The fruitful collaboration between ALIVE Ventures and DGGF

Since 2018, DGGF – Financing local SMEs supports ALIVE Ventures to invest in high-potential SMEs in Latin America. Yet, ALIVE is not only investing in such SMEs, but is also highly engaged in fostering the entrepreneurial ecosystem in the region. Hence, time to look back on the successful collaboration between DGGF and ALIVE, and to zoom in on ALIVE's distinctive way of working.

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Raising two funds with support of the Dutch Good Growth Fund

ALIVE Ventures, established in 2016, is an investment firm dedicated to supporting early growth, mission-driven SMEs in Latin America. Through the Acumen Latin America Early Growth Fund (ALEG I), which receives investments from DGGF since 2018, ALIVE is committed to fostering gender equity by applying a gender lens to its investment portfolio. Furthermore, in its efforts to influence the broader ecosystem, ALIVE actively engages in collecting and disseminating impact data, conducting research, and setting standards for Gender Lens Investing. Additionally, ALIVE hosts webinars and workshops that leverage insights from their first Technical Assistance facility, which plays a pivotal role in achieving the fund's impact goals.

In 2023, ALIVE started raising its second fund, ALEG II. This fund has a target size of USD 80M and is an expansion of the strategy of the first fund, but with a new element built around climate. It aims to target impactful, inclusive, and early growth companies in Peru and Colombia. Furthermore, the fund will feature more tech enabled investments. DGGF, as largest investor of ALEG II, is now one of the anchor investors for ALEG II.

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Integrating customer feedback for enhanced accountability and performance

ALIVE believes that thorough impact measurement is crucial for aligning financial and impact objectives, enhancing accountability, informing decisions, and benefiting all stakeholders. Therefore, ALIVE's approach to measuring impact goes beyond just counting the number of lives affected. It conducts in-depth studies on portfolio companies at regular intervals and upon exit, to gain insights into customer demographics, the evolution of impact, and business performance. A key aspect of their methodology is incorporating customer feedback, which has proven to be beneficial for both impact outcomes and business success.

The custom metrics derived from customer feedback have not only deepened ALIVE's understanding of impact but have also led to improved business performance. This customer-centric approach has distinguished ALIVE in the investment community and has been instrumental in the success of their investee companies. The data from impact studies is essential for evaluating performance and guiding both investees and the fund towards better financial and impact results. It helps identify strengths and areas for improvement, ultimately contributing to the long-term success of impact investments.

Complementing ALEG II with a new Technical Assistance facility

In a significant move to bolster their climate strategy, ALIVE is also in the process of establishing a Technical Assistance Facility (TAF) for its ALEG II fund. This initiative is designed to enhance ALIVE's climate capacity and is receiving support from DGGF as well. DGGF's contribution will include business development support and assistance to facilitate the setup of the TAF.

The TAF’s primary role will be to engage external advisors who will provide ALIVE's portfolio companies with crucial post-investment support services. The overarching goal of this collaboration is to amplify the impact of the Fund’s investments. The targeted outcomes of the TAF include even better measuring and understanding the impact of investments, building internal climate capacity, increasing climate resilience across investee value chains, and bolstering climate related business services.