Creation of a new BoP Industry
I am very impressed with the investing criteria of IGNIA, an impact investing fund based in Monterey, Mexico.
Their criteria includes scale and impact, but what really impressed me was the idea that they want to invest in companies that will create a new industry at the Base of the Pyramid (BoP). As opposed to a typical venture capital firm, which would want to erect barriers to entry and protect the market share of portfolio companies, IGNIA invests in companies with the specific hope that the idea will attract new firms to enter, and for an entire industry to be created around the innovative solution.
Their criteria says they want to invest in “Businesses capable of fundamental systemic change“. Businesses that, “Generate substantial economic value to support expansion on a massive scale and attract new industry entrants to the BoP market“. “A model that gets better and better…and attains lower and lower costs through time“. This allows the solution to, “outliv[e] its current champions“. The impact they seek is “not achieved through one firm, but through the creation of an industry“.
I do not know much about IGNIA, or how successful they have been at accomplishing this mission, but I absolutely love the idea.