In early 2020, Rising Academies, one of the fastest growing education companies in Africa, faced a dual crisis. The company was poised to expand into Ghana when an unexpected short-term delay from their primary equity sponsor threatened the deal. Soon after, Covid-19 lockdowns threw the entire education sector into chaos. To keep their impact — and business — on track, Rising Academies needed emergency funding — fast.
How Impact Investors Can Prepare for the Next Crisis
To react quickly later, set up the right systems now.
December 17, 2021
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Summary.
As investors struggled to respond to the Covid crisis in early 2020, countless impact-first companies had to wait six or more months for funds, because investors were using that precious time to set up emergency procedures, protocols, and criteria as the pandemic was happening. Because they were unprepared, many of the impact investors who recognized the need for emergency funding have stumbled in actually responding. Emergency financing requires different criteria, due diligence, and even investment theses, and setting up these systems take time. Here’s what impact investors need to do to respond differently to future crises.