SpringHill employs the principles, discipline and accountability of commercial venture capital investing while screening opportunities for significant, measurable social benefit. SpringHill’s investment process is built on the management team’s deep experience of business strategy and venture capital investing, and extensive personal and professional relationships in Africa.
Venture impact investing is different from traditional private equity:
- Venture employs multiple rounds of small investments based on milestones to rapidly iterate a new business model.
- Proposition is tested with small initial funding to agreed milestones
- Larger capital sums are deployed aggressively, but only when the model is proven
- Measurably benefits millions of low-income consumers, in addition to creating jobs and expanding the local tax base
- Aligns social impact and financial returns, and so avoids compromising commercial decisions to maintain employment or other forms of impact
Our venture impact investing approach targets social impact first through the delivery of improved goods and services to BoP consumers where the scale of potential benefits is very large: