About Farm Capital Services

FARM is a social impact fund/collaborative engaged in impact investing for blended value and venture philanthropy. We boost entrepreneurial, scalable organizations that expand access to critical products and services, primarily in India and Africa.

Vision: One day, the impact economy will steadily improve the lives of those who live on $4 a day or less.

Theory of Change: Entrepreneurial DNA can make a difference on the problems surrounding grinding poverty. In this frontier environment, a creative structure drives impact more effectively and more efficiently; funders and fundees "win".

We became a B Corporation in spirit many years ago. But stepping up to the formal process is a deeper commitment as this new sector of the economy emerges.

FARM is in the “find and feed S-curve” business. They are former Silicon Valley entrepreneurs that now invest (and then leverage) both financial and intellectual capital in firms poised for take-off. They are both philanthropists and impact investors.

The Change We Seek®

Perhaps the best way to explain the change we seek is to show it through examples of impact across our portfolio.

d. light design
Affordable off-grid lighting and power products
• Thesis: Ethnographic and user studies drive appropriate design. Design school and business school students from Stanford can collaborate to make affordable products for those at the bottom of the pyramid.
• For a typical farmer/shopkeeper, products pay for themselves in 6 months (replacing a 5-30% monthly income spend on kerosene). The lights facilitate longer and more effective study hours and improve the environment (every year, kerosene lamps emit 100 M tons of CO2 into atmosphere).
• http://www.youtube.com/user/dlightvideos?blend=7&ob=5#p/a/u/1/zeXsYYzylmc

GlobalGiving
Online marketplace for International Philanthropy
• Thesis: Bottom up vetted ideas that solve problems educate and trump top down government/technocrat ideas. Individuals want to support projects that deliver on the bottom up ideas (e.g. The Girl Effect ).
• GGF has raised $50+ million from 200k+ donors who have supported almost 5000 projects. The firm utilizes technology to provide “feedback loops” – continuous information flow rather than static evaluation - to help social entrepreneurs evolve.

New Profit Inc.
National venture philanthropy fund that seeks to harness America’s spirit of innovation and entrepreneurship
• Thesis: Multi-year financial and strategic support helps social entrepreneurs realize their vision. Ecosystem/environment building is needed as well.
• NPI has focused on two simple metrics: portfolio revenue growth, and lives touched. They have delivered 35% and 40% compound annual growth rate over 10 years on these two key metrics.

MicroVest
A commercially oriented capital mobilizing intermediary for microfinance institutions
• Thesis: Uncorrelated and attractive risk adjusted returns can be earned in the MFI space.
• Since ’03, MicroVest has provided financing to 50+ MFIs in 31 countries; 3M microfinance clients served by MFIs, 49% female borrowers, 84% of MFI loans for productive uses, 7% consumption, 2% housing, 6% other including education

Root Capital
Coop and SME financing plus advisory services
• Thesis: Small grassroots businesses are engines for sustainable development. But they are in the “missing middle” between microfinance and mainstream banking and need financing.
• Root Capital has provided $256M+ in credit to 320 small and growing businesses in 30 countries in Latin America and Africa. They have a 99% repayment rate from borrowers, and a 100% repayment rate to investors.
• http://www.youtube.com/user/rootcapital?blend=8&ob=5

Village Capital
Village bank style peer support and capital allocation process for social entrepreneurs
• Thesis: Efficient $ allocation and technical assistance delivery for social entrepreneurs can come from peers.
• 4 pilots have been run successfully, 150+ participants have raised $10 million in investment post-program, creating 300 jobs and serving 4,000 customers.

Farm Capital Services, LLC

• Industry: Equity Investor - Developed Markets
• Product/Services: Equity Investor
• Location: Boston, MA
• Ownership: Private
• http://www.farmcapitalservices.com