We make investments in Small and Medium Enterprises, focusing on several factors, including:

1. Geography

• Company based in developing/emerging market country

2. Market Attractiveness

• Demonstrated product-market fit
• Large addressable market size with unmet customer needs
• Significant competitive advantage (Porter’s Five Forces)

3. Business Model

• Financial viability and scalability
• Defensibility of products (e.g., IP) and competitive advantage
• Legal risks mitigated by industry knowledge and legal advisory

4. Management Team

• Appropriate backgrounds given the business model – why are they the right person to grow the business?
• Engaged founders and other leadership
• Clear communication and responsiveness
• High interest in partnering with IIF for the length of the investment horizon
• Who are the current shareholders?

5. Investment Size & Type

• Investment sizes vary but there must be a clear, strategic use of investment funds
• Equity-like vehicles that capture value from company growth
• Long-term focused investments to build trust with entrepreneurial ecosystem

6. Exit Potential

• Reasonable and feasible potential exit strategies
• Founders’ appetite to give investors a strong ROI through a liquidation event
• Time horizon dependent on the type of investment, and the best interests of the fund, partners, and entrepreneurs

7. Environmental, Social, and Governance Guidelines

• IIF will follow the guidelines of the University of Michigan’s Endowment when it comes to ESG guidelines