Valens Opportunity Investment Company
Under the umbrella of Valens Bank, Valens Opportunity Investment Company Limited has been created to lend and or invest in a range of business projects across a variety of business sectors globally. The Directors believes that Financing early-stage companies will provide a higher return expectation than it would have been possible with more established companies. VOIC recognises the primary opportunity in tapping into the global appetite for its target industries.
Valens Emerging Markets
Valens Emerging Markets is a crucial entity of the VOIC. The fund aims to support sustainable development by seeking innovative solutions in difficult sectors and in circumstances that conventional investors may otherwise overlook or dismiss. More and more individuals recognise that financial returns and positive social impact can go hand in hand and VEM hopes to do just that; capitalising on the growth potential of emerging markets to create social change.
“Our fund structure allows us a huge amount of flexibility on ticket sizes and deal structure. We support the scalability of SMEs by offering an avenue for further rounds of investments”
According to the latest GIIN regional reports on the African continent, SMEs account for 90% of all business in the region. An increasing proportion of these SMEs are social enterprises with a core objective of generating positive social and environmental impact. SMEs however face tremendous obstacles to accessing finance.
4% of Valens Emerging Markets funds will be invested through Impetus Impact Investment.
Our goal at Impetus is to support SMEs who are trying to tackle problems in their communities by providing access to finance and business support they need to grow and prosper. Impetus recognises that access to finance in fragile countries is extremely limited. In 2018, only 17.1% of firms could access loans from banks in the least developed countries. This includes some countries where the rate is less than 1%. By contributing to increasing SME’s access to much-needed financial, physical and human capital in fragile areas, impetus aims to help generate sustainable long-term growth for the business and the local economy.
Measurement of market volatility and instability often diminishes investors appetite. However, the success of impact investors shows that investment opportunities are present in markets perceived as high risk. Rebuilding the private sector by empowering local entrepreneurs is an important component of the peacebuilding process, increasing stability, and economic empowerment. Further, many local businesses provide services and products that support the health, well-being and growth of their community. This includes businesses that help tackle issues in food security, health, education, shelter and water sanitation.
The relationship between Impetus and VEM offers a linear trajectory to the SMEs we work with and highlights our pledge to support evidence-based outcomes and guard the safety of our investments.