The global financing landscape for startups and SMEs in emerging markets presents both opportunities and challenges. Traditional bank financing is often inadequate, while private funding typically focuses on classic equity deals, which don’t always meet the unique needs of these enterprises. Due to their diverse structures and growth stages, startups and SMEs require a broader range of financing options to promote economic growth, particularly in development cooperation.
This paper explores alternative financing methods, such as Corporate Venture Capital (CVC), Venture Studios, Venture Debt, Web3.0-based financing through DAOs, and Carbon Credit-based financing. These options are especially relevant for emerging markets, with a focus on the African ecosystem, though applicable more broadly. The paper aims to equip entrepreneurs and development practitioners with insights into these alternatives to help startups and SMEs overcome financial barriers, secure funding, and contribute to economic and social development.
This document has been developed by Scio Network, in cooperation with GreenTec Capital, as part of the Private Adaptation Finance project and WE4F, implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Federal Ministry for Economic Cooperation and Development, which aims to mobilize investment in private sector solutions for climate change adaptation. The project supports the supply and demand side of capital for climate change adaptation & resilience investment in a holistic approach that includes ecosystem building and peer-learning, and connects the global debate to the local context and stakeholder scene.
For more information please contact denise.engel@giz.de or visit www.adaptationcommunity.net/private-sector-adaptation