After Vietnam, Beacon Fund Launches "Gender Lens Investing" in Indonesia

In a research conducted Investing in Women Last 2021, Gender Lens Investing (GLI) in Southeast Asia, especially countries such as Vietnam, the Philippines, and Indonesia, was able to have a positive and sustainable effect. Not only to the women entrepreneurs themselves, but to a sizeable contribution to the country.

A number of investors have started implementing GLI practices, but most local investors do not identify themselves as GLI investors.

GLI is said to have had a positive impact on the lives of women and girls, helped reduce gender inequality, and broadened access to finance for women entrepreneurs, which investors have yet to see. By funding women-led businesses, investors can address gender inequality while making a profit.

Seeing this opportunity, Beacon Fund supported by Patamar capital, launched impact funds which focuses on GLI in Southeast Asia. Starting in Vietnam, the Beacon Fund began to seriously explore investment opportunities among Indonesian women MSME entrepreneurs. Beacon Fund is led by CEO Shuyin Tang who is also a Partner of Patamar Capital.

Currently, apart from the Beacon Fund, local investors who are also focusing on GLI funding are Teja Ventures.

GLI perusahaan company category

Talking about GLI invites the Beacon Fund's perspective on what the company wants to be in its portfolio. To DailySocialBeacon Fund Investment Relations Manager Rong Hui Kan said that if the company was owned by women, this would be ideal. But in terms of the targeted business category, according to him, it doesn't have to be a company that provides special services for women.

Categories such as education and agriculture are of particular interest to the Beacon Fund. In particular they positioned themselves as private credit funds implementing to support small and growing businesses in Southeast Asia.

"Our relationship with Patamar Capital, which has focused on investing in startups that want to achieve unicorn status, has provided entrepreneurs with access to an extensive network, input, and relevant advice," said Rong Hui.

Unlike VCs that use equity-based funding schemes, the Beacon Fund provides funding in the form of loans. Women entrepreneurs or businesses who have a background in services for women and have had positive have the opportunity to get a loan from the company.

The Beacon Fund has allocated anywhere from $500 to $2 million to appropriate businesses. The company does not have a specific MSME business quota or target and has a target of building funding of up to $100 million for GLI.

"Unlike VCs in general, we are not closed end funds. In the end, we want the existing relationship to continue. When the business we have invested in has paid off the loan, then we will reinvest the money back into other MSME businesses," said Rong Hui.

debt funds

The magnitude of the potential to invest in MSME actors, which is currently still relatively low underserved be an opportunity that the Beacon Fund is exploring. Currently, there are still many MSME businesses that have difficulty getting investment from microfinance institutions.

Meanwhile, on a larger scale, those who want to get additional capital through banks or other financial institutions, usually find it difficult to get loans because they require collateral and strict requirements. To bridge the gap, the scheme debt funds The Beacon Fund is the ideal solution.

Women entrepreneurs are the ideal sector for the Vietnamese and Indonesian markets. The large contribution of women entrepreneurs among MSMEs makes a significant contribution to the state. Refer to the report Investing in Women, Indonesia, the Philippines and Vietnam accounted for 80% of the volume of GLI agreements in the Southeast Asia region; 85% of these deals come from private investors with schemes impact.

"There are various forms debt funding, starting from lending directly and so on. Interest rate Of course it will depend on financial impact metrics, said Rong Hui.

According to Rong Hui, the significant difference between conventional VC and Beacon Fund is an interesting differentiator. The focus of the Beacon fund is moderate growth companies, has profitable, and have positive ones.

To strengthen their managed funds, the Beacon Fund has received support from the Visa Foundation.

The businesses that the Beacon Fund has supported are two Vietnamese companies, namely Mind (a STEM-based education company) and Hoa Nang Organic (an agricultural company that grows organic rice).

"Currently we have not conducted a search and are still placing positions and awareness in the Indonesian market. We have website for those who want to submit a proposal and they can Apply to us at any time," said Rong Hui.