#7 GKC | 💰 Explore Various Impact Funding In SEA

💡 GOOD Insights

Fundraising, a crucial topic for startup journey which many first-time founders struggle to navigate. Not to mention the additional complexitiy in the impact world.

Good Karma Club is here to demystify the impact fundraising world!

The answer is HELLA NOO!

Here are 2 ways to categorise different types of funding:

• Target Impact Return: Philanthropy, Impact First, Financial First

• Target Financial Return: Grants, Debts, Equity

Grants

Lowest expectation on financial return, highest expectation on impact return. Simply put, I give you the $$, make sure the impact is huge!

• Philanthropy Grants: no financial return expected; suitable for non-profits & for-profits, MVP-stage, research-stage

• Recoverable Grants: expect to recover the capital in certain period of time, but no interest required; suitable for for-profits, MVP-stage, early revenue stage

Examples: Echoing Green, YSEALI Seeds For The Future, The Global Good Fund

Debts

Medium-to-high expectation on financial return, Medium-to-high expectation on impact return. Debt is more suitable for companies with more stable (or clear predicted) cash flow.

• Concessionary Debt: 6-10% interest rate p.a.; suitable for non-profits & for-profits, early revenue stage or later

• Venture Debt: 15-20% interest rate p.a.; suitable for for-profits, growth stage

Examples: LendForGood, Genesis Alternatives Ventures

Equity

High expectation on financial return, high expectation on impact return. Exits on private market is difficult, especially in SEA. Hence, investors expect tremendous revenue growth, solid unit economics, and sufficient market size.

• Concessionary Equity: 7-10 yrs return period with 10% IRR; suitable for for-profits, early revenue stage or later

• Redeemable Equity (shares buyback in certain time frame): 3-5 yrs return period with 15-20% IRR; suitable for for-profits, early revenue stage or later

• Venture Capital: 5-7 yrs return period with 30-50% IRR; suitable for for-profits (with large market, tremendous revenue growth), early revenue stage or later

Examples: Silverstrand Capital, Wavemaker Impact, Patamar Capital

I hope this is helpful! :)

Feel free to reach out via LinkedIn or email if you have more questions.

Next week, we will share several real-life case studies of how impact startups raised from various impact funding. Stay tuned!

🎉 GOOD News

 💡Fundraise | MY Securities Comission Malaysia launched GROWMatch, an alternative financing platform for MSMEs

 💡Exit | SG Skuad, a global HR & payroll platform is acquired by Payoneer for $61M in cash

 💡Fundraise | MY Secai Marche raised a total of $3.4M Series A to provide a one-stop fulfillment service for F&B businesses

🏆 GOOD Opportunities

 🚀 Accelerator | BIND Startup Acceleration Program | Due Sep 2

 🚀 Competition | Future of Capitalism ($1M funding) | Due Sep 30

 🚀 Grant | Climate Change Innovation ($150k grant) | Due Sep 15

💁‍♀️💁‍♂️ GOOD People

🙋‍♀️ Akanksha Khurana | Portfolio manager @ Unreasonable

🙋‍♂️Tom Schumacher | Director of Investments @ Open Road Alliance

🙋‍♀️ Anita Kover | Director, Investments @ UBS Optimus Foundation

❤️ Amazing Content You’ll Like …

The $82.5M Mistake for Tani Hub - When shooting for the stars, naivety and mismanagement will ensure you crashing hard (link)

Indonesia’s Talent Shortage - Huge gap in tech talent demand (900k) vs. supply (50k) in Indonesia (link)

The story of JALA - A university project turned ID shrimp farming leader empowering 18,500 farmers (link)

👍 How I Can Help

Whenever you’re ready, here’s how I can be helpful:

1. Fellowships Database - a curated list of fellowship opportunities for SEA impact founders (stay tuned this Thursday)

2. Let’s Talk Impact - office hours for impact founders to talk about startups or personal if needed (4 × 30min sessions weekly)

3. Fractional Chief of Staff - Chief of Staff for fundraising / strategy / project management work (reach out via LinkedIn)

4. Sponsor Our Newsletter - work exclusively with impact brands / tools for impact founders (reach out via LinkedIn)

For daily insights, follow me on LinkedIn.