Rio de Janeiro, May 3, 2022 – SITAWI Finanças do Bem, through its Collective Loan Platform, launches new business investment opportunities that generate a positive socio-environmental impact. This will be the first investment round of the year and includes three impact businesses. with the support of Platform
Partners for the Amazon (PPA), the opportunities to invest in impact businesses in the Amazon are aimed at raising R$100 thousand for the agroextractivist cooperative Sementes do Marajó and R$50 thousand for AMADEU – Amazonian Materials & Design United – sustainable materials agency for the Amazon Forest. The third investment opportunity, made possible by SITAWI in partnership with Sabin Institute, aims to capture R$500
thousand for Stattus4, a technology startup engaged in building Smart Cities and Sustainability.
The organizations Sementes do Marajó and AMADEU were selected through the Call for Impact Business, held in December 2021, and underwent several stages of impact analysis by the SITAWI team so that, through resources, they can continue to positively impact people and the environment. environment. Based in Curralinho, Pará, Cooperativa Sementes do Marajó has generated, through the collection and commercialization of açaí,
income for 103 members – extractivists from riverside families – and aims to increase the purchase and sale of açaí during harvest periods. A pioneer in the use of Amazonian rubber for the production of sustainable fashion and design articles, AMADEU has a history of research and commercialization of materials, with a focus on preserving the forest and generating employment, income and training for extractive families (already having reached around 100 families from 18 rubber tapping communities). With the loan, it aims to expand production through raw materials, equipment and international marketing.
Stattus4 is capturing for the second time through the Platform. The startup develops solutions through Artificial Intelligence to more accurately detect leaks in water and gas systems in cities, in order to diagnose and avoid points of waste of resources and promote improvements in supply. With the new financing, the company aims to increase cash flow to streamline its operations and expand its innovative technology.
Together, the three businesses contribute to 9 of the 17 Development Goals
Sustainable Development (SDG) of the UN.
Blended Finance and the democratization of impact investing
Through the format of "Blended Finance” (or hybrid finance), SITAWI has developed financial mechanisms to make impact investing more attractive to both the investor and impact entrepreneur. Thus, the Collective Loan Platform has advantages in a two-way street, since it offers the entrepreneur better interest conditions compared to traditional loan models available on the market and, at the same time, due to the multi-investor format and the ticket accessible, expands the participation of individuals, with profitability linked to a positive impact.
In addition, SITAWI combines fundraising with a process of technical consultancy and monitoring of organizations throughout the loan period, in addition to presenting entrepreneurs with a vast network that can further support their development.
Criteria for selecting and evaluating impact businesses
SITAWI selects formalized businesses as legal entities that generate a clear and proven positive socio-environmental impact. The economic viability and repayment capacity of organizations are analyzed. With the easing of the Covid-19 pandemic at the national level, it was possible to resume technical visits by the team of
SITAWI, a fundamental process to facilitate the evaluation of criteria such as team, leadership, execution capacity, market and business model.
According to Aline Decarli, Impact Investment Coordinator at SITAWI, field visits are essential for the SITAWI team to get to know the most diverse local realities and also the challenges faced by each entrepreneur. “Knowing the local reality is essential to understand the organization in depth, strengthen ties with the leadership and bring SITAWI closer to the work that will be developed in the future”, comments Aline.
In terms of impact, SITAWI studies both the extent (how many people will benefit) and the depth of the impact (to what extent this initiative changes the lives of these people). The assessment also includes interviews with founders, employees, customers and beneficiaries, complementing the analysis of the evidence.
"During the due diligence, a stage of in-depth analysis of organizations that precedes fundraising on the Platform, we evaluated three main pillars: finance, governance and impact. During field visits, we sought evidence of everything that was remotely identified in the three months of analysis, evaluating the organization's performance in the priority axes used to recommend or not the investments", explains Maria Laura Florido, Impact Investment Coordinator at SITAWI .
Impact business in the Amazon
Through impact investing, SITAWI has been working to increase capital mobilization for entrepreneurs who contribute to local development and the generation of positive socio-environmental impact in the Amazon, in partnership with the PPA. Through thematic investment rounds for the region, the Platform has already supported 11 impact businesses that value the economy of the forest — generating biodiversity conservation, income for their communities and preserving local culture.
They are: COEX, Nakau, Tucum, OKA, Pratika, Luisa Abram, Comaru, 100% Amazônia, Tobasa, Cofruta and Coopavan.
How to invest
To participate, the person interested in investing must register and then choose the business(es) of interest on the SITAWI Collective Loan Platform. The person makes the investment reservation and, to confirm, must perform a TED or generate a payment slip for the investment. After the funding is completed, loan agreements are issued between the parties and the investor receives the title called 3CB (Bank Credit Certificate), which proves the investment.
After an initial 3-month grace period, investors receive the investment amount for 36 months, with the payment of monthly installments referring to principal plus interest.
Do you want to know more about how to invest in the positive impact through the Platform? Click here