Evaluation: Intellecap’s Investment Readiness Support to Ventures in East Africa

Intellecap, Shell Foundation, the USAID PACE Initiative and Argidius entered into a three-year partnership in 2015. The aim of the partnership was to support Intellecap to replicate its proven ecosystem-based approach in India for accelerating small and growing businesses (SGBs) in East Africa, by bringing together capital, advice, and networks to provide technical assistance and direct investment facilitation to high-growth social ventures. 40% of the ventures receiving investment support services were pre-revenue prior to particiapting, and the rest had revenues between $3,000 to $1,430,000. The average cost of support per enterprise was $15k. In 2017 an evaluation was commissioned to assess the results so far of Intellecap’s direct support to enterprises, and based on the findings provide a set of recommendations and lessons.

Key findings:

  1. By the end of 2017 (two years into the three year partnership), 42 enterprises had received between two to five days of investment readiness support. These enterprises had generated incremental revenue of $6million, and 350 full time jobs, however insufficient evidence was available to determine Intellecap’s contribution to this change.
  2. There is evidence of valuable contributions to pitching, presenting and financial models, materializing into investments totaling $1.15 million in five cases within Intellecap’s Impact Investment Network (I3N), (2 of them as grants)
  3. 18 further enterprises also mobilized finance outside of the I3N network taking the total to $15.5million, although there is a mixed picture of Intellecap’s contribution (reflecting the highly selective process and participants that had raised investment before)
  4. While services were aligned to support enterprises increase their access to investors and capital, the services offered were not sufficient to address many bottlenecks that enterprises faced that may affect their investability

Executive Summary
Full Report
Management Response