November 2013: Penfield High School
Investors in SMEs
Social Venture Capital (SOVEC) is an investment fund set up by Dutch entrepreneurs to invest in small and medium-sized enterprises (SMEs) in Africa.
SOVEC Fund's main objective is to stimulate sustainable economic growth in Africa which, as we strongly believe, can best be realized through private sector development: i.e. investment in SMEs.
As a venture capital investor, we fill the gap between microfinance and bank finance. Venture Capital finance is based on long term, risk-sharing commitment from an investor and reduces SMEs' burden of high interest payments. This also improves SMEs' access to growth capital which is extremely limited in developing countries.
Besides providing capital, SOVEC supports local entrepreneurs by connecting our network of entrepreneurs to the local SMEs in a relationship we refer to as "E4E", meaning Entrepreneurs for Entrepreneurs.
The sheer availability of long-term capital with an appropriate structure provides significant competitive advantages to SMEs and a strong base for sustainable growth. SOVEC provides such growth capital to African entrepreneurs and continues to find many interesting investment opportunities.
In other words, we aim to achieve social goals through a business approach. Doing good, while pursuing financial returns. In this regard, "sustainable" also means that projects need to be economically viable, and generate sufficient financial return for all our stakeholders.