The Intellecap Impact Investment Network ('I3N'), India's first network of angel investors focused on investments with high social impact announced the signing of a new partnership agreement with global impact investor network Toniic.
I3N aims to facilitate investments in early stage enterprises that generate financial returns while demonstrating a social and/or environmental impact. Currently there are few avenues in India for pre-venture capital funding and capacity building for these enterprises. I3N is addressing this gap by creating a strong community of experienced angel investors that can invest in, and provide support to young entrepreneurs and enterprises in high impact sectors such as agriculture, healthcare, education, clean energy, financial inclusion, and rural businesses. I3N has over 20 members comprising high net worth individuals as well as institutional funds that will collaborate to co-invest in these social enterprises. To date, I3N has presented over 15 opportunities to its network members, and is currently facilitating its first set of investments.
I3N has entered into a partnership agreement with Toniic, a San Francisco based global impact investment network. Toniic is committed to expanding funding opportunities for highly impactful, small and growing businesses around the world. Toniic is further dedicated to increasing the velocity at which capital flows into global social enterprise and is eager to build strong partnerships that provide a rich pipeline of opportunities and foster co-investment with local investors. Toniic leads a global network of over 40 HNIs and institutional members seeking to place USD 100Mn in global social enterprises. To date, Toniic members have invested in 18 deals across India, Africa, Latin America and the US.
Impact investment today is increasingly being seen as an emerging asset class. In the past 7-8 years, India has witnessed over USD 140Mn* invested in social enterprises, and over USD 400Mn - USD 1000Bn of impact investment is expected worldwide in the next 10 years**. Social enterprises in emerging economies are today at the forefront of driving inclusive growth. These enterprises aim to provide high quality and innovative affordable goods and services to the underserved, thus creating social and environmental benefits while making an appropriate financial return. Impact investors such as those that comprise I3N and Toniic invest in social enterprises with equity and other forms of patient capital to help these young companies reach poor and low-income people and grow into sizeable enterprises with large scale societal impact.
Prachi Mathur, I3N lead at Intellecap stated: "Through this partnership, Toniic and I3N will work together to achieve their shared goal of catalyzing impact investments and double/triple bottom-line business. The networks will now regularly share information about potential investment opportunities and encourage their members to co-invest. We are very excited about working with Toniic to expand their footprint in India and about giving our enterprises exposure and access to the global capital that Toniic members offer. We also look forward to leveraging Toniic's experience and insights in successfully running an impact investment network."
Charly Kleissner, co-founder of Toniic and successful Silicon Valley entrepreneur said, "Having been an active impact investor in India over the past few years, I have recently witnessed a tremendous uptick in interest in impact investing - particularly from successful Indian entrepreneurs. Intellecap's Impact Investment Network is acting as a catalyst for this new wave of impact investors; Toniic members are looking forward to collaboration with I3N's members and to syndication of global capital into India."
*$140Mn impact investments in India by 2010 - quoted by Outlook Business
**Potential of impact investment industry in the next 10 years - quoted in the report Investing for Social and Environmental Impact by the Monitor Institute