<h1 style="text-align:center;">Announcing New Tool for African Business Owners</h1> News Release - May 21, 2010: Investor relationships often pose uncharted territory for African businesses, and RENEW is working at alleviating some of the uncertainty. <a href="https://renewcapital.com/sites/default/files/RENEW_Business_Guide_to_Investor_Relationships_1.pdf">RENEW's Business Guide to Investor Relationships</a> is now available as a tool for small- and medium-sized businesses seeking relationship with U.S.-based investors. The guide includes information about investor expectations at each stage of the investment process from pre-investment, initial contact, information gathering, verification and validation, site visit, due diligence, terms negotiation and growth.The guide is designed to help business owners avoid common pitfalls that preclude them from healthy business relationships with U.S. investors. The guide was first presented at RENEW's March 2010 workshops in Nairobi, Kigali and Kampala where several business owners commented that the guide provided invaluable information to help them navigate relationships with investors.

Investor relationships often pose uncharted territory for African businesses...

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Announcing New Tool for African Business Owners

<h1 style="text-align:center;">Are U.S. Investors and Companies Listening? Africa is a Good Buy.</h1> Several of the world's fastest growing markets are where? You guessed it: Africa. This factor along with a <a href="http://www.theglobeandmail.com/globe-investor/investment-ideas/african-opportunities-catch-investors-eyes/article1912111/">growing base of consumers with disposable income, improving infrastructure and a host of other factors</a> (like incredible natural resources)have made the continent tantalizing for several American giants like Walmart. But Walmart's move to acquire Massmart in South Africa is being met with some opposition according to a recent article in <a href="http://www.economist.com/node/18185732?story_id=18185732&amp;fsrc=rss">The Economist</a>. Only time will tell exactly what impact the retailer will have, but we can take one lesson: If Walmart thinks Africa is a good buy, perhaps the rest of us should listen.China is another player we should be listening to. Like it or not, they've had it figured out for a long time. A recent article on FT.com included the following facts and figures on Africa/China trade:<ol><li>1. 89 percent of exports from Africa to China in 2009 were oil, minerals and other raw materials.</li><li>2. The value of exports from Africa to China grew from $4.2bn in 2000 to $38bn in 2009.</li><li>3. Africa imports from China are about equal to exports and include footwear, furniture, lighting, textiles, electronic toys and pharmaceuticals.</li></ol>

Several of the world's fastest growing markets are where?

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Are U.S. Investors and Companies Listening? Africa is a Good Buy.

<h1 style="text-align:center;">Video Blog from the Citadel</h1> Here is a first hand report on the ICT SME space in Herat, Afghanistan.<figure class="media"><oembed url="https://youtu.be/9u2aC8abLig"></oembed></figure>

View a first hand report from Afghanistan.

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Video Blog from the Citadel

<h1 style="text-align:center;">No Guts. No Glory.</h1> Dust burns our eyes as we survey the city of Herat, Afghanistan from the rooftop of our hotel (<a href="https://renewcapital.com/new-strategy/afghanistan">read about the project</a>). The streets below are humming with signs of a country coming back to life after 30 years of war. Shopkeepers hawking products, motorcycles weaving in and out of heavy traffic, couriers moving good from shop to shop, and cafes peppered with shrewd businessmen working deals with soft voices. &nbsp;<figure class="image"><img src="/uploads/DSC_0051_e748cc3590.jpg"></figure>For over five years the RENEW team has been implementing market-based strategies to accelerate the development of economies in emerging markets. Our role to connect investors to businesses opportunities in the developing world is growing in demand as investors and philanthropists alike seek to create greater impact from their capital.Promising small- to medium-size enterprises (SMEs), ripe for investment, exist in countries all over the world like Uganda, Rwanda, Afghanistan, Mozambique, and many other countries. Yet, despite their amazing ability to exist in some of the most challenging business conditions imaginable, their growth often stalls at a critical point in their life cycle. Why? When many entrepreneurs in the U.S. and Europe get a loan from a local bank, access to affordable growth capital for SMEs in developing countries is almost impossible to find.Entrepreneurs running SMEs struggle to get the collateral needed to qualify for an affordable bank loan needed to buy equipment, floor space, land or other capital assets to expand their operations. As a result, they stay small. And this is why many developing economies have a distorted economic pyramid; at the top are large infrastructure projects financed by foreign governments (roads, dams, trade zones), and at the bottom are micro-businesses getting small loans from micro-finance organizations (artisanal shops, small farmers, etc.) In the middle, the numbers of SMEs are proportionately fewer. This "missing middle” is where RENEW sets out to engage the global investment community.SMEs are becoming known for their ability to accelerate and stabilize the growth of an economy, as they have in China (<a href="http://www.economist.com/node/18332610">Read Bamboo Capitalism</a>).RENEW finds these SMEs and connects them to investors. Our goal is to make investing in a business in Uganda as straightforward to a person in Minneapolis as buying their second home – of course, adding an amazing experience in a far away place that home buying doesn’t offer.RENEW and our partners at IBM and The Clearing have recently been asked by the U.S. Government to help stimulate the middle market of Afghanistan using the same market-based model we have used in many countries across Africa.After being on the ground here, it’s amazing what stories are NOT being told about Afghanistan in the international media. We hope you stay connected with us as we continue to work here and in other regions of the world. We also want to thank you for your continued support. Please follow us as we document our progress in Afghanistan. &nbsp;

Dust burns our eyes as we survey the city of Herat, Afghanistan...

No Guts. No Glory.

<h1 style="text-align:center;">Herat Phase 2...</h1>After a month back in the United States gauging interest among private investors, the RENEW team is returning to Herat to continue our work of finding and assessing high potential ICT businesses (SMEs). Our initial findings from the first month in Herat were good and we have several promising entrepreneurs who rose to the top as candidates for the project’s portfolio.<figure class="image"><img src="/uploads/DSC_0085_0_20c42932e3.jpg"></figure>Though Afghanistan is a stretch for some investors, our initial response from the U.S. and regional investors, whom we have approached, has been surprisingly positive. This illustrates the public's desire to get involved with development. It’s a monumental accomplishment to attract private investment for SMEs in Afghanistan, and the RENEW, IBM and The Clearing teams are working hard in both Afghanistan and the United States to achieve this goal.Things the Herat-based team is excited about:<ul><li>Participating in and encouraging the economic bustle of Herat City</li><li>Spending time with entrepreneurs and hearing their stories and visions</li><li>Rolling up our sleeves and diving into our due diligence process with the businesses</li><li>The strength of the RENEW team and the partnership with IBM, The Clearing and the Task Force</li><li>Our great security team</li><li>The depth, quality and potential impact of the project</li></ul>Things the team is not excited about:<ul><li>Kabul airport</li><li>Choppy internet</li></ul>

...the RENEW team is returning to Herat to continue our work with ICT businesses...

Herat Phase 2...

<h1 style="text-align:center;">Part 1: Angel Investing, Impact Investing and SMEs</h1> This is the first blog in a series entitled "A New Strategy for Africa and other Emerging Economies."Over the coming weeks and months, RENEW will be presenting a series of blogs and articles outlining ideas for a new strategy for how the U.S. and the West can engage Africa and other developing countries. Many people, in the fields of economic development, foreign diplomacy and international business, have begun voicing a need for something new.Our proposed strategy begins to address this need, and is shaped by three trends we see taking shape in the sectors of finance, development and philanthropy. These trends are:<ol><li>The rise of angel investors</li><li>The potential of SMEs in developing countries</li><li>The formalization of impact investing</li></ol><figure class="image"><img src="/uploads/SM_Es_Angels_and_Impact_59824fdb16.jpg"></figure>This blog kicks off a series of thoughts that will show how these converging trends could provide a new model for the U.S. and the West to catalyze growth in Africa and other developing countries, and strengthen our global competitiveness. Accompanying these thoughts will be perspectives from the field about the growing need for the U.S. to expand its role in Africa’s private sector; what we can learn from China’s strategy in Africa; and the changing perspective of Africa from a land of poverty to one of opportunity.

RENEW presents a series of blogs outlining a new strategy for how the West can engage Africa.

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Part 1: Angel Investing, Impact Investing and SMEs

<h1 style="text-align:center;">Part 2: The Rise of Angel Investors</h1>We continue our series on "A New Strategy for Africa and other Emerging Economies" with a focus on angel investors.In the coming posts we will try to answer the following questions: What is angel investing? Who are angel investors? What do they do? What are they motivated by? What role could they play in economic development? How can this role influence U.S. diplomacy and strengthen our global competitiveness? What is preventing angel investors from investing in developing countries? How is RENEW addressing these challenges?So let’s begin with some short, simple answers that we can build on.What is angel investing? Angel investing has significantly grown over the last two decades in the U.S., Europe and other developed countries, and now rivals the venture capital industry in size. It is a form of investing that occurs at a critical stage in a company’s life, between founders, friends and family (FFF) and venture capital. Investments are generally $25K - $500K in size, and are categorized as “early stage investments.” If you are interested, the following five-page executive summary of OECD’s report titled <a href="http://www.oecd.org/dataoecd/48/19/49310423.pdf">Financing High Growth Firms – the Role of Angel Investing</a> is an excellent read.Who are angel investors? Angel investors are high net worth individuals (HNWIs) who invest their time and capital in early stage, growth companies. Angels are often seasoned entrepreneurs and executives who invest as individuals or groups, in industries they know.What do angel investors do? In the U.S. in 2010, angel investors invested over $20 billion into 61,900 companies, compared with venture capital funds, which invested approximately $23 billion in only 1,012 companies (<a href="http://www.unh.edu/news/docs/2010angelanalysis.pdf">University of New Hampshire Center for Venture Research: The Angel Investing Market in 2010</a>)What are angel investors motivated by? Angel investors are motivated by many things – seeing companies grow, mentoring entrepreneurs, shaping an industry, risk, making a return, creating an impact, etc. For the purposes of this series we focus on a motivation that combines the desire to create social and/or environmental impact with the more traditional motives: this is known as impact investing. A recent Aspen Network of Development Entrepreneurs (ANDE) survey found that a significant number of HNWIs are looking to make impact investments between $25,000 and $100,000, equating to a total market value of $35 billion (<a href="http://www.jpmorgan.com/pages/jpmorgan/investbk/research/impactinvestments">Impact Investments: An Emerging Asset Class</a>).So to summarize several takeaways:<ol><li>Angel investing is a huge industry that fuels the economy in developed countries by financing early stage growth companies (avg. 27 times more investments than venture capital).</li><li>Angel investors have many skills they like to offer alongside their invested capital.</li><li>Angel investors could invest up to $35B in impact investments.</li></ol>Next week we will explore how angel investors could make investments in development countries and play a significant role as a new actor in diplomacy and development.

What is angel investing? Who are angel investors? What do they do?

Part 2: The Rise of Angel Investors

<h1 style="text-align:center;">Part 3: Angels Going Global</h1>A New Strategy for Africa and other Emerging Economies (Part 3): Angels Going GlobalIn search of the next Peter Thiel, Reid Hoffman and Mike Markkula...If you’re asking “who are those guys?”, don’t worry. Unless you spend your evenings rubbing elbows with some of Silicon Valley’s elite, you may not realize that these are some of the most famous <a href="part-2-rise-angel-investors.html">angel investors</a> in U.S. history. They made pretty smart investments in a few companies that have become very big names. Here’s the rundown:<ul><li><a href="http://en.wikipedia.org/wiki/Peter_Thiel">Peter Thiel</a> made a $500,000 angel investment in Facebook for 10.2% of the company.</li><li><a href="http://en.wikipedia.org/wiki/Reid_Hoffman">Reid Hoffman</a> made an angel investment in both PayPal and LinkedIn.</li><li><a href="http://en.wikipedia.org/wiki/Mike_Markkula">Mike Markkula</a> invested $250,000 in Apple, became a 33% owner and employee #3.</li></ul>So we see how angel investing is not only a multi-billion dollar industry, we also see, if done well, it can have multi-billion dollar payouts.The lead up to our next trend, begins when we look beyond Silicon Valley to places like Mumbai. Have you heard of <a href="http://www.vccircle.com/500/news/deepak-shahdadpuri">Deepak Shahdadpuri</a>? How about <a href="http://theglobalindian.com/?p=554">Naveen Tewari</a>? No? That’s OK too. They are tycoons from India who have become aggressive angel investors. Remember how we said angel investing is on the rise in the U.S., and is now a $20B a year industry? Well, it’s on the rise in countries like India too.<figure class="image"><img src="/uploads/table_angel_1f80ea5c31.png"></figure>We also see angels in developing countries taking on different angel characteristics from U.S. angels. They are not simply investing in their own country. They are investing along the economic continuum in India, the U.S. and U.K., and virgin markets like Africa.What does this trend mean? I believe it means that, not only is angel investing growing, but it is also going global. I find myself asking why? Why are angels from India investing in Mumbai, Addis Ababa, and San Francisco? Especially when angel investors traditionally invest close to home (within driving distance from their house) so they can oversee their investment and coach the entrepreneurs.I believe the answer may be a combination of three answers: (1) Angel investors from emerging economies have more risk tolerance than angels from developed countries, and are becoming “development-risk agnostic.” (2) The world is becoming flat. Old story, but the Internet and global travel allows angels to Skype with their investees from 3,000 miles away, and have global offices on Flight 611, seat #15C. And finally, (3) I believe global angels have a network of people they trust in the foreign countries in which they invest.I believe #3 is important. Reports say 70% of foreign investors in agricultural lands in Ethiopia today are Indians. Presently, the Indian community in Ethiopia numbers approximately 1,500 nationals, around a hundred of which are businessmen, many of which occupy key positions in the UN and in Ethiopian Government. This is actually a common story across much of Africa.So what I believe this means is:<ul><li>Angel investors are behind some of the greatest companies of our time.</li><li>Angels from emerging economies are “development-risk agnostic” and invest along a continuum of economically developed countries.</li><li>To become global, angels require people they trust in the country in which they are looking to invest.</li></ul>Our next blog will begin to explore Impact Investing; and how this industry could help U.S. investors become global angels.&nbsp;

If you’re asking “who are those guys?”, don’t worry.

Part 3: Angels Going Global

<h1 style="text-align:center;">Ethiopia Angel Trip 1: Overview and Photos</h1>The Ethiopia Angel Trip 1 (ETAT 1) is underway. From February 26 to March 4, 2012 a group of five angel investors from around the United States are with the RENEW team visiting small and medium enterprises (SMEs) in Ethiopia. So far the ETAT 1 group has visited with six entrepreneurs (seen or learned about more than 15 potential investments), toured the city, visited the Ethiopian Commodities Exchange, eaten at several local establishments (injera anyone?) and enjoyed too many macchiatos to count. Here are some photos of several of the businesses the group has visited. More photos coming soon...Housing Project<figure class="image"><img src="/uploads/2012_Ethiopia_b23dc80814.jpg"></figure>Project Overview: On the outskirts of Addis Ababa, this project meets a growing need for housing among returning Diaspora, expatriates and local Ethiopians. The project includes plans for the first 18-hole golf course in Ethiopia, shopping, a school, a medical facility and more.Medical Diagnostic Facility<figure class="image"><img src="/uploads/2012_Ethiopia1_478f27c5f0.jpg"></figure>Project Overview: Providing diagnostic medical services since 2009, this 24-hour clinic continues to add service offerings for patients and doctors in Addis Ababa. The clinic currently provides computed tomography (CT) scans, digital X-ray, ultrasound, laboratory diagnostics and several other services.Sustainable Farm<figure class="image"><img src="/uploads/2012_Ethiopia2_79e194aeae.jpg"></figure>Project Overview: This 20 hectare farm outside of Addis offers small vegetables to several European markets and fresh tilapia to the Ethiopian market. Additionally, chickpea trials are underway to improve the production potential of Ethiopian small holder farmers.

From February 26 to March 4, 2012 a group of five angel investors from around the U.S....