<h1 style="text-align:center;">RENEW Publishes First Annual Impact Report</h1>RENEW is proud to introduce the Impact Angel Network’s (IAN) first annual impact report; we hope this will be the first of many impact reports that we share with you. Included in the report, you will find a blend of quantitative and qualitative information on our Ethiopia portfolio, the IAN and RENEW.To start, 2015 was a good year. We closed five investments; four of those were in new portfolio companies, bringing the total size of our portfolio to seven great companies. We saw triple digit top-line growth across our portfolio, and double-digit bottom line growth as the improvements we are making across the portfolio begin to take hold. We did not exit any investments, we did not lose any companies, and one company made distributions to investors.Be sure to take a few minutes to read through our 2015 Impact Report:<figure class="image"><a href="https://renewcapital.com/sites/default/files/renew_-_2015_impact_report_0.pdf"><img src="/uploads/impact_report_256c9f5dbb.png"></a></figure>&nbsp;

Report captures financial and impact metrics, as well as stories from the portfolio

impact_report.png

RENEW Publishes First Annual Impact Report

<h1 style="text-align:center;">3 weeks, 7 Cities and 6,762 Miles Later</h1>The past three weeks have been a whirlwind for two of the RENEW partners, Matt and Laura Davis, who travelled thousands of miles across the United States to visit investors and members of the Impact Angel Network on our spring 2016 investor trip. The travel was divided between the West Coast and East Coast of the United States, with Matt and Laura spending time in Omaha, Portland, Seattle, San Francisco and Salt Lake City, and then back to Wilmington and Washington D.C. Here are just a few highlights from their time in these cities:<figure class="image"><img src="/uploads/investor_roadshow_spring_2016_349f8bd51c.jpg"></figure>Omaha: The purpose of this stopover was to experience the Berkshire Hathaway annual shareholders meeting as we continue to hone RENEW’s investor experience and investment strategy. It was an exceptional experience, and in the midst of it, we met great investors from around the world, almost bumped into <a href="https://twitter.com/warrenbuffett?lang=en">Warren Buffet</a> and <a href="https://twitter.com/BillGates?lang=en">Bill Gates</a> a few times and even ran into an Impact Angel Network member!Portland: RENEW met with several local impact investors and social entrepreneurs, and presented an informal information session for Portland-area business professionals to share about the growing fields of angel and impact investing. A big thank you to Kate Kilberg and her firm <a href="http://catalystlawllc.com/">Catalyst Law</a> for hosting!Seattle: With the help of IAN member <a href="https://www.linkedin.com/in/brian-ratzliff-96b23">Brian Ratzliff</a>, RENEW had a stellar time in Seattle visiting members of the IAN, local investors and other potential partners, including Intellectual Ventures Global Good, an amazing innovation laboratory funded by Bill Gates that is working on inventing and patenting innovations for the developing world. Also, during our time in Seattle, we co-hosted an event with Brian to discuss an Ethiopia <a href="../2015/ready-adventure.html">Econ-Tourism trip</a> that folks from Seattle will be participating in late in 2016 or early 2017.San Francisco: Matt and Laura were able to spend some quality time with IAN Advisory Board chair <a href="http://connectinggrowthglobally.com/">Jodi Morris</a> and her husband, who opened up their home and hosted a happy hour event for their friends and colleagues interested in the impact investing space. The team was also able to meet with several local impact investing firms to continue to discuss possible partnerships.Salt Lake City: The RENEW team met with members of our Utah chapter in Salt Lake City and Park City, as well as local community and business members to discuss impact investing and philanthropy in the context of Ethiopia. Matt and Laura had the privilege of meeting <a href="https://7summits7seas.org/">Martin Frey</a>, an angel investor who recently won a Guinness World Record for his adventures, and visited Brad Dickson at <a href="http://pandolabs.org/">Pando Labs</a>, Park City’s Innovation Center.Wilmington: IAN Advisory Board chairs <a href="https://twitter.com/turidonna">Donna</a> and <a href="https://twitter.com/jeffturi">Jeff Turi</a> opened up their Wilmington home to new and potential members of the Impact Angel work for a sesame laden event with Soom Foods in honor of our recent investment in the Ethiopian sesame sector. (@jeffturi)Washington DC: The roadshow ended on another high note with one-on-one meetings with DC-area cocktail event in downtown DC attended by members of the IAN, and partners and impact investors including <a href="http://acdivoca.org/">ACDI-VOCA</a>, <a href="https://www.usaid.gov/">USAID</a>, <a href="http://www.arabellaadvisors.com/">Arabella Advisors</a> and many others!It was a whirlwind, but all in all a wonderful trip filled with valuable dialogue IAN members, potential investors and too many stakeholders and partners to count!

RENEW partners crisscross the United States visiting investors.

13164457_10153705550507903_8478654497199701195_n.jpg

3 weeks, 7 Cities and 6,762 Miles Later

<h1 style="text-align:center;">35 Years from 300 Miles Up - What's Changed in Addis Ababa?</h1>NASA recently released almost 3 million photographs of Earth, which were taken over the course of 17 years from just beyond the outer limits of our atmosphere in space by the Advanced Spaceborne Thermal Emission and Reflection Radiometer satellite (or ASTER for short).* So what does outer space have to do with Ethiopia or investing?The World Economic Forum combed through the massive collection of images and pulled out six of the best photographs, and the capital of Ethiopia, Addis Ababa, is one of them! The photograph of Addis is listed among several others that portray man-made and natural phenomenon, like the Great Wall of China or the rainforests of South America.<figure class="image"><img src="/uploads/addis_ababa_outer_space_01_6ddcead63d.jpg"></figure>What is unique about this photo is that the top image shows what Addis Ababa’s urban development looked like in 1973 (from satellite Landsat MMS) versus what the city looked like in 2007. Clearly, the capital of Ethiopia has undergone serious growth and rapid urbanization over the past 35 years, and this comes as no surprise to RENEW.Ethiopia is considered to be one of the fastest growing countries on the continent of Africa and in the world, with double-digit annual GPD growth over the past decade (at 10.8% per annum) and an ever-increasing population (of 95 million people).** The country is quickly becoming a rising star in the region and is ripe with investment opportunities in many key sectors - a fact that is not lost on institutional and angel investors, like RENEW’s Impact Angel Network.With support from outside investors and the Ethiopian government’s Growth and Transformation Plan II, which seeks to make Ethiopia a lower-middle income country by 2025 through economic growth, industrialization and structural transformation, the country’s entrepreneurs and innovators are ready to step in and place Ethiopia on this path of development.We can’t wait to see what Ethiopia and Addis Ababa look like from space in another 35 years - we think it will be a beacon of light that rivals that of any major U.S. city.*<a href="https://www.weforum.org/agenda/2016/04/nasa-has-released-3-million-images-of-earth-these-are-6-of-the-best?utm_content=buffera043c&amp;utm_medium=social&amp;utm_source=linkedin.com&amp;utm_campaign=buffer">World Economic Forum</a> **<a href="http://www.afdb.org/en/countries/east-africa/ethiopia/ethiopia-economic-outlook/">Africa Development Bank Group</a>

NASA satellite captures the city's rapid development and urbanization over 35 years

addis_ababa_outer_space_-_2_0.jpg

35 Years from 300 Miles Up - What's Changed in Addis Ababa?

<h1 style="text-align:center;">METAD: More Than Just Great Coffee</h1><a href="http://metadplc.com/">METAD</a> is well known for its 100% organic coffee cherries - just ask the likes of <a href="http://www.klatchroasting.com/Hambela_Natural_p/eth_ham_nat.htm">Klatch Coffee</a>, <a href="http://www.royalcoffee.com/Products/0033700">Royal Coffee</a> and <a href="http://www.intelligentsiacoffee.com/product/coffee/benti-nenqa-ethiopia">Intelligentsia</a>. What many may not realize is that in addition to METAD producing great coffee, the company also creates enormous social impact in the local community.<figure class="image"><img src="/uploads/metad_social_blog_2016_46f8e1d3f8.jpg"></figure>Back in 2014, Aman Adinew and the METAD team began sponsoring a group of school students located near the Hambela farm, and they continue to provide the children with uniforms and subsidize the teachers’ salaries. Under Aman’s care, the school has grown from 400 students to more than 600, creating the need for the construction of a second school building - a project that METAD aims to lead and complete by Fall of 2016.&nbsp;METAD is also in the final stages of building a 400 square foot community center in a nearby village that will hold up to 1,000 people at a time. The building is in the final stages of construction and is slated to open in a few months time. The center will be used for community social gatherings, as well as part of METAD’s out-grower farmer training program, wherein the company trains thousands of local farmers on growing and harvesting best practices so they can achieve the best prices for their coffee yields.The RENEW team and the Impact Angel Network are proud to be a part of METAD's story.

metadplc.com

METAD is an Ethiopian specialty coffee company with a vision for crop-to-cup coffee. The Company has strengthened Ethiopia’s coffee brand in the international market, and helped local farmers improve the quality and value of their harvested crop.

metad_logo_w_tag_rgb_57039cef50.png

Metad.avif

METAD produces more than just great coffee, the company also creates enormous social impact in Ethiopia

img_5366.jpg

METAD: More Than Just Great Coffee

<h1 style="text-align:center;">RENEW Builds Ethiopia Financial Industry Experts</h1>We are excited to announce that RENEW’s analysts, <a href="https://renewcapital.com/team/berkessa-behailu">Berkessa Behailu</a>, <a href="https://renewcapital.com/team/lulit-negash">Lulit Negash</a> and <a href="https://renewcapital.com/team/bethlehem-bogale">Bethlehem Bogale</a>, have completed the CFA Institute’s Claritas Program and are now official Claritas investment certificate holders.According to the CFA Institute’s website, the Claritas Program “covers the essentials of finance, ethics, and investment roles, providing a clear understanding of the global investment industry.”* The program entails approximately 100 hours of self-guided studying and prep work before taking a two-hour certificate exam, all within a six month time period.<figure class="image"><img src="/uploads/dsc_0707_2_11496aed22.jpg"></figure>I discussed the exam experience with Berkessa, Betty and Lulit recently:1) What was your motivation for registering for the Claritas Program and taking the investment certification exam? Berke: I've worked in the investment and consulting world for about six years now. My background is in business administration. Though I went through the basic trainings of market research and investment analysis, my skills are mostly developed through on the job experience. I wanted to assess if how I look at markets and analyze investments is in accordance with best practices used in more developed markets. Registering for Claritas program was the easiest way to assess my skills. Lulit: My motivation was to know more about the investment world and compare what is happening in the world with Ethiopia and how RENEW operates. Betty: I registered for the program because I wanted to understand more about the investment industry.2) Do you feel that you gained new knowledge from your prep work, and how is it applicable to your job at RENEW? Berke: Yes. In addition to being a refresher for the courses I took in college on financial analysis, Claritas has taught me new concepts about investment management, risk assessment, quantitative analysis and valuation. This directly relates to my job at RENEW as an analyst. It has enabled me to be more focused, detailed oriented and analytic in the analysis process, and evaluate investment opportunities more rigorously. I’ve added new tools and instruments in my assessment and can use additional ratios and indicators. Furthermore, even though it’s not yet applicable in Ethiopia, I’ve gained new knowledge of how the securities market functions, including the different players and their roles. It was quite interesting. Lulit: I have gained a good understanding of what investors look at while evaluating deals and what companies that are seeking investment should be doing in order to be successful. My work at RENEW is mainly focused on the portfolio companies, specifically growing the companies to generate returns for investors. So my studies supported how important it is for investment firms to help companies excel and generate positive returns for their investors. Betty: Yes, I did gain new knowledge. The prep work helped me to better understand the standard way of reporting to investors and have a deeper knowledge of the ethical standards I need to uphold as an investment analyst.3) What was the most difficult part in studying for the exam? Was it the self-guided studying or any of the industry concepts? And, how did you overcome those challenges? Berke: Overall, it wasn’t that difficult. But learning about investment structures and markets, which are not yet developed in Ethiopia was a little confusing. But, exploring real-life examples and reading news articles and stories concerning the lessons showed me their practicality. I watch TV shows like Shark Tank and Suits; such shows help me to understand how the lessons in Claritas can be applied in real-life scenarios. Also, it’s been a few years since university, where I had to study for and take exams, so disciplining myself to concentrate and study for hours was a challenge. I was able to adapt after struggling for a while. In addition, I was loaded with work because we were going through a closing process for one of our recent investments. So, I took a few days off from work before my exam, and reviewed my studies and took mock exams. I’m happy it worked out well. Lulit: I didn't face major challenges in my studies, but it has taught me how to better manage my time between work and studying; it’s about being disciplined. Since most of the exam subjects were related to investing, I was able to relate the concepts and compare them with what we are doing at RENEW. So, working in the investment industry helped me get a clear understanding of the subject matter. Betty: Since I was already operating as a professional in the investment industry, there wasn't much challenge with the prep work. The studying was pretty much self-guided and the mock exams helped me in managing my time.4) How do you plan to use your deeper understanding of financial industry essentials in the future? Berke: I’ve already made a few developments in the way I build financial models, assess investment risks and calculate business valuations. I hope to continually improve my analysis skills and help our investors make well-informed investment decisions. Taking the Claritas program exam has taken me one step closer to achieving this goal. Lulit: I am very interested to know more about the investment industry now that I’ve had this exposure. I plan to continuously read investment reports, take courses and also implement what I have learned in my work to see it in action. Betty: I plan to use my knowledge by making sure we don't run into any conflicts of interest, while managing the clients and reporting financial statements in a standardized way.We are incredibly proud of Berkessa, Betty and Lulit, the future of Ethiopia’s finance industry. They all worked diligently for their Claritas Program certificates, and they are already implementing their hard earned knowledge everyday at RENEW.If you are interested in joining a team that strives to be their best selves and brings a diverse set of skills to the table, then be sure to reach out and inquire about three job openings in our Ethiopia office: junior project manager, junior analyst and counsel.**<a href="https://www.cfainstitute.org/programs/claritas/Pages/index.aspx">CFA Institute: Claritas Program</a>

A Q&A session with RENEW’s analysts on their recent accomplishments with the Claritas Program.

dsc_0707_2.jpg

RENEW Builds Ethiopia Financial Industry Experts

<h1 style="text-align:center;">Steady the Course, Ethiopia</h1>There is an allegory that goes something like this: A group of people walking along a riverbank sees people drowning in a river and rushes down to help. Soon others rush in to pull people out of the river. These heroes risk their lives to save what seems like an endless number of drowning victims coming towards them. Then another group starts walking upstream. Those pulling people out of the river ask where they are going. They say, “to stop people from falling in.”Some of you may have heard this allegory before. While a little oversimplified, I find it helps me stay focused and not become caught up in the emotional frenzy of certain situations - for example, Ethiopia where the country is going through another drought. As an impact investor in Ethiopia, it can sometimes be tempting to rush down to the riverbank, versus steadying the course to fix the issues causing people to fall in.<figure class="image"><img src="/uploads/steady_the_course1_e6b86fff1f.jpg"></figure>The River: Scientists report that El Niño, a cyclical climate event that can cause drastic shifts in normal weather patterns, is creating drought conditions here in Ethiopia.* While Ethiopia is industrializing, its economy is still largely agrarian, especially in rural parts of the country. As of 2015, Ethiopia’s agricultural sector generate 41.4% of the country’s GDP and 85% of employment.** Agricultural actors are not major commercial farms with sophisticated irrigation systems that can tap Ethiopia’s vast water reserves thousands of meters below the surface. Rather, these are small farmers managing their own plots of land, relying on predictable weather patterns to plant, water and harvest their crops. When the climate changes, as is the case during El Niño years, the rains are neither as long nor as heavy, and yields decrease. In severe cases, families are not able to make an income from their harvest, or worse, they run out of food. They are the metaphorical victims in the river.The Heroes: Seeing this drought unfold, government and international aid organizations mobilize the international community to rush down to the river and begin pulling people out. In an ideal situation, this would be efficient and perfectly coordinated. Food would be shipped into the worst hit areas, and people suffering from the drought would receive much-needed, but temporary relief. However, in less developed countries, infrastructure issues can muck this up. Containers can be held up in poorly managed ports, import documentation is lost, trucks break down and food spoils.The Group Heading Upstream: So, why does this cycle seem to happen every seven to ten years? Where exactly are people falling into the river? How can the situation be fixed so that we no longer have to pull people out? It’s a challenging question to ask: “Who will step away from the riverbank and venture upstream to address the reason people are falling into the river in the first place?”The images of drought tug at my heartstrings, prompting action. However, the reason people continue to suffer on account of volatile weather – i.e., in terms of our analogy, falling in the river - is a lack of resilience. At the most basic level, this is evident in agricultural practices, but also more broadly in the agricultural economy, which lacks the technology, financing and diversity to weather the drought. The agricultural economy is the bridge Ethiopian farmers rely on to earn a living and sustain themselves, yet this bridge needs work before it is structurally sound. When it starts to give way in times of stress, causing victims to fall into the river, we need heroes to go down river and pull people out. This is critical, but not sufficient. We must also build a stronger bridge; a resilient agricultural economy.The Hole in the Bridge: At this point, I should clarify an assumption I am making about you, the reader: this is, that you believe many of the challenges we experience in developing countries can be solved when the economy strengthens in an equitable way (i.e. not just a small group of wealthy elites, but a thriving private sector with many thousands of businesses of all sizes).If people are falling in the river because a bridge is failing, responders must fix the holes in the bridge in a lasting way, with stones and cement. In the case of Ethiopia, the “stones” are companies – lots of them, in all shapes and sizes - little ones, medium ones and big ones. Together, these companies make up a diversified, and therefore resilient private sector, providing jobs, generating tax revenue and lifting incomes of millions of people. Taxes pay for the “cement” of the bridge, or the infrastructure for wells, electricity and roads around the country. The teams working around the clock to build these companies are the bankers, investors, entrepreneurs, brokers, government leaders, development workers, construction and road crews, dam builders, policy reformers and tax collectors. These individuals know droughts will come and, thus, are preparing a bridge to withstand the challenge. They know they must steady the course.To the heroes - those in Ethiopia and in the international community that are responding to the drought, we thank you. It is both deeply important and critical you are there. And in this time of emotion, let’s also remember to keep on building that bridge – to invest in the thriving, varied economy that will withstand the next challenge. Steady the course, builders! We are in this together.*<a href="http://www.bbc.com/news/world-africa-36012217">BBC: Hunger in Ethiopia After Drought Exacerbated by El Nino</a> **<a href="https://www.cia.gov/library/publications/the-world-factbook/geos/et.html">CIA The World Factbook: Ethiopia</a>

In honor of both the rescue workers and hole fixers.

dsc_0369.jpg

Steady the Course, Ethiopia

<h1 style="text-align:center;">On the Road Again</h1>Matt and Laura Davis, partners of RENEW, will be heading from Ethiopia back to the United States to meet with investors at the end of April through the first two weeks of May. The partners will be traveling to the cities of Washington D.C., Omaha, Portland, Seattle, San Francisco and Salt Lake City.The purpose of RENEW’s investor roadshows is to meet with the members of the Impact Angel Network, foster new connections and provide some face time with the network’s founding members.<figure class="image"><img src="/uploads/screen_shot_2016_04_14_at_11_18_44_am_0_db1fdc9dba.png"></figure>If you have time to meet Matt and Laura, or know other like-minded investors in these cities, please let us know. We hope to see many of you in the coming weeks!

RENEW’s Matt and Laura Davis will be traveling to the Pacific Coast in April for a multi-city roadshow.

screen_shot_2016-04-14_at_11.18.44_am_0.png

On the Road Again

<h1 style="text-align:center;">Never Forget Africa</h1><figure class="image image-style-align-center image_resized" style="width:34.07%;"><img src="/uploads/mountains_7d5a5e45b4.jpg"></figure>I first visited Africa in the spring of 2006, soon after graduating from high school. I previously received a small taste of international travel while visiting Europe with my family several years earlier. However, there existed in me a deep, unfulfilled desire to go out and experience the developing world and truly broaden my worldview. At the time, my aunt and uncle were living in Nairobi, so I jumped on an opportunity to live with them temporarily and volunteer at a community center providing recreational activities and services to Somali and Ethiopian refugees. I was instantly struck by the warmness, perseverance and inner beauty of both the refugees and the native Kenyans. This experience made such an impression on me that I vowed it would not be the last time I would visit Africa.A key component of the curriculum at Eastern Mennonite University (my alma mater) is the cross-cultural program, which requires students to spend a semester overseas to study foreign language, history and culture. EMU wants students to truly experience life as a local through homestays and to help communities in the form of service projects. The fondness I had of Kenya naturally led me to select the trip to South Africa and Lesotho. Once again, I was overwhelmed by the graciousness and determination of the African people. They deserved better employment opportunities, greater access to quality education and the baseline necessities that I had always taken for granted. Somehow, through their troubles, they maintained the ability to see the opportunities that existed in problems, rather than dwell on the insufficiencies. The last entry I recorded in my journal from this trip included three words: “Never forget Africa.” While I felt a sense of guilt in returning home to my privileged life in the U.S., I figured there had to be a way for me to help. The difficult part would be finding out exactly what that was, and what role my education in business and accounting could play in that discovery.<figure class="image image_resized" style="width:100%;"><img src="/uploads/group_pic_3a216fffcc.jpg"><figcaption>Photo credit: Michael Spory</figcaption></figure>I enrolled in James Madison University’s evening MBA program in the fall of 2014 while continuing to work full time. I worked at Rosetta Stone since graduating from EMU in 2010 in procurement and business operations roles. I enjoyed my job, but my main motivation for pursuing the MBA was to find a clearer direction on where to ultimately take my career. The most influential component of the program was a class on business ethics and corporate social responsibility. Within this class we studied the concept of firms creating shared value. CSV describes business models, which inherently and by their nature produce social benefit, as opposed to CSR activities, which usually begin and end with a donation to a charitable organization; they are essentially a line item on the income statement. In learning about CSV, I came across the field of impact investing and started investigating further. It very quickly became clear that I wanted to be a part of this field.When I discovered RENEW, I was instantly intrigued. RENEW carries out a business model that uniquely and directly addresses a crucial financing gap (the “Missing Middle”) in African economies, through private sector investments in small and medium-sized enterprises. The company works with development partners and angel investors to carry out their mission. I could not help but become excited, and I applied for an opening as the contracts and operations manager.So here I am, not only staying true to my promise to never forget Africa, but also actively working to create lasting economic growth for the benefit of its people. &nbsp;

My story of staying true to a promise to create lasting economic growth for the continent.

group_pic.jpg

Never Forget Africa

<h1 style="text-align:center;">Term Sheets - Just What the Heck Are They?</h1>Investing On The Frontier’s host, Matt Davis, speaks with RENEW’s own legal guru and General Counsel, Tom Scriven, in the podcast’s latest episode.After relating some quick updates on key Ethiopian economic indicators (exchange rates, inflation rates, coffee prices, etc.), Matt and Tom set out to decode and provide clarity on term sheets, and why they are such an important part of the investment process – for both investors and entrepreneurs.Tom gives some great insight on the significance of going to terms, the typical outline of a term sheet and defines several key terms that are commonly found in a term sheets that every investor should know.Novice and sophisticated impact angel investors alike will find value in this informative discussion, so be sure to tune in to this month’s episode of Investing On The Frontier!&nbsp;&nbsp;

Investing On The Frontier podcast invites RENEW’s Tom Scriven to discuss all things term sheets.

screen_shot_2016-04-08_at_12.38.37_pm.png

Term Sheets - Just What the Heck Are They?

Subscribe

Context matters. Stay smart with the Africa Brief.

Africa_Brief_Logo.avif

beehiiv.D 1.png

The Africa Brief

Get news and insights from the Renew Capital team in our LinkedIn Newsletter.