Here is a list of our most Frequently Asked Questions. Click each question to expand and read the answer.

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What is InVenture?

InVenture is the first micro-investment platform that allows everyday individuals to invest in small businesses from under-served communities across the globe. We believe that providing small businesses with investments - a type of financing which most small businesses cannot access - will enable them to achieve real growth and financial independence, and help fight poverty in their communities.

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• What is the InVenture Capital Corporation?

  The InVenture Capital Corporation (ICC) is a certified B Corporation (pending) that provides expansion capital to rapidly growing enterprises in developing communities. ICC conducts due diligence on potential entrepreneurs, tracks the progress of the businesses through their expansion, and relays financial and social metrics to online InVestors. Furthermore, ICC houses the online platform through which all financial transactions are administered and manages the global portfolio of InVestments. For the online InVestor, ICC's platform and the entrepreneurs featured on it are the foundation of the user experience.

• What is the InVenture Foundation?

  The InVenture Foundation provides educational training and on-the-ground advisory support to InVenture entrepreneurs and their communities. We primarily do this through our fellowship program, working in an InVenture community with a partner microfinance institution (MFI) or NGO to provide the necessary business guidance and training to entrepreneurs in the field. In addition, the InVenture Foundation partners with universities and grant making foundations to provide access to the latest research, technology and human resources for the benefit of InVenture Foundation's entrepreneurs and fellows.

  Finally, as a requirement of participating in InVenture Foundation's programs, entrepreneurs are required to reinvest 5% of their net revenues back into local community initiatives, with a focus on public health and education activities. The InVenture Foundation uses a transparent process for scouting, evaluating, approving and developing relationships with local non-government organizations (NGOs) as potential recipients of entrepreneurs' re-investment funds.

• What are micro-investments?

  Micro-investments are similar to traditional investment models, except that the capital, or investment, is much smaller. Individuals who invest with InVenture can InVest as little as $25. The return on investment is collected through a profit sharing model that is tailored to each region and business owner that we work with. When these small investments are joined together, they add up to a rather sizeable financial contribution.

• What is expansion capital?

  Expansion capital, which comes most often in the form of public investments, gives businesses the freedom to take risks and grow - which is why it is a popular and successful form of financing in the developed world. InVenture is bringing this capital to under-served communities - both abroad and in the U.S. - in order to give businesses there the same opportunities as businesses elsewhere.

• How does InVenture choose small businesses to invest in?

  InVenture begins by partnering with a local NGO or MFI to find businesses in need of expansion capital. We have a preference for businesses that are socially responsible and community oriented. They must have a track record of positive cash flows for 2-3 years or have been successful micro-loan clients in the past with 100% repayment rates. Additionally, each business needs to demonstrate a need for funds that will result in increased profit, and they must have the potential to hire more individuals within the specified investment term. Lastly, they must be willing to commit percentage of their profit to local community initiatives.

• How is the InVestment paid back?

  Each business receives a set term period for the InVestment, typically two years, and often with a grace period after the initial disbursement of the InVestment. Everyday our business owners report their profits through our SMS system; additionally, formal reporting, with the help of our field partners and fellows, takes place every two weeks.

  InVenture receives a set percentage of the business' profit in the form of a dividend (10%) as a service fee, and a dividend of (12%) which is returned to our InVestors. At any point during the InVestment term, the business owner can pay back the original principle and exit the InVenture program. If they do not pay back the principle within the specified investment term, they will continue paying monthly dividends at a 5% increased rate for another two years.

• Can you explain the Community Re-Investment Program?

  Before InVenture funds a micro-business, we perform a regional needs assessment analysis to discover the community initiatives that are in need of support. In consideration from previous field surveys, InVenture has determined that because we focus on women-run businesses, the community re-investment will currently be directed at improving the situation of females in their surrounding communities. Therefore, we provide our  micro-entrepreneurs with the option to reinvest into public health or education initiatives aimed at improving the health and quality of life of women.

  When we choose our micro-businesses, we inform them that in order to join the InVenture program, a percentage of their profits during the investment term must be given back to their community.

• So where do I come in?

  You can help micro–businesses grow and build their communities by becoming an InVenture InVestor. Our person-to-person online platform allows you to contribute your own money directly into the micro–businesses of your choosing. InVenture transfers the principle InVestments and a share of any returns (in the form of dividends) into your Impact Portfolio on a monthly basis.

• Is there a minimum amount I have to put in to be an InVestor?

  A minimum InVestment starts at $25.

• How can I track where my InVestment is going?

  You can track your InVestments directly by logging into your account, My InVenture. My InVenture is an individual impact portfolio that tracks the progress of the micro–entrepreneurs you've InVested in. My InVenture provides you with daily and weekly feedback, directly from the micro–businesses including metrics such as actual sales numbers, expected monthly profits, as well as social performance measurement analysis of the micro–entrepreneurs. Finally, we provide you with portfolio tracking data so you can see your investment returns compared to the InVenture average portfolio.

  Will my investment be locked in the business for a specific period of time? Can I move my investment to another fund? As you start to receive your principle back into your account, you can direct those funds as long as they are equal to US$25 to another entrepreneur of your choosing.

• Will my InVestment be locked in the business for a specific period of time? Can I move my InVestment to another fund?

  For now, your principal is held until the InVestment term is completed. You can then reinvest your principal amount to another micro-entrepreneur of your choosing, or direct it back to you bank account.

• Am I required to reinvest the gain I made? Can I make a profit out of this InVestment?

  InVenture InVestors receive back their original InVestment amount and the return on their InVestment (SEEDs – see definition below) back into their portfolio accounts. InVestors have the option to reinvest or withdrawal their original InVestment amount. However, you as an InVestor are required to re-invest your SEEDs into a new mirco–entrepreneur thereby exponentially increasing your impact within your My InVenture portfolio.

• What are SEEDs?

  SEEDs = Social Enterprise Expansion Dollars. They are literally the financial returns from your InVestment, and represent your exponential impact on not only the business you've chosen to contribute towards but also the impact on their communities.

• How do I receive SEEDs?

  From making InVestments in our micro–entrepreneurs. For example, an micro–entrepreneur in India is asking for $2,500 in capital to grow her business. You pledge $100. After 18 months, the micro–entrepreneur has grown her micro–business and has generated a 50% return. You will receive your $100 in principal and 50 SEEDs.

• So SEEDs represent the micro–entrepreneurs profit?

  Yes. SEEDs are the financial profit generated by the micro–entrepreneur's business.

• Can I convert SEEDs into Dollars?

  The short answer is no. While we'd love to be able to provide you the option of receiving the actual financial return, the SEC won't let us. We hope you understand and instead look to the long-term exponential social gains that you have made through your InVestment in our micro–entrepreneurs and how it is impacting their communities. To learn more visit our Terms & Conditions page.

• So What Can I Do With SEEDs?

  This is the really great part. You can direct the profit from one micro–entrepreneur to help fund another. This is where the change reaction begins: As you pick successful micro–entrepreneurs, the impact from your initial contribution can grow and grow.

• Is this gain tax deductible?

  The InVestment is not tax-deductible unless you choose to donate your principal to The InVenture Foundation.

• What is microfinance?

  Microfinance is the provision of financial services to the poor, under-served, or un-banked communities across the globe. While it encompasses a broad range of services, including savings, insurance and credit, the majority of microfinance services involving providing debt services, or microloans, usually ranging from 50-1000 U.S. dollars, to both individuals and groups.

• How is my InVestment different from a traditional microfinance loan?

  Currently, microfinance institutions offer their clients the option of taking out a loan with a fixed interest rate. These loans come with a set repayment schedule, and interests rates currently range from 10% to as high as 80% APR in some countries. Every month (or two weeks, depending on the terms of the loan) the borrower is required to pay back a fixed amount of the principal plus interest. Regardless of the financial impact of the loan, each borrower must pay back the full amount of principal plus interest. This results in low to no risk activity on the part of business owners, which prevents them from implementing large scale innovations in their business for fear of failing and being unable to repay their debt.

  When you invest in an InVenture business, you will receive a percentage of that business's profit. Since our businesses are looking for long term growth, and do not plan to go public or be bought out, our investments are slightly different from traditional venture capital or private equity models in the United States. Our business owners are responsible for paying back the entire principal of the investment along with their dividend payments during the investment term. They now have a choice. They are able to save more, and pay back in a flexible way that meets their business needs. Additionally, since they only pay according to how well they do, business owners are free to take bigger risks, and hopefully return bigger rewards. They are given the ability to think about the long-term growth of their companies and of their lives as well.

• What happens to my money?

  For every dollar you InVest through InVenture 100% of the funds go to the business of your choosing. Each InVestment is administered directly by our local partner organization; as the money is returned to InVenture, both the principal and SEEDs go directly into your My InVenture account, and is proportional to the amount you initially InVested.

• Why did we create InVenture?

  We founded InVenture with the belief that traditional microfinance models weren't doing enough to lift communities out of poverty. While $64 billion has been lent to start micro–businesses in the developing world, there is currently little to no funding offered to help these micro–businesses expand. This growth is vital, in that it creates new economic opportunities and fights poverty by providing jobs and building commerce. While other forms of microfinance and aid can provide much-needed assistance to under-served communities, without sustainable business growth, there is little hope for these communities to develop and ultimately escape poverty.

  We created InVenture to help solve these problems. InVenture provides expansion capital to successful micro-businesses and becomes their partner not their creditor. We believe in aligning interests; by partnering with and investing in businesses, they are now able to take on the potential risk of larger scale innovations without a constant fear of failing and being unable to repay their debt. Just as these micro–businesses flourish and create positive successful communities, good communities in turn can help grow more good businesses.

• I know a social entrepreneur in a developing country who I think you should invest in. Can you help?

  Yes! Please send us an email at info@inventurefund.org and let's set up a time to chat! We love to hear from our user community and supporters, and would love to speak further about ideas and feedback that you have on how to continue to grow and work with InVenture.

• How can I help further?

  Please check out our get involved page to find out more information.

  If you're not ready to be an InVestor, you can still help fulfill InVenture's mission. Just by spreading the word about InVenture to your friends and colleagues you can help build support for our cause. Tell your friends why micro-loans aren't enough to get communities out of poverty - and how financial and educational investments can help. Or explain to your co-workers how our community re-investment strategy helps to build a thriving local marketplace and community. Get involved in the conversation, we want to know what you think!

  Be sure to check out the rest of our site to find out more about us and how we work. Learn about some of our progress by sending a blank email to info@inventurefund.org. And, don't forget to follow us on Facebook and Twitter (if you're not already!). We hope you'll stick with us as we continue to work towards our goal of building viable, socially conscious businesses that give back to their communities. Help us build a global community of investors and supporters who have a real shot at creating lasting change. We're ready to make our mark on the world, but we can't do it without you!