Summary

Launched
2009
Estimated duration
4 Years
Estimated total value
$520,000
Locations
ARGENTINA; BRAZIL; CHILE; COLOMBIA; EGYPT; GREECE; INDONESIA; JORDAN; LEBANON; MEXICO
Partners
Endeavor Global

The Endeavor Mentor Capital Program

Approach

Endeavor commits to assist Endeavor Entrepreneurs prepare for and raise equity capital. Through the Mentor Capital Program, Endeavor, together with its partners, will develop content and a curriculum for a select group of entrepreneurs ready to raise equity capital. The first pilot will be launched in Latin America in December 2009, followed by South Africa in February and Brazil in April of 2010.
The MCP will educate Endeavor Entrepreneurs on the fundraising process and provide mentorship through a simulated due diligence process. Those who successfully complete the four month program, which includes three simulated due-diligence conference calls with local and US venture capitalists, topic specific workshops and webinars related to financing, will have the opportunity to pitch to top investors and receive ongoing advice and support. By educating the entrepreneurs and investors on how to align interests to maximize growth and profit, Endeavor can contribute to a more efficient and complimentary entrepreneurial and investment ecosystem.
Endeavor is piloting this program with two entrepreneurs from Argentina, two from Chile, and two from Uruguay. They will select 6-8 entrepreneurs in South Africa and 6-8 in Brazil to complete the program by the first quarter of next year. Each entrepreneur will receive close to 30 hours of mentoring over the course of the program in addition to unparalleled access to resources and introductions relating to raising equity capital. The cost for preparing and delivering this level of customized services to each entrepreneur is roughly ,000. Endeavor will see a return on this investment if entrepreneurs receive equity capital as a direct result of the program. However, success will also be defined over the long run, by the development and professionalization of early stage equity markets in Endeavor countries which can have a profound impact on the entrepreneurial environment.
Endeavor will identify a small group of leading US-based venture investors to pioneer this initiative as Founding Mentor Capitalists. The investors’ will:
– Mentor Endeavor Entrepreneurs on the general process of raising equity capital, through a series of structured conference calls (4 per class).
– Interact, exchange ideas, and build relationships with local (emerging market) investors through these same conference calls.
– Support the development of the program with investors’ feedback, advice, and financial support.

Background

Endeavor will be the catalyzing agent that develops entrepreneurial ecosystems in emerging markets. It is convening the necessary actors to create the next Silicon Valley in Cairo or Bogota. And just as Silicon Valley is more than tech-entrepreneurs and venture capitalists, the ‘Endeavor effect’ goes far beyond serving the few high-impact entrepreneurs selected. High-Impact Entrepreneurs are the agents that stimulate economic and cultural transformation.
Endeavor has long focused on supporting High-Impact Entrepreneurs in emerging markets through a variety of programs designed to help them scale and professionalize. Endeavor starts by conducting a rigorous, far-reaching search process and then selects only those entrepreneurs with high-impact potential. Endeavor then provides these entrepreneurs with specialized services from a network of local and international business leaders, who serve as mentors, advisers, connectors, investors and role models. Engaging the private sector in mentoring the most promising-yet-undiscovered entrepreneurs in emerging markets is a pioneering aspect of Endeavor’s ‘Venture Catalyst’ model.
As businesses grow, providing new services that address each stage of growth is crucial to maximizing the economic development impact of these entrepreneurs. This year, raising equity capital is a top priority for 30 percent of Endeavor Entrepreneurs. However, the early and growth stage equity markets in nearly all Endeavor country are ill equiped to favorably support the needs of high growth entrepreneurs.
Through the MCP, Endeavor Entrepreneurs aim to raise million in equity investments.

Progress Update

April 2013
The Mentor Capital Program has met targets and since expanded to a three-step program for Endeavor Entrepreneurs raising equity capital. In 24 months, Endeavor has helped 60 companies raise over $240M in equity capital.The first step is the Mentor Capital Program.
Once an Endeavor Entrepreneur identifies an interest in raising equity capital, Endeavor Global staff works closely with entrepreneurs on their plans and ‘pitch deck’ presentations for investors. Endeavor then matches each Endeavor Entrepreneur up with an experienced US investor as a Global Mentor who can provide mentorship and feedback on this presentation through a simulated investor pitch & due diligence process, typically a set of phone calls and/or in-person meetings. Endeavor Entrepreneurs can also count on their Global Mentor to support them with feedback and advice as they advance in the fundraising process.The second step is the Investor Network.
Once ready, Endeavor can provide introductions and connections for Endeavor Entrepreneurs to leading investors via the Endeavor Investor Network – the premier global network of Venture Capitalist investors focused on emerging markets, including leading investors in the US, Europe, and emerging markets.Opportunities to connect with investors include Investor Network events – held 2-3 times per year around the world – as well as customized individual introductions. Participating firms include Accel Partners, Redpoint Ventures, General Atlantic, Draper Fisher Jurvetson (DFJ) and over 30 more..
The third step is the Endeavor Catalyst program.For Endeavor Entrepreneurs raising equity rounds of USD $5 million dollars or more, the newly launched Endeavor Catalyst program – a passive co-investment vehicle that uses philanthropic capital to co-invest in Endeavor Entrepreneurs’ companies – offers a unique opportunity to have Endeavor participate in an investment round. Proceeds from the program return to Endeavor to support future entrepreneurs.As of June 2011, 16 entrepreneurs, 31 mentor capitalists, and 81 investors have participated in the MCP program, and in the past year, they have held six events.

Partnership Opportunities

SEEKING: financial resources, implementing partners, best practice information, media/marketing opportunities
OFFERING: best practice information, media/marketing opportunities.

NOTE: This Clinton Global Initiative (CGI) Commitment to Action is made, implemented, and tracked by the partners listed. CGI is a program dedicated forging new partnerships, providing technical support, and elevating compelling models with potential to scale. CGI does not directly fund or implement these projects.