SVX Capital Raise Round Up — 2020 Update

A summary of SVX campaign activities as of December 15, 2020.

Despite the onset of COVID-19 in 2020, SVX issuers continued to raise capital and engage in business activities that directly address social, environmental, and community issues, many of which have been exacerbated this year. As well, alongside these leaders are impact investors and donors who have deployed millions of dollars into social purpose organizations to support the recovery effort. At SVX, we are honoured to work alongside individuals and organizations across the social innovation ecosystem as we collectively aim to build back better.

This year, we asked our issuers to share both their successes and capital raised, as well as their stories of resilience as they navigated an increasingly complex landscape. If you are interested in learning about SVX’s high-impact issuers and their momentum in 2020, continue reading our Capital Raise Round Up below.*

*Capital committed and raised figures include amounts raised on- and off-platform by SVX issuers as of December 15th, 2020. Amounts raised off platform have not necessarily been independently verified by SVX.

Currently Raising

Brighter Investment

Brighter Investment invests in the education of the brightest students in developing countries. Students earn a degree, investors seek a financial return.

  • Capital Committed and Raised: $445,082 USD
  • Closing Date: March 2021

Recent Milestones:

  • Vancity signed largest investment to-date.
  • Secured a partnership with Opportunity International to facilitate expansion to Uganda in 2021. The goal of this partnership is to enable Brighter Investment to support more students in other African countries and have a more diversified student portfolio.
  • Received a grant from the D. Keith MacDonald Foundation (DKM) to help double the average female enrolment rate in partner universities. This is an exciting opportunity for us because we get to contribute significantly to gender equality (SDG 5) in education in Africa which is an important focus area for us.

Resilience Story

Our working graduates proved to be a worthwhile investment despite the general uncertainty around the economic performance of the job market due to COVID-19. We recorded a 2.5x increase in repayments from our working graduates. Again, our salary research findings showed that starter salaries for the degree programs we support maintained their value in USD.

We have high hopes that the year 2021 will be even better for Brighter Investment and that we will get to share more exciting milestones with our investors.

Deetken Impact

Deetken Impact invests in emerging economies to generate long term returns while making a positive social and environmental impact in communities. Together with its affiliate, Deetken Impact Sustainable Energy, Deetken Impact manages over C $120M in impact assets, primarily in Latin America and the Caribbean.

  • Capital Committed and Raised: $5,410,000 in Impact Bonds; $10,060,000 in LP Units
  • Closing Date: Final Close expected in 2021.

Recent Milestones:

  • Deetken Impact raised $10,000,000 of senior debt financing for the Ilu Women’s Empowerment Fund from the United States International Development Finance Corporation (formerly OPIC).
  • Deetken Impact has raised the balance of the Ilu Fund’s capital from a diverse set of over 70 private sector investors including foundations, family offices, credit unions and individuals. Among our individual investors, over 40% are women.
  • The Ilu Fund has completed Gender Smart Scorecards for 13 portfolio companies and seven (7) pipeline companies.

Resilience Story:

Latin America is currently the epicentre of the COVID-19 global health pandemic, but Ilu Fund portfolio companies and their clients have shown impressive resilience in challenging circumstances. Of the Fund’s 17 current portfolio companies, one has required restructuring of the terms of its investment and the remainder have continued to perform as originally planned. Deetken Impact continues to closely monitor and support the Fund’s portfolio companies as the crisis evolves.

Marigold Capital

Marigold Capital funds a community of founders and companies that are overlooked and neglected within niche yet growing markets that operate efficiently with sustainability and growth in balance, all while tackling some of our biggest social challenges within the SDGs. They use critical social and gender equity approaches to our investment decisions and portfolio management, and fund entrepreneurial companies with flexible and holistic financing structures.

  • Capital Committed and Raised: We are at 25% raised overall and nearly 75% raised toward our end of February 2021 Second Close target.
  • Closing Date: September 2021

Recent Milestones:

  • We brought in Narinder Dhami as our newest Managing Partner and couldn’t be happier!
  • We held a First Close and made our first ever “virtual investment” into Goodee (we haven’t met the team in person).

Resilience Story

We were on track for a good First Close end of February 2020. Then COVID happened and we all paused to take stock. When we engaged with our potential and verbally committed investors, a lot had changed. We were no longer able to close as we planned despite the increased operational need for our capital from potential investees and the increasing social inequities brought to light. We also had team changes at Marigold which led to digging really deep to successfully move forward through the summer. Similar to everyone else, we not only had to keep the business afloat, but we also had to keep our families safe and sane, which of course brought about many unexpected events and conversations that helped identify our true priorities.

TAS LP3

TAS is a mixed-use real estate developer that engages, designs and invests with intent to build more inclusive, livable cities. They build vibrant projects that blend residential, commercial, cultural and community spaces to serve evolving needs for today and tomorrow.

  • Capital Committed and Raised: $80,000,000+
  • Closing Date: Targeted for end of Q1 2021

Recent Milestones:

  • Launched our third fund, raising significant capital despite the challenges of operating in the COVID environment.
  • Achieved above grade construction on our two active development sites.
  • Advanced municipal approvals and programming partner discussions at our portfolio of ten (10) development projects.

Resilience Story

Over the past several years, we had been investing in processes and infrastructure to support our organizational resilience no matter the environment. As a result, when COVID started to impact the way we work, communicate, and collaborate, we quickly pivoted. The transition online took effect immediately, safety procedures at our construction sites were quickly implemented while our corporate risk matrix allowed us to better monitor and track potential ‘hot spots’ in the early months. Culturally, we reinforced relationships and values through the implementation of weekly gatherings (“TAS Talks”), fun events (Trivia Tuesdays, TAS Class, Murder Mystery socials), and the onboarding of a Health and Wellness coach for the organization. This level of organizational resilience positioned us for significant expansion and growth of our people and portfolio by the latter half of the year and into 2021.

Closed Campaigns

InvestEco

  • Capital Committed and Raised: $100,000,000
  • Closing Date: June 2020
  • Investors: The Co-operators, Export Development Canada, Farm Credit Canada, BDC Capital, Fondaction, Fonds de solidarité FTQ, and Vancity

Disclaimer: This Medium post is for informational purposes only. It is not intended as investment advice, or an offer or solicitation for the purchase or sale of any financial instrument. SVX is registered as an Exempt Market Dealer (EMD) under applicable securities legislation in Ontario, Quebec, Alberta, British Columbia, Manitoba, and Saskatchewan; however, no securities regulatory authority has approved or expressed an opinion about the securities offered on this platform. Investing in the exempt market has significant risk. You should be aware of these risks, and as appropriate, consult with appropriate financial professionals to support your decision-making processes.

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