Audaces is a private community of accredited investors, focused on investing in social business opportunities worldwide.
To apply for access, please follow the registration process and make sure you meet our accreditation criteria.
HOW IT WORKS
The Audaces Club (the co-investment platform) allows you to invest in innovative social businesses alongside our venture capital fund. It enables you to cherry pick and invest online in the opportunities that suit your investment criteria, according to sector and geography preference or to your appetite for risk, returns and impact.
Audaces conducts its own due diligence, negotiates investment terms, and commits its own capital in each opportunity presented on the platform for you to tag along as an institutional investor. Unlike other equity crowdfunding platforms in the market, you have the comfort of knowing you are investing alongside a professional investment fund with your interests aligned all the way through to exit (the point where the investee company is sold and investors get their money back).
Once invested on the platform, you can track, manage and interact with your portfolio company from investment through to exit.
Investing for social good has never been so simple and compelling.
AUDACES’ INVESTMENT MODEL:
Dealflow Partners are impact funds, development finance institutions (“DFIs”) and other intermediaries vetted by Audaces that use the Club to promote their Club Deals to Club Investors. All investment opportunities presented by Dealflow Partners are subject to a degree of due diligence by Audaces before being promoted by the Club on the Platform.
Step 1: PIPELINE SCREENING
Audaces Impact Fund screens and manages its pipeline of deals according to the fund’s investment criteria.
Step 2: DUE DILIGENCE
Our team of investment professionals conducts an analysis of each shortlisted company. The process includes onsite visits, management meetings, and rigorous commercial, financial, legal and environmental and social due diligence. We engage with a wide range of advisors and industry experts to ensure a high-quality assessment and mitigate risks.
Step 3: NEGOTIATION OF INVESTMENT TERMS
We negotiate the terms of the investment with the entrepreneurs, and we decide how much capital our own venture fund will invest. All this is done under the guidance of our authoritative Investment Committee. The company valuation is negotiated by Audaces to a point where we are happy to invest our own capital. As a result, you will invest in deals with a realistic valuation rather than wishful valuations set by entrepreneurs alone.
Step 4: DEAL SYNDICATION
Audaces registered members can see all information regarding a live investment transaction and the terms with which our venture capital fund is investing. Members have an opportunity to engage with the company directly, ask questions from the entrepreneurs and read all the Q&A by other interested fellow investors in the Audaces community. All Audaces members make their own decisions to invest and can invest at the click of a button, on the same terms as the Audaces Impact Fund.
Step 5: FUNDS TRANSFER
As an Audaces co-investor, you do not have to worry about any complex legal or funds transfer risk regarding the investment. Only after Audaces Impact Fund I executes the transaction itself will the deal be made available for investment on the Platform. Therefore, you will be investing in a deal without any transaction execution risk.
Step 6: POST-INVESTMENT MONITORING
Once the company receives the investment, the exciting journey begins. Audaces keeps a social impact “heart-rate monitor” on all its portfolio companies, some of which you may have invested in as well. Login to Audaces to track and stay in control of your investments, both in terms of financial and impact performance.
Step 7: EXIT
Audaces has a hands-on approach and will assist all its portfolio companies to aim for an exit and a competitive return. All co-investors are expected to monetize their investments at the same time as the Audaces Impact Fund. As with every high-risk private venture capital investment, exit and returns are not guaranteed, but rather the result of market forces and the company’s attractiveness to potential acquirers or potential listings on the stock exchange.
Carried interest: 20% is payable to Audaces on any profit earned in exit from portfolio investments.
Admin Fee Reserve: 4% of invested capital per company for direct reimbursements of expenses over the lifetime of the investment.
Management Fees: 2% of invested capital per company for four years.
WHY AFRICA AND WHY NOW?
MORE DOLLARS FOR IMPACT: Africa is a popular target market for impact investors globally. This has led to an increasing demand for allocation in most impact investors’ portfolios.
MORE IMPACT FOR YOUR DOLLAR: Your investment will provide affordable basic services to millions, in a population which is growing from 1bn today to 2bn+ by 2050 (UN Population Division, 2017).
AN OPPORTUNITY FOR SUPERIOR RETURNS: Africa’s economy is expected to grow 4.3% p.a. from 2016 to 2020. E.g. A solar investment IRR is > 20% (vs. Europe 5-10%, LatAm10-20%).
INVESTMENT STRATEGY: Investing in technology-enabled businesses, which are contributing to the U.N. Sustainable Development Goals (SDGs) and with opportunities related to urbanisation in Sub-Saharan Africa.
THE AUDACES IMPACT FUND
Audaces Africa Impact Fund I (the “Fund”) is a €10 million venture fund, focusing on decentralised economic development and urbanisation opportunities in Sub-Saharan Africa (“SSA”). The Fund works in parallel with Audaces Impact Club, our innovative crowdfunding platform for impact investing.
Audaces invests in businesses that use technology to drive decentralised economic development across several sectors, and improve the livelihoods and productive activities of growing urban populations.
Our strategy aims to address the urbanisation and emerging consumer opportunity in SSA. With its current population set to double to 2 billion people by 2040, and its urban population projected to grow at 3.9% for the forthcoming years, Africa faces substantial social challenges, with urban centres hosting an increasing and poor population. At the same time, African urban areas offer the greatest potential impact returns on capital, because of its emerging middle class and increasing purchasing power. It is expected, by 2030, that Africa’s top 18 cities may reach a combined purchasing power of $ 1.3 trillion.
Audaces will invest in technology-driven scalable business models delivering decentralised economic development across a vast array of business sectors and activities. Unburdened by sunk costs in legacy infrastructure, SSA has skipped over entire technological development stages, and its institutions have proved to be over-centralized and inadequate to address the region’s needs. Therefore, Africa is now a greenfield opportunity for innovative private enterprises using technology to offer core infrastructure and services in a decentralised fashion, and enabling a leapfrogging prospect for industries such as fintech, cleantech, edtech, and consumer mobile.
Audaces will adopt a “Frontier Capital Movement” investment style, aimed at filling the gap between mainstream traditional venture capital focused on development capital and later-stage deals and philanthropic approaches targeting seed capital opportunities and start-up projects. We will focus on early-stage opportunities, offering financial, operational, strategic and business development support to rapidly scale-up operations and geographical footprint of our investees.
The Fund will target deals with a focus on the large cities of SSA, being the primary target countries Nigeria, Ethiopia and Angola.
SECTOR FOCUS AND VALUE CREATION THEMES
The Fund will pursue investments in fintech, cleantech, edtech, and consumer mobile/internet. For these sectors, we have identified six value creation themes, which are identified in the target prior to investing, and will help focus portfolio
operations on areas that matter for value creation:
Most of the 100-day plans for each investment will be known prior to committing.
WHY MEASURE IMPACT?
Audaces’ mission is to support pioneer social entrepreneurs tackling some of the world’s most pressing social and environmental challenges. We back innovative ventures that produce products or offer solutions in the education, healthcare, environment, finance and agriculture sectors, amongst others. Therefore the social or environmental impact generated by our Portfolio Companies must be intentional and measurable. Quantifying impact is one of the most important ways of determining the degree to which we have accomplished our purpose.
Audaces’ audacious impact objective is to positively impact the lives of 10 million people over the 10 year duration of the Fund’s life.
MEASURING IMPACT STRATEGY
We assess whether our investment target enterprise has the potential to solve or alleviate societal or environmental challenges. Does the company’s offering have the potential to improve access, affordability and suitability of products or services for their target underserved population? Do they have any beneficial impact on the environment? What is their contribution to the availability of quality jobs?
We develop a bespoke Enterprise Impact Program for each investee. Through this program we define and assess the direct impact of our investment, based on both short-term output indicators and long-term impact.
Enterprise Impact Program:
IMPACT MEASUREMENT TOOLS
Audaces considered multiple measurement models among various internationally recognised standards. The Global Impact Investing Rating System (“GIIRS”) was selected as the most suitable impact measurement system. Launched in 2011, GIIRS Ratings and Analytics are the gold standard for impact measurement in impact investing. They are rigorous, comprehensive, and comparable ratings of a company and a fund’s social and environmental impact. Today, 80+ funds are GIIRS rated, covering more than 700 companies in 50 countries and across 100 industries, representing $5.3 billion of committed capital.
The GIIRS fund rating is structured around three components – two related to the Fund’s portfolio companies (comprising 90% of the overall GIIRS fund rating) and one specific to the Fund itself (comprising 10% of the overall GIIRS fund rating):
The IBM and Operations Rating is measured by the B Impact Assessment, a cloud-based tool used by +40,000 businesses globally. This assessment gives a holistic measure – on a 200 point scale – of a company’s impact and is tailored to the company based on sector, geography and number of employees. It covers topics related to customers, community, workers, environment and governance.
Impact performance measurement, its consequent GIIRS rating and GIIIRS report will be carried out and made available to investors on an annual basis. Selected key impact performance indicators that are tracked more closely and frequently will be available on the Platform’s information dashboards.
Audaces will use B Labs’ tool B Analytics tool for every Portfolio Company. This cloud based software is designed to measure, report and improve Portfolio Companies’ impact. It has dashboard, charting and export functionalities for easy visualization and reporting. Benchmarking and customised improvement reports based on GIIRS will aid management in setting clear impact goals for improvement throughout the life of the investment.