Service Facility for Blended Finance Pillar

To catalyze investment into Cambodia’s small and growing businesses (SGBs) by providing support through technical assistance, the Service Facility for Blended Finance pillar offers a multi-investor, multi-sector Technical Assistance (TA) facility for Blended Finance. This facility is branded as Entrepreneur Investment Support (EIS) Facility that supports SGBs that are trying to secure investment and have raised funds and need additional non-financial support for sustainable growth. SGBs can access various forms of support through a pool of vetted consultants from this one-stop shop TA facility.

Background

The Service facility for Blended Finance Pillar is born out of the success of the Regional Investment Support for Entrepreneurs (RISE) project of Swisscontact and USAID to address the financial and non-financial barriers faced by early and growth enterprises and start-ups. RISE aimed to create impact for the base of the pyramid by providing inclusive and sustainable technical assistance (TA) to small and medium enterprises (SMEs) with high potential for positive social and environmental impact.

 

Small and growing businesses (SGBs) face ongoing challenges in accessing capacity-building services that would enable them to absorb investment capital. These services are often unaffordable for SGBs, who face a $3.7 billion funding gap in Cambodia. Most SGBs belong to the “missing middle” segment, which suffers from underdeveloped leadership, technical knowledge, and strategic business management skills. This also creates challenges for impact investors, who encounter a low number of investment-ready businesses, a lack of investable pipeline, and a high cost of deal sourcing and due diligence, especially for investors without a local presence in the region.

Therefore, to address these challenges, the Entrepreneur Investment Support Facility (EIS) brand was designed to operate as a one-stop shop where entrepreneurs can access various forms of support through a pool of vetted consultants. EIS will collaborate with its investors and strategic partners to develop products and services tailored for investees and their supporters. These will include Investment Readiness, Post Investment Support, Matchmaking Services, and Pro-bono Networking. Moreover, EIS will provide quality services in core technical assistance areas through its pool of vetted consultants. EIS will also source new consultants to address specialty areas based on sectors, technology, and business type. EIS is part of the Service Facility for Blended Finance Pillar, which aims to enhance the impact of blended finance interventions in Cambodia.

Objective of Entrepreneur Investment Support Facility

The EIS platform aims to catalyze investment into Cambodia’s small and growing businesses (SGBs) by providing support through technical assistance. The facility will also contribute to bridging the funding gap, empowering the missing middle, enabling impact investors, and facilitating access to quality technical assistance.

Vision

At the Entrepreneur Investment Support Facility (EIS), the vision is to be the driving force in Cambodia's entrepreneurial landscape, filling the critical funding and capacity-building gaps faced by Small and Growing Businesses (SGBs). EIS  strives to empower SGBs with the necessary resources, support, and expertise they need to become investment-ready and unleash their true potential.

EIS in the making

2017
The idea for a technical assistance platform was sparked
The RISE Platform was born out of a USAID-sponsored co-creation workshop in Bangkok in 2017 where a collection of donors, investors, and implementers gathered to collaborate and generate new models that could support both social impact companies and investors in the region. The resulting initiative was managed by Swisscontact in Cambodia, Indonesia, the Philippines, and Vietnam.
2018
RISE commences operation 
In its first year of operation, the RISE platform successfully partnered with Uberis Capital and established connections with 43 entrepreneurial ecosystem intermediaries and investors. It also various financial model scenarios and received a number of applications from potential consultants. Moreover, it produced 11 operational guidelines and contracting templates and submitted three fundraising proposals.
2019
RISE platform expands 
In year 2 of its operation, the RISE platform successfully partnered with six other partners including Alterfin, AVPN, Insitor Partners, Phitrust, Nexus for Development, and Damson Capital, and also received 6 client companies. By year 2 the RISE platform provided TA worth $270,000.
2021
Successful in leveraging private capital and technical assistance for impact companies
The RISE platform successfully mobilized USD 3.2 million worth of private capital, generating a three times leverage ratio for USAID’s grant. Furthermore, the platform supported 20 impact companies to access 30 TA assignments which equate to over 8,043 hours of TA worth more than USD 359,000. 60% of RISE clients are also women-owned or women-benefitting companies.
2023
EIS piloted under the Enhancing Entrepreneurial Ecosystem and Investments (3Ei) initiative
The 3Ei initiative designed and developed the EIS platform as a brand, to take into consideration the lessons learned through the RISE platform, and to ensure that the facility will be functioning as intended even after the 3Ei initiative ends.