to increase investment

Funds capacity building to leverage investment capital

Works with partners to prioritize capacity building needs

Encourages the development and use of local service providers

Pilot Innovation Fund

CHALLENGE

• Innovations are needed across the

value chain but few funders take

risks on unproven concepts, and

investors are reluctant to fund R&D

SOLUTION

• The Pilot Innovation Fund (PIF)

provides grants of up to $150K to

finance game changing technology

and business model innovations.

• Grantees share lessons learned

with the sector.

Catalytic Small Grants (CSG)

CHALLENGE

• There is a need for country-specific mechanisms

that fund capacity building and growth of locally

owned and operated companies.

• These enterprises often find it difficult to improve

their operations and implement growth initiatives to

better position themselves for future investment.

SOLUTION

• The CSG program is a country-specific program

that funds capacity building and growth of locally

owned and operated companies.

• Enterprises receive grants of up to $100K to fund

catalytic enterprise development and growth

initiatives that will increase likelihood of investment,

as well as enrich the value chain through more

efficient production and enhanced distribution.

CSG Process

Idenitifcation of high potential

enterprises

Due diligence

Review PanelNegotiation

of Milestones

Post Grant Management and Capacity

Building

In-depth review of the business

model, management team,

technology, internal capacity,

financials, financial management

practices, gender mainstreaming

practices, etc. Process includes a site

visit

6-8 high potential enterprises identified

by the market manager in consultation

with HQ staff and local alliances.

Funding is released tranches and

companies have to hit milestones

tied to sales, building capacity and

improving social impact work

Management mirrors that of traditional

equity investment. Companies check in

regularly, Alliance hires consultants to

build capacity, companies submit

quarterly financials and basic social

and environmental impact data.

Spark Fund

CHALLENGE

• Few impact investors are willing to

provide money and technical assistance

to early stage enterprises with less than

$500,000 - $1 million in revenue.

SOLUTION

• The Spark Fund addresses this challenge

with “smart grants” to find capacity

development and growth.

• Spark grants of up to $500K target the

specific capital and capacity building

needs of venture and growth stages

enterprises.

Spark Investment Criteria

Enterprises are:

• Market-based, commercially viable models with proven acceptance and uptake of the product(s) in their target market.

• Venture- or Growth-stage enterprises generating sales but not yet mature enough to access growth capital from traditional investment sources.

• Scalable enterprises with the potential to make a significant contribution to the Alliance’s 100 million by 2020 goal.

• Not required to be profitable to apply, but all applicants should have a clear and feasible plan for achieving break-even profitability.

Spark Testing Results Reporting and Performance

Spark Process

Initial ApplicationDue

diligenceInvestment

PanelNegotiation

of Milestones

Post Grant Management and Capacity

Building

In-depth review of the business

model, management team,

technology, internal capacity,

financials, financial management

practices, gender mainstreaming

practices, etc. Process includes a

site visit

Businesses Submit their business plans,

testing results for technology, financials

(in a template), social impact summary,

management CVs, etc.

Funding is released tranches and

companies have to hit milestones

tied to sales, building capacity and

improving social impact work

Management mirrors that of traditional

equity investment. Companies check in

regularly, Alliance hires consultants to

build gender capacity, management

capacity is supported, companies

submit quarterly financials and basic

social and environmental impact data.

Typical Spark Fund Growth Initiatives

Internal capacity improvement such as financial management, management information systems, supply chain improvements, etc.

Building out of manufacturing capacity

Expansion to a new market

Marketing support

Consumer financing or other distribution partnerships for scale up

Research and development

Alliance grants are not intended to finance ongoing operations or

subsidize unsustainable business models.

Country India

Stage of

Development

Growth

Follow on

funding

$250,000 in debt

$2,670,000 series A

round recently closed

Greenway’s principal growth initiatives under the Spark Fund:

Establishment of fully owned manufacturing unit with capacity to manufacture 800,000 stoves annually.

Setting up of retail distribution network and hiring on new general manager to head partnership sales channel.

Launched new product; the Greenway Jumbo Stove.

Spark 2 Portfolio2.1 Million USD Portfolio split across 6 grantees

Spark Venture

Eco Fuel Africa - carbonized briquette company based in Uganda

Sustainable Green Fuel Enterprise -carbonized briquette company based in Cambodia

SimGas BV - biogas digester manufacturing and distribution company based in Netherlands and Tanzania

Spark Growth

Ecozoom - improved cookstove designer, marketer and distributor in Kenya

Greenway Appliances - improved cookstove designer, manufacturer and marketer in India

SME Funds - ethanol gel fuel manufacturer and distributor in Nigeria

Spark 2 Portfolio Results

Follow on investment $ 4,180,700

Follow on grants $ 2,942,494

New products developed 4

New products to market 2

Stoves distributed in 2014 871,184

Fuels distributed in 2014 6,153,613 kg

#Cookstoves2015 @Cookstoves

Understanding the Landscape of

the Alliance’s Grant Funding

Abdul Lediju, Deutsche Bank

Emmy Wasirwa, Wana Energy Solutions

Dan Block, I-DEV

Jen Tweddell, Global Alliance for Clean Cookstoves