In Latin America alone there are over 80 million people living in extreme poverty. In Central America, 40.68% of the population lives below the poverty line. Small businesses in the region have very limited options to obtain financing. Banks are focused on larger businesses and if they agree to finance a small business, the loan is typically expensive and highly collateralized. There are few angel groups and equity investors investing in small businesses, particularly those with a strong social mission. Informal lending sources are prevalent and often take advantage of small businesses seeking capital. Investing in commercially-sustainable enterprises with sincere intent and exceptional ability to affect long-term positive change is a great way to support sustainable development. Impact investing provides a solution to social enterprises seeking capital in order to start or scale their businesses. Unlike traditional international development aid, impact investment allows investors and entrepreneurs to enter into a business relationship where both parties benefit. For the investor, they get a competitive return on their investment as well as the knowledge that their investment also helped to impact lives abroad. For the entrepreneur, they get the capital they need to not only grow their business but also get to impact lives in the communities where they provide their product or service. Pomona Impact serves as the link between those investors that are interested in creating social change through their investments and the entrepreneurs that want to provide a product or service that also drives a social or environmental change. Pomona Impact invests in early stage Social Enterprises in Central America as well as Mexico and Ecuador. In particular, we identify founders of for-profit businesses who are not only innovative but also have a passion and concern for creating social and or environmental change through their enterprise. We are not sector focused and are interested in any sector with an an enterprise that is ready for an investment of $30,000 to $250,000. We engage in value-added investing with our portfolio companies through strategic advisory, financial structuring, and introductions to potential partners.
