Raising capital in emerging countries' ecosystems has always been a significant pain for entrepreneurs and startups. Formal ways of financing don't see entrepreneurs as an object of credit, therefore denying the access support and the networks of angel investors and VC are developing as the flow of ventures gets better with time. This set the context for the entrance of Fondo CONFIE which serves as financial support in a loan structure with paying incentives for early.
One of the core changes Fondo CONFIE brings to the ecosystem is the organization and better planification of startups and microenterprises because of the process they need to go through in order to access the funds. Also, the professionalization of organizations that support startups because the fund will support programs that help entrepreneurs access the fund itself.
Ministry of Industry, Commerce & MSMEs - public.
National Network of Entreprenurship - ngo
Fondo CONFIE Council - independent
In order for startups and microenterprises receive financial support from Fondo CONFIE entrepreneurs must:
- Demonstrate they posses10% of the requested funds. In order to evidence, they have skin in the game.
- Get the approval of a bank that would be willing to lend 20% of the requested funds on behalf of the representative of the startup.
- Present the development of a business plan in the official format of the fund.
If the applicant can demonstrate that the business at hand can be profitable that fund will concede a loan at a four year term where the first 18 month are free of payments.
Each time applications open ups entrepreneurs will have around 20 days to apply and will be able to receive the funds 15 days after the application has been closed.
Baseline with the business plan delivered by entrepreneurs.
The application has yet to be done, but the main challenge we expect to encounter is that entrepreneurs can complete all the steps without much friction, being the first time this fund goes public we will learn much of the user experience and adjust accordingly.
Jose M. Checo, Entrepreneurship Director MICM
Rubi R. Breton, Head of Innovative Business MICM
Alan Fernadez, Head of Mindset Development MICM
Patricia Acosta, Head of Entrepreneurial Ecosystem MICM