The International Rescue Committee has spent five years working on long-term funding solutions for people displaced and affected by conflict and natural disasters. With global aid in steep decline, and climate and geopolitical crises on the rise, “we are looking at financing new models that have more sustainability potential and are less grant dependent – and from that lens, looking at leveraging an impact investing approach,” the IRC’s Anne Partridge told ImpactAlpha.
The newest tool in global humanitarian NGO’s toolkit is Airbel Ventures, an Africa-focused impact fund for startups serving the humanitarian sector.
The venture fund, launched during the World Economic Forum in Davos, Switzerland, is the latest example of how humanitarian organizations are thinking about how to support crisis-affected communities for the long-term. UNICEF, Save the Children and Mercy Corps also have venture funds.
“We’re looking at where we can leverage new models, technology and innovation to replace outdated technologies and infrastructure,” Partridge said.
Pilot mode
Airbel Ventures is beginning with a pilot fund that will invest in a dozen companies in climate, health, economic resilience and education before raising a larger fund. Its first investment is Nigeria-based Signalytic, which provides solar-powered computing devices that ensure reliable connectivity for remote healthcare centers. Airbel Ventures is also considering startups using predictive analytics to anticipate food insecurity, and locally-adapted voice AI to reduce the cost and time of on-the-gound data collection.
The IRC is raising philanthropic capital for the pilot fund and will reinvest its returns. A pot of grant funding will cover post-investment support. Airbel Ventures will also leverage the IRC’s field operations and robust procurement networks to give startups the best chances of success.
“We want to prioritize businesses that have a very low modification bar to enter the humanitarian sector, so that limited adaptation is needed on the model,” said Partridge, adding, “We are hoping that by doing this, other players in the humanitarian sector will be able to procure in a similar way.”
