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What is a GiftVest and how is it used?
A GiftVest is a sum of money gifted or donated to 1to4 which is used to invest in social entrepreneurs presenting early stage, high impact, market based solutions to fight against extreme poverty.
We invest the GiftVest funds in equity, convertible debt or debt positions. In some cases, we also provide a degree of soft or semi-philanthropic capital to enable validation of pilot ideas before making a more traditional start-up investment. When debt is repaid or when the equity position is sold, ALL proceeds return to the fund pool to be reinvested.
REMINDER: 1to4 may be a non-profit, but we are entrepreneurs with a successful track record. 1to4 is a patient investor looking to make single low-digit returns in a reasonable timeframe in order to recycle funds and help as many ventures as possible.
Small Businesses represent a huge potential for any economy. They are key to sustainable job creation and to bring people into the formal economy. However, they are often in a funding void between microfinance and the formal banking sector.
Through our various programmes, we finance micro-loans as well as small business requirements which are great poverty alleviation tools. But we need to do more, much more. Supporting the right technologies and innovations at the right time can have a disproportionately favourable impact on the quality and volume of poverty reduction.