When prioritizing investments, IFC considers the following factors:
Management: experience, collective track record, industry knowledge;
Stage: companies with market traction (sales/order book) and substantially de-risked technology;
Competitive advantage: lower production costs/superior performance, barriers to entry including patents, know-how, brand, supply and distribution;
Market & growth potential: large market with rapid penetration potential;
Business Model: Volume and gross margin forecasts generating positive cash flow within 3 years;
Quantifiable environmental benefits: e.g. estimated GHG emission reductions, kWh saved, etc.
A company seeking to expand an existing enterprise can approach IFC directly. Please include the information in the outline below in a summary of no more than 6 pages. This will allow us to respond to you more promptly.
1. Company Legal Name
2. Country of Domicile
3. Sector - e.g. energy efficiency, renewable energy, carbon capture, water efficiency, etc.
4. Proposed IFC investment - amount requested, % shareholding offered and timeline to closing
5. Business Concept and Market Opportunity
a. Description of business activities (end product, raw material procurement, technical process, suppliers and buyers, etc.)
b. Rationale - economic value proposition of product or solution, projected profitability, market size and penetration strategy
c. Goal of this round of financing (financial and operational targets, timing of following round, interim burn rate and timeline for break-even)
d. Innovation - new technology, business model, entrance into a new market, other “firsts”
e. Competition - incumbents and new competitors, sustainable competitive advantage
6. Company History
a. Operational experience product reliability, client base and order book, staff size
b. Financial performance to date – audits if available
c. Funding to date - details of existing loans, grants, prior equity rounds (size, valuation, investors’ identity, details of special rights including regarding approval of current round)
7. Management team - CVs, track record of collaboration, ownership
8. Use of funds – and investment timeline. Include amount (in US Dollars) and % of total cost.
a. Sales, General, and Administrative
b. Research and Development
c. Capital Expenditures
d. Working capital
9. Financial Plan – and level of commitment of each funding source (e.g. approved/disbursed). Include amount (in US Dollars) and % of total cost.
i. Each existing shareholder ii. IFC iii. Each new investor
b. Debt (if appropriate)
i. Long term debt ii. Short-term debt iii. IFC iv. Other
10. Shareholding structure – list all existing investors, their relationship with the company, and their ownership in each series/class of shares.
11. Financial projections and assumptions – sales volumes, price per unit, cost structure per unit, administrative expenses, marketing and sales costs, etc.
12. Environmental performance – Measurable climate change impact (tons of CO2 equivalent emissions avoidance) and other environmental benefits.