SANAD invests USD 5 million in Badia Impact Fund Squared
Contribution to USD 36m first close of MENA fund targeting early-stage technology SMEs in innovative sectors such as fintech for financial inclusion • Investment is first for SANAD’s newest equity sub-fund, which aims to generate income & employment
Luxembourg, November 17, 2020 – The second Equity Sub-Fund (ESF II) of the SANAD Fund for MSME has participated in the first close of a newly established fund for entrepreneurs in the Middle East and North Africa. With an investment of USD 5 million, the SANAD ESF II contributed to the USD 36 million first close of the Badia Impact Fund Squared, which targets early-stage, innovative small and medium enterprises (SMEs) in need of equity funding to scale up operations – particularly in socially impactful sectors such as financial inclusion, healthcare, education, and smart transportation.
The Badia Impact Fund Squared is managed by the Jordan-based company Silicon Badia. The experienced investment firm has established and managed four other SME funds, including in the Middle East and Africa. Its focus on bolstering the ability of SMEs to provide employment and income generation makes the Badia Impact Fund Squared an ideal first investment for the SANAD ESF II – a sub-fund launched in 2019 with the objective to fuel entrepreneurship and economic growth in the region by providing equity to institutions and enterprises with high social impact potential.
SANAD Board Chairperson Dr. Daniela Beckmann said: “We are proud to be a part of an endeavor that will channel funding to innovative enterprises which may otherwise lack access to the crucial financing they need to gain traction and expand. SANAD has been on the ground in MENA for nearly a decade, working to cultivate the success of entrepreneurs as key to the region’s economic stability and growth; and in Silicon Badia, we have found a partner whose experience and track record are an optimal match to jointly pursue this impact mission.”
Emile Cubeisy, Co-Founder and Managing Partner at Silicon Badia, added. “We are excited to have SANAD as a partner, as they bring team, capital, and technical assistance at a time when opportunity outmatches any challenge for today’s startups. With the accelerated pace of digitization shaping the future, now is the time to invest in, work alongside, and learn from our region’s smart, driven, and ambitious founders, and enable them to take the next great leap forward.”
Other confirmed investors into the Badia Impact Fund Squared include the European Bank for Reconstruction and Development (EBRD), the Dutch Good for Growth Fund, and the Innovative Startups and SMEs Fund, as well as private Jordanian companies which jointly believe in the vision of the new Badia Impact Fund Squared.
The SANAD Fund for MSME finances micro, small, and medium enterprises and low-income households in the Middle East and North Africa via qualified local lenders. SANAD thereby fosters economic development and job creation – including youth employment – agriculture, affordable housing, and innovations in finance and financial technologies. SANAD strives to meet these goals by providing debt and equity financing to its local partners. The SANAD Technical Assistance Facility multiplies the fund’s development impact and outreach through capacity-building with partner institutions, developing financial infrastructures according to the principles of responsible finance and conducting much required R&D.
An impact investment fund advised by Finance in Motion, SANAD’s investors include the KfW Development Bank, which initiated the fund; the German Federal Ministry for Economic Cooperation and Development (BMZ); the European Union; Switzerland’s State Secretariat for Economic Affairs (SECO); OeEB, the Development Bank of Austria; Germany’s GLS Bank and GLS Treuhand; the Dutch development bank FMO; and Calvert Impact Capital.
For more information on the SANAD Fund for MSME, please visit: www.sanad.lu
For more information on Finance in Motion, please visit: www.finance-in-motion.com
About Silicon Badia
Silicon Badia is a venture capital firm that partners with passionate, bold entrepreneurs to solve some of the world’s biggest problems. Headquartered in Amman and New York, we are comprised of a diverse team, each with a global outlook and a passion to invest in early and growth stage technology companies operating globally. Our mission is to balance returns with impact, deliver success stories that inspire, and partner with sector leading innovators.
The firm has over 15 years of venture investing experience in MENA, 10 years of venture investing in the U.S., and has supported over 160 tech founders spanning across sectors such as edtech, healthtech, ecommerce, agritech, consumer internet, urbanization, fintech, and digital media.
For more information, please visit: www.siliconbadia.com
Media contact – SANAD
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Media contact – Silicon Badia