Energy SME Financing: Challenges & Innovative Financing Instruments

Summary India has a good track record of funding Energy SMEs when they have reached a certain scale by way of equity India has challenges around early stage investing and debt financing

New Ventures India Started in 2006 Current Partner : Regain Paradise Research Consulting Facilitated USD 43 million in investments

Sectors and Supported Enterprises Energy Efficiency Renewable Energy Water TechRecycle Organic Farming Clean Tech Energy SMEs

Distribution of Portfolio Companies Energy SMEs

Portfolio Company : Funding Analysis USD in 22 companies 78% of the USD as equity New Chapter…

Investment Facilitation Angel Networks Social Enterprise Funds Cleantech Focused Venture Capitalists VC/Private Equity Banks Angel Networks Impact Investors More than 30 Investor network members across the investing spectrum

Deals in Green Entrepreneurship Project Developers Water & Waste Organic Farming Social Enterprises Technology Innovation Clearwater Peepul IFC (W) Helion IDG IDFCBessemer Barings Nexus Aavishkar IVF Acumen et al Aavishkaar Acumen GEF DFJ DFJ, BlueRun Deals across the board

Summarizing the Challenges Lack of really early stage funds Lack of focused incubators Lack of efficient debt instruments

Trends in early stage funds Sector agnostic early stage Social enterprise early stage investor /incubator The investment amount in early stage investing has increased by about 300% in the last one year (source : Venture Intelligence) Globa Social Venture Capital, Villgro….

Innovative Financing Instruments : Debt SIDBI and KfW lines: Cleaner Production and Energy Efficiency line – demand side Innovation Finance Line (late 2012) - supply side

Innovative Financing: Crowdfunding Achieved so far Won an (50%) ANDE grant to develop a crowd- funding platform for impact investments Goal Develop a product that can be deployed globally thru partners