Sus­tain­able Devel­op­ment Goals (SDGs)

Solu­tion

The Pur­pose Pool mod­el aims to close the invest­ment gap for SMEs in under­served com­mu­ni­ties. We offer busi­ness devel­op­ment sup­port and cap­i­tal allo­cat­ed through a peer-to-peer selec­tion process and paid back on a rev­enue share. We pro­vide ear­ly-stage social entre­pre­neurs with 5.000 — 50,000 USD as an invest­ment. Entre­pre­neurs pay back a 5% month­ly rev­enue share until they reach a return of a 1.5–2.5x mul­ti­ple. Rev­enue share com­bines the advan­tages of equi­ty and debt by pro­vid­ing enter­pris­es with a flex­i­ble pay­back, return patience, and a pre-defined exit. Our revolv­ing fund rein­vests all pay­backs to allo­cate to new social enter­pris­es. This approach makes the fund self-sus­tain­ing and inde­pen­dent of ongo­ing exter­nal fund­ing.