TheNextFund
Alternative SME financing built around the realities of African entrepreneurs
- Ticket size
- $50k to $250k
- Instrument
- SME aligned instrument
- Focus
- Early stage SMEs
About the fund
TheNextFund exists because the African SME financing gap is not a shortage of ambition, it is a shortage of instruments. Banks price risk they cannot read, and venture capital chases an outcome profile that most profitable African businesses will never fit. TheNextFund sits precisely in that missing middle.
We build capital around the realities of home grown entrepreneurs who are constructing ambitious solutions for their communities and far beyond them. Our structures respect cash flow seasonality, informal collateral, and the operating truth of trading in African markets.
Philanthropy led de risking absorbs the first layer of loss, technical assistance strengthens the enterprise, and commercial capital earns a disciplined, contracted return. Investors keep a very strong eye on realised returns while impact is measured with the same rigour as financial performance.
Fund highlights
- Blended finance stack with philanthropy led first loss
- Technical assistance embedded in every ticket
- Revenue based and mezzanine structures for overlooked founders
How the fund works
From sourcing to repayment, every stage is designed to protect capital while building the enterprise or asset behind it.
Ecosystem sourcing
Deals come from operator networks, accelerators and value chain partners we have worked inside for over a decade.
Diagnostic and structuring
We assess cash conversion, unit economics and governance, then design an instrument that fits the business rather than forcing the business into an instrument.
De risking layer
Philanthropic and catalytic capital takes first loss and funds guarantees, improving the risk adjusted profile for commercial investors.
Capital plus capability
Disbursement is paired with technical assistance in finance, operations, compliance and market access.
Repayment and reinvestment
Structured repayments recycle into the next cohort, compounding both returns and enterprise growth.
Impact donors
Catalytic giving that makes commercial capital possible.
TheNextFund only works because philanthropic capital sits underneath it. Donor funding absorbs first loss, pays for technical assistance and underwrites guarantees, turning every philanthropic dollar into multiples of enterprise financing for overlooked African entrepreneurs.
First loss capital
Philanthropic commitments sit at the bottom of TheNextFund capital stack, absorbing the first layer of loss so commercial investors can price African SME risk with confidence.
Technical assistance facility
Grant funding pays for the finance, governance, compliance and market access support that turns an informal enterprise into a bankable, investable business.
Guarantees and credit enhancement
Donor capital funds partial guarantees that unlock local bank lending, multiplying every philanthropic dollar several times over in enterprise financing.
Measured, recycled impact
Catalytic capital is not consumed once. Repayments recycle into new cohorts of entrepreneurs, with jobs, revenue growth and gender outcomes tracked as rigorously as financial performance.
Institutional donors
Foundations, development agencies and corporate philanthropies partnering on first loss, guarantees and technical assistance. Share your mandate and we will send the catalytic capital pack.
Retail donors
Give directly with your debit or credit card. Every contribution goes into the catalytic layer that de risks financing for African entrepreneurs.
Investor terms at a glance
Target net return
3.5X to 5.4X
Tenor
6 years
Minimum commitment
$5,000
Risk position
Senior to catalytic first loss