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Basics

Describe yourself briefly.

Shivani Siroya is Founder and CEO of InVenture (www.inventure.org). InVenture is a social enterprise that unleashes the potential of developing entrepreneurs to lift themselves and their communities out of poverty. InVenture's web-based platform directly connects developing entrepreneurs and individuals grow businesses and enact real social change. While working for UNFPA and The Earth Institute in India and West Africa, Shivani witnessed first hand micro-credit’s success in helping alleviate the struggle of subsistence living by helping clients begin new businesses with new sources of income. However, she also realized how micro-credit had done little to expand these businesses beyond sole proprietorships or lift entire communities out of poverty. Shivani wanted to find a way for successful micro-businesses to grow beyond these early stages, hire more employees and reinvest in the growth and well-being of their communities - this is how InVenture was founded. Prior to InVenture, she worked in investment banking at Health Net Inc. and Citigroup. Shivani holds an MPH in Health Economics and Policy from Columbia University and a BA in International Relations from Wesleyan University.

Describe your Unreasonable Venture in 100 words or less.

InVenture is a social enterprise with a mission to provide the capital, guidance and support needed to empower business owners to lift themselves and their communities out of poverty.

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Team

Describe your relevant experience (especially entrepreneurial).

While working as a consultant at the Earth Institute and UNFPA, I helped to evaluate and scale microfinance and public health. I surveyed hundreds of clients on their quality of life, spending habits and access health services. While working there, I witnessed first hand micro-credit’s success in helping alleviate the struggle of subsistence living by helping clients begin new businesses with new sources of income. However, I also realized how micro-credit had done little to expand these businesses beyond sole proprietorships or lift entire communities out of poverty. We needed to find a way for successful micro-businesses to grow beyond these early stages, hire more employees and reinvest in the growth and well-being of their communities.

Why is your team uniquely qualified to run this venture?

My professional background is in investment banking, public health and microfinance. My team is comprised of four individuals with diverse backgrounds in tech, online media, microfinance, international development, and finance. Additionally, our 6 advisory board members are experienced in managing and running NGOs, non-profits, mircrofinance and tech organizations.

We have created InVenture’s own business model to also be part of the solution - accessible, sustainable, transparent and responsive to all our varied stakeholders. To achieve its goals, InVenture has adopted a hybrid approach in which portions of operational processes have been privatized as the InVenture Capital Corporation (ICC), with remaining activities housed in the InVenture Foundation. This division cuts down on administrative overhead and increases InVenture’s overall efficiency, with 100% InVestments from online users going directly to micro-entrepreneurs. Furthermore, this structure also puts InVenture in the ideal position to scale both entities rapidly, reaching exponentially more communities than it could have as a single organization.

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Venture

What is the urgent social or environmental need you're addressing?

While micro-credit has helped alleviate the struggle of subsistence living for many budding entrepreneurs in developing countries, it does little to expand these businesses beyond sole proprietorships and create jobs within the community. While often the means by which the entrepreneur launched their venture, micro-lending’s high interest rates, rigid payback structure and lack of guidance prevents micro-businesses from growing. They find themselves suddenly trapped in the “missing middle”: the gap in financial services between micro-loans and the traditional banking sector.

What is your solution to this need? Describe your business strategy.

InVenture addresses the barriers to self-sufficiency and growth through its unique model by connecting emerging micro-entrepreneurs with financing through unsecured equity-like instruments, or “quasi-equity.” Through this model, InVenture bridges the gap between debt and venture capital by allowing online supporters (also known as “InVestors”) to achieve social and financial gains through profit sharing and principal repayment. This flexible financing allows micro-businesses to pay back funds as they grow, and affords micro-entrepreneurs the opportunity to break the micro-loan cycle.

InVenture also provides mentoring and hands on strategic guidance to help businesses grow holistically. Entrepreneurs also receive business development assistance to help formulate strategy and set viable targets for financial growth.

Lastly, InVenture requires all micro-entrepreneurs to re-invest a portion of their profit back into reproductive health, girls’ education and women’s vocational training initiatives in their communities. This re-investment is the catalyst for a positive feedback loop - growing a community through a business, while growing a business through a community.

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Milestones

Convince us it will work. What milestones have you achieved?

In the first half of 2010 InVenture operated three pilot funds in Mali, Ghana, and India and began our fourth in Mexico in August 2010. To date, our businesses have ranged from agricultural businesses to textiles to community clinics. Within this first year, these 36 entrepreneurs have all created jobs within their communities and moved beyond being sole proprietorships. Each business paid back its principal investment and met returns of 15% or higher. They also reinvested 5% of their revenue into social initiatives in their communities. In total these businesses have positively impacted their local communities by providing reproductive health services to 100 women in Mali, tuition for three young girls in Ghana, and vocational training for 20 women in India.

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