Investment And Equity Management

Today, the countries with the greatest growth potential and most urgent need for investment face the greatest financing gaps and the highest costs of capital. Emerging and developing economies (#EMDEs) face borrowing costs 3–5x higher than advanced economies—even when they have faster growth, lower debt, and strong fundamentals. This high #CostOfCapital — not capital scarcity—is the biggest bottleneck for climate and SDG finance in EMDEs. 📄 Our new CCSI paper, co-authored with Jeffrey Sachs, Ana Maria Camelo Vega, and Bradford M. Willis unpacks the structural forces inflating EMDE financing costs—from flawed #creditratings, outdated prudential regulations, short-term debt, underused guarantees, and misperceptions of risk. The paper lays out 10 actionable pathways to mobilize long-term, affordable capital for climate and development—at speed and scale. 📌 Key Takeaways: - High cost of capital makes capital-intensive clean energy unaffordable where it’s most needed; fossil fuels remain cheaper in many EMDEs because of the high cost of capital despite abundant renewable energy potential. - GDP per capita—not solvency indicators—is the strongest predictor of sovereign credit ratings. Low-income countries are penalized for their poverty, regardless of investment quality or growth potential. Not a single low-income country is deemed credit-worthy by S&P, Moody's or Fitch. - It’s not just a development problem—it’s a missed investment opportunity. The distorted risk-return landscape also holds back large institutional investors who want to deploy capital into the high growth EMDEs—but are blocked by structural risk ratings, regulatory requirements, capital adequacy rules, and lack of de-risking mechanisms. - Today’s dominant credit and debt sustainability frameworks focus on short-term liquidity risks, not long-term structural growth potential. This leads to pro-cyclical investment patterns that funnel capital to already-rich countries and perpetuate underinvestment in high-potential regions. This is a solvable problem! And the solutions are timely and urgent—especially as leaders gather for the #IMF–WorldBank #SpringMeetings next week, the UN #FFD4 Summit in June, and #COP30 this fall. 📘 Read the full paper: https://lnkd.in/eJYAh6WN. We welcome your feedback and engagement. Columbia Climate School Mahmoud Mohieldin Vera Songwe Daniel Cash Ivan Oliveira Tom Beloe Ben Weisman Leslie Labruto Kate Hampton Daniel Firger Lucy Kessler David McNair Rahul Rekhi KEVIN CHIKA URAMA Avinash Persaud Columbia Center on Sustainable Investment Manfred Schepers

Most large-scale energy initiatives follow the same pattern: start with big commitments, roll out connections, figure out the policy later. Nigeria did the opposite. And that’s why it’s working. Instead of treating private investment as an afterthought, Nigeria built the policy framework first. And that made all the difference. What Nigeria Got Right - 1. A Structured Energy Compact – Nigeria created a clear, integrated policy that combines grid expansion, mini-grids, and decentralized solutions into a single plan. Other countries still treat off-grid power as an afterthought. 2. Private Sector Was Built Into the Model – Most African energy plans rely almost entirely on government spending. Nigeria understood that public money alone won’t be enough, so they de-risked the investment landscape for private players. 3. Policy Stability That Investors Can Trust – The biggest deterrent to energy investment is regulatory unpredictability. Nigeria structured clear rules around licensing, tariffs, and long-term market participation, giving businesses and investors the ability to plan long-term—not just react to political cycles. The Results Speak for Themselves - - Nigeria is now the leading mini-grid market in Africa. - Private capital is flowing into the energy sector at scale. - The policy model is structured for real expansion—not just short-term funding cycles. Now compare this to many other Mission 300 countries - - There’s no clear strategy to integrate decentralized and centralized power. - Investment risk is still too high for private capital to flow at scale. - The policy landscape remains too unstable for long-term planning. Nigeria isn’t perfect. But it’s one of the few places where energy policy is being built for growth, not just for the next round of funding. If Mission 300 countries want to make real progress, this is the playbook - - Stable, investment-friendly regulation - A clear plan that integrates all forms of power - Long-term market structures that attract capital at scale Energy access is an industry, not a one-time intervention. And Nigeria is proving that when the policy is right, the investment follows. #NigeriaEnergy #Mission300 #SmartInvestment #EnergyForGrowth

British Business Bank recently doubled its commitment to the Invest in Women Taskforce from £50m to £100m - and that alone is big news. But what I’m even happier to see is their newly announced £400m Investor Pathways Capital programme, launching in 2026. Why does this matter? Because this initiative focuses on building the pipeline of who gets to invest. For too long, venture capital has relied on closed networks and familiar faces. This programme will: • Deploy capital into small, early-stage funds • Help new investors build a track record • Back emerging talent, not just the usual suspects • Crucially, target at least 50% of investment towards female fund managers And we know what happens when women control capital: outcomes change. Capital flows differently. Diverse funders back diverse founders. For me, this is about changing the system from the inside out - making sure the next generation of investors reflects the future of the UK, not just its past. It’s a step towards the kind of inclusive, sustainable investment ecosystem we urgently need.

What happens when African fund managers lead the investment strategy? In a recent CNBC Africa interview, DOROTHY NYAMBI, CEO of MEDA (Mennonite Economic Development Associates) shared powerful insights into how the Mastercard Foundation Africa Growth Fund is reimagining what it means to put African capital in African hands. The Fund demonstrates that capital can be reimagined and redirected to serve African fund managers, entrepreneurs, and especially women, using a gender-lens and locally led investment model that: 1. Rethinks gender-lens investing • It’s not about ticking diversity boxes- it’s about empowering women with real agency to influence investment decisions and strategy. • The Fund emphasizes patience and local context, shaping investment approaches to suit real-world African realities rather than imposing external templates. 2. Builds local ecosystems • Local leadership matters. The Fund invests in and supports African and female-led managers, ensuring they are not just invited to the table- but leading it. • It enables fund managers to spearhead strategy and draw in other stakeholders, strengthening the investment ecosystem from within. 3. Focuses on returns “on inclusion” • The Fund measures more than financial returns. It prioritizes social impact, like job creation and economic empowerment. • The goal: dignified, sustainable employment, particularly for African youth, moving beyond short-term fixes. 4. Is intentional about youth and women inclusion • The Fund challenges outdated narratives that investing in women is riskier, instead proving the financial viability of women-led enterprises. • It applies a holistic, end-to-end gender lens, supporting women as entrepreneurs, fund managers, and drivers of growth across the value chain. Impact so far: • ~US$150 million deployed across 18 African-led investment vehicles • 49 SMEs supported in 12 countries • 2,500 full-time jobs created, with 1,100 held by women • 75% of supported vehicles are female-led • Honored with the DEI Award at AVCA’s 20th Anniversary Conference In essence, African-led, gender-smart capital flows are delivering equity and economic resilience. Fund managers and entrepreneurs are shaping outcomes with a clear focus on inclusion, impact, and sustainability. This is a transformative model where African and female-led fund managers are no longer just recipients of capital, but drivers of it, reshaping the investment landscape to deliver both financial returns and lasting, meaningful change across the continent. Watch the full interview: https://lnkd.in/d9SuiuSj #Africa #GenderLensInvesting #InclusiveCapital #ImpactInvesting #Leadership #YouthEmployment

The Women and Equalities Committee’s report cuts right to the heart of the issue – female entrepreneurs remain underfunded, despite the proven returns they deliver. It’s a powerful reminder of what’s still at stake, and how much untapped potential there is across the UK. Great to see the Invest in Women Taskforce recognised within the report. Our focus has been on changing the system within – increasing diversity on investment committees, increasing the number of female angel investors, and building the funding structures that enable female and mixed investors to back the next generation of founders. This is how change takes root, not through one intervention but through a shift in who holds the decision-making power. Real change will come when this way of working becomes embedded across the entire UK and becomes standard practice – this is how we truly unlock the £250 billion prize on the table. You can read the report here: https://lnkd.in/euUX9QVK Debbie Wosskow, OBE Alex Brewer

£9.5m raised against £20m of private company shares, non-recourse, no other assets pledged. The borrower is a UK entrepreneur funding a new venture while retaining his pre-IPO position. This is the kind of structure most lenders still won't touch. Securities-backed lending in the UK has matured around listed equities and a handful of late-stage fintech names with active secondary markets. Walk in with shares in a private company that isn't on every desk's watchlist, and the conversation gets harder very quickly. The default fallback is to ask the borrower to plug the gap with personal guarantees or the family home. In this case, none of that. Five-year facility, around 50 per cent LTV, structured to flex around an IPO expected within three years. The lender did the work on the underlying business rather than asking the client to bridge the risk himself. Founders are holding equity longer as listings get pushed back. Pre-exit liquidity is becoming a standard part of the toolkit, not a niche product. Worth knowing what's actually fundable before you assume your client is stuck. Full case study: https://lnkd.in/esSEufNt

From Dakar to Abidjan… A movement is underway, and it is being led by women who were once overlooked.   This week, on Episode #170 of the Unlocking Africa Podcast, I sat down with Stephanie S., Tech and Finance Business Leader, Gender Lens Investor, and Board Executive at the Women's Investment Club (WIC).   WIC is pioneering something powerful. It is the first investment fund in Senegal and Côte d’Ivoire dedicated exclusively to women-led businesses.   With a bold mission to catalyse inclusive economic growth, WIC Capital combines investment with mentorship, technical support, and community building to help women-led MSMEs scale sustainably.   And the results?   💡 $5M deployed 💡 10 women-led MSMEs backed 💡 8x revenue growth for portfolio companies 💡 400+ jobs created and maintained   One of my favourite insights from our conversation:   “Incorporating a gender lens is not about limiting your investment. It is about expanding it to include opportunities traditional models overlook.”   We discussed:   → Why WIC invested during COVID while others pulled out → How the WIC Academy is preparing women for capital and growth → What investment readiness looks like through a gender lens → How equity and quasi-equity are creating liquidity in the African context → The myth that gender lens investing sacrifices financial return   And this gem:   “The real opportunity lies in transforming women from economic observers to active participants.”   The future of gender lens investing in Francophone Africa? Stephanie says, “It is taking off.” If you are interested in impact investing, inclusive growth, and the future of African finance, this episode is for you.   ⬇️ Listen now by clicking the link in the comments below ⬇️   #GenderLensInvesting #FrancophoneAfrica #ImpactInvesting #WomenInBusiness #UnlockingAfrica #Podcast #PodcastHost

In 2024, the landscape of #venturecapital investment for #femalefounders has shown both progress and persistent challenges. Here's an overview: 📌 #Funding trends: Female-founded startups have continued to receive a disproportionately small share of venture capital. In the U.S., startups founded exclusively by women garnered only about 2.2% of the capital invested in venture-backed startups in the first half of the year. Meanwhile, #startups with at least one female co-founder slightly improved their share, representing 14.8% of total capital invested. This stark disparity highlights a #fundinggap that has not significantly narrowed over the years. 📌 Sector-specific insights: The femtech sector, which focuses on female health technology, has seen particular struggles. Female-founded #FemTech companies have historically raised less than their male counterparts, with 2024 continuing this trend. However, there's a silver lining with an increase in female investors and venture capitalists, which could influence more equitable funding in this sector. 📌 Investment success stories: Despite the broader funding challenges, some female-founded companies have managed significant rounds. For instance, companies led by female CEOs have raised substantial funding, showcasing that with the right combination of innovation, market fit, and investor interest, female-led ventures can secure significant investments. 📌 Challenges and biases: Female founders often face biases in the investment process. Reports indicate that 84% of female founders feel they encounter gender bias during evaluations, and they are asked significantly more questions about their ability to scale compared to male founders. Moreover, the average cheque size for female-led startups remains notably lower than for male-led ones. 📌 The bright side: There's an increasing awareness and action to address these disparities. Initiatives like the Investing in Women Code in the UK are making strides, with signatories accounting for a significant portion of VC deals in 2023, suggesting potential for positive change. Additionally, there’s a growing narrative that investing in female entrepreneurs can boost global GDP significantly, encouraging more investors to consider diversity in their portfolios. 📌 Conclusion: While 2024 has not seen a dramatic shift in venture capital distribution to female founders, there are signs of incremental improvement and a stronger push towards parity. However, the journey towards equal #investment opportunities for female founders is ongoing and requires sustained effort from both the entrepreneurial and investment communities. Some resources 👇🏽 https://lnkd.in/dX9y58Cd https://lnkd.in/dz2hq44h https://lnkd.in/dNkujwhB

Did you know that FanDuel, the daily fantasy sports company: - raised over $400 million in funding - generated more than $100 million in annual revenue at one point, - soared to a $1.2 billion valuation, and eventually - sold for around $558 million 𝐚𝐧𝐝 𝐲𝐞𝐭 𝐢𝐭𝐬 𝐟𝐨𝐮𝐧𝐝𝐞𝐫𝐬 𝐞𝐧𝐝𝐞𝐝 𝐮𝐩 𝐰𝐢𝐭𝐡 𝐧𝐨𝐭𝐡𝐢𝐧𝐠? WHY? Investor-friendly terms like liquidation preferences and drag-along rights prioritized late-stage investors, leaving little for common shareholders. 𝐇𝐨𝐰 𝐜𝐚𝐧 𝐟𝐨𝐮𝐧𝐝𝐞𝐫𝐬 𝐭𝐫𝐲 𝐭𝐨 𝐚𝐯𝐨𝐢𝐝 𝐭𝐡𝐢𝐬? 1. Negotiate Investor Protections Early: Don’t just focus on valuation—pay close attention to the terms, especially liquidation preferences and drag-along rights. A 1x non-participating liquidation preference is often considered founder-friendlier than multiple or participating preferences. If these investor protections are too aggressive, the founders risk losing their equity upside even if the company exits for a substantial amount. 2. Avoid Over-Raising at Inflated Valuations: While it’s tempting to accept large funding rounds that assign sky-high valuations, doing so sets a high bar for a future exit. If you don’t exceed that valuation at acquisition or IPO, you risk triggering investor-friendly clauses that leave you with little or nothing. Raise capital in alignment with achievable milestones, and resist valuations that create unrealistic expectations. 3. Choose Investors Who Align With Your Long-Term Goals: Not all capital is equal. Pick investors who share your vision and support sustainable growth rather than short-term financial engineering. Investors who prioritize fair terms and long-term partnerships are less likely to push for exits that benefit themselves first at your expense.

There are many funding options beyond raising equity capital (my career actually started in helping companies access non-dilutive funding). When I’m building the funding strategy for founders from scratch, we map out all their liquidity options (not just the obvious ones). Here’s what I’ve seen work for private companies at different stages: 1 - Periodic liquidity mechanisms. There are a few emerging platforms I’m excited about here, which are changing the game for private companies. They offer intermittent trading windows that let early investors and employees access liquidity without forcing an IPO or acquisition. This is massive for retention and cap table management. 2 - Revenue-based financing. For companies with strong recurring revenue, RBF provides capital without equity dilution. Repayments can also adjust to your sales topline, making cash flow management far less painful. 3 - Asset-based lending. If you’ve got inventory, receivables, or equipment on your balance sheet, you can unlock capital against those assets. I’ve seen a lot of founders use it for bridging funding rounds. 4 - Non-dilutive grants. Government programs (such as Innovate UK) and corporate innovation funds provide capital that doesn’t ask for any equity stake. Underutilised,and incredibly valuable for R&D-heavy businesses. Most popular at Pre Seed. 5 - Strategic debt/ venture debt. For companies that have already raised equity and need working capital without further dilution, venture debt can be a tactical bridge to the next milestone. Most often used at Series A & above. Mixing all of the above in addition to raising equity capital can build your solid funding journey from Pre Seed all the way to an IPO. #capitalraising #startupfunding #fundingoptions