Over the past decade, the Dutch Good Growth Fund (DGGF) has played a catalytic role in backing primarily first-time SME finance providers across emerging and frontier markets through its fund of funds and seed capital investments, committing more than €400 million to SME risk capital across 55 countries.
This paper includes lessons learned from that experience, drawing on internal data, interviews and portfolio analyses to explore how SME finance providers move from concept to first investments, together with what enables them to build lasting models. It highlights four pathways identified by fund managers to get to first close - bootstrapping, seed-funding support, cornerstone investors and spinouts - and examines the factors that shape long-term success. The goal is to offer practical insights for local SME finance providers, their investors, and ecosystem enablers supporting the next generation of emerging market SME financiers.