Opportunity for Innovative SME Finance Initiatives to Bridge the Missing Middle

18 November, 2015

The DGGF (Dutch Good Growth Fund) part 'Investment funds local SMEs', calls for applications regarding the 'Seed Capital and Business Development' (SCBD) facility. This is what Triple Jump, NpM member and one of the consortium members managing the specific DGGF part 'Investment funds local SMEs', announces in its newsletter

The Dutch Good Growth Fund (DGGF) Financing Local SMEs is a “fund of fund” investment initiative of the Dutch Ministry of Foreign Affairs that aims to improve financing for the “missing middle.” The “missing middle” consists of entrepreneurs that have outgrown microfinancing, but do not yet have access to regular financial services.

To support this aim, the DGGF has a 'Seed Capital and Business Development' (SCBD) facility that can support innovative early-stage finance initiatives reaching underserved SME markets with up to EUR 1 million. The purpose of the SCBD programme is to further the impact of the DGGF part 'Investment funds local SMEs'.

The SCBD facility is especially interested in supporting initiatives that have an innovative approach to combat one or more of the following – interrelated – fundamental challenges of SME finance:

  • High information asymmetry – the difficulty to get access to reliable performance data, track records, money multiples, etc.;
  • Lack of collateral – limited possibility to secured lending due to absence of registered collateral;
  • Transaction costs – high transaction costs due to small investment tickets; and
  • Limited deal flow/growth potential – limited deal flow and growth potential of entrepreneurs due to the lack of access to markets and talents.

Interested parties are invited to send their pitch-book.

For more information, including application and the selection process, click here.

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