ProjectCorporate Impact Venturing
The base of the global economic pyramid (BoP) market presents a US$5 trillion opportunity. Corporations have a clear incentive to innovate in these BoP markets in developing countries but often struggle to establish successful models as a result of internal bureaucratic hurdles and lack of market insight. In the meantime, inclusive business models operating in BoP markets cannot scale effectively due to a lack of financing and business expertise.
A promising route to overcome both inclusive businesses and corporations’ challenges is a Corporate Impact Venturing strategy. By investing into local business, corporations can learn about low-income markets and relevant business models and tap into growth opportunities while hedging their risk of failure. On the other hand, local inclusive businesses get access to finance to grow their business and may receive access to useful management knowhow, complementary technologies, and new markets.
Endeva investigated this emerging field, with the purpose to explore how Corporate Impact Venturing is applied in practice, and what is needed to enable these productive partnerships. The resulting report thus aims to inform our dialogue with a growing community of professionals, corporate funds, and inclusive ventures engaged in this nascent field. We hope the findings will help shape the emerging space of Corporate Impact Venturing in low-income markets. Based on this report, Endeva also developed a practitioner workshop to discuss the emerging trend of corporate impact venturing and develop an action plan on how to drive the practice forward.
Endeva's research identified opportunities of Corporate Impact Venturing, both for the corporate and for the inclusive business. Both the different types of business models, and the life cycle for Corporate Impact Venturing have been analysed, as well as the building and enabling environment of these ventures.
The practitioner workshop, which was developed on the basis of the report, provided participants with a broad overview of the practices and dived into the details of the different corporate impact venturing models in parallel workshops. For a detailed summary, please click here.