MICROCAPITAL BRIEF: Global Innovation Fund (GIF) Receives $200m from Omidyar Network; Governments of Australia, Sweden, UK, US

The Global Innovation Fund (GIF), a UK-based nonprofit, recently announced its launch in the US city of New York. GIF plans to fund “social innovations” brought forward by nonprofit entities as well as for-profit organizations and government. GIF will consider ideas from any sector and any part of the world.

GIF has received approximately USD 200 million from its investors, which include the US Agency for International Development (AID), a government agency that provides international economic and humanitarian assistance; the Omidyar Network, a US-based investment firm; the Swedish International Development Cooperation Agency (SIDA), a unit of the Swedish Ministry for Foreign Affairs; the UK’s Department of International Development (DFID); and Australia’s Department for Foreign Affairs and Trade (DFAT).

While examples of the types of projects to be funded have not been released, Omidyar Network has previously funded efforts for government transparency, financial inclusion, education, property rights, market building, early innovation, and consumer internet. GIF has stated that it will not fund religious activities, scientific research, expansion of private businesses without potential for a social impact, projects that will not impact large enough groups of people and development projects that are traditional in nature such as building a school or drilling a well.

By Ananya Tiwari, Research Associate

About United States Agency for International Development (USAID)

The United States Agency for International Development (USAID) is a government agency that provides international economic and humanitarian assistance. It focuses on areas such as economic growth, agriculture, trade, health, democracy, conflict prevention and humanitarian assistance. Under the Development Credit Authority (DCA), it provides credit guarantees that cover up to 50 percent of defaults on wholesale loans made by private financial institutions to institutions that lend on a retail basis to under-served borrowers. USAID had a total of USD 60.6 billion in budgetary resources in 2013.

About Omidyar Network

Founded in the US in 2004, Omidyar Network is a firm that provides investments and grants to “socially responsible” organizations in the areas of microfinance, entrepreneurship, property rights, social media, marketplaces and government transparency. Omidyar seeks to invest in organizations that “have potential for large-scale impact, have proven leadership, and exemplify innovation.” As of December 2013, Omidyar Network reported total assets of USD 413 million.

[1] Global Innovation Fund, http://www.globalinnovation. fund/

[2] The Global Innovation Fund: Pilot, Test, Scale,http://www.omidyar.com/blog/ global-innovation-fund-pilot- test-scale

MicroCapital, June 13, 2014: “MicroEnsure Raises $10m in Equity from International Finance Corporation, Omidyar Network, Opportunity International, Telenor Group; First-Time Investors AXA, Sanlam Emerging Markets”https://www.microcapital.org/ microcapital-brief- microensure-raises-10m-in- equity-from-international- finance-corporation-omidyar- network-opportunity- international-telenor-group- first-time-investors-axa- sanlam-emerging-marke/

MicroCapital, June 10, 2014: “Elevar Equity, Omidyar Network, Saama Capital, WestBridge Capital Invest $27m in Equity in India’s Vistaar Finance for Lending to Micro-, Small, Medium-sized Enterprises (MSMEs)”https://www.microcapital.org/ microcapital-brief-elevar- equity-omidyar-network-saama- capital-westbridge-capital- invest-27m-in-equity-in- indias-vistaar-finance-for- lending-to-micro-small-medium- sized-enterprises-msmes/

MicroCapital, December 20, 2013: “US Agency for International Development (USAID), NetHope Announce 3 Grants Totaling $42k to Support Electronic, Mobile Payments”
https://www.microcapital.org/ microcapital-brief-us-agency- for-international-development- usaid-nethope-announce-3- grants-totaling-42k-to- support-electronic-mobile- payments/

MicroCapital, June 5, 2013: “Tigo Ghana, EB Accion, Cherie Blair Foundation for Women, USAID to Help Women Become Mobile Money Agents,”http://www. microcapital.org/microcapital- brief-tigo-ghana-eb-accion- cherie-blair-foundation-for- women-usaid-to-help-women- become-mobile-money-agents/

MicroCapital, March 7, 2013: “Overseas Private Investment Corporation (OPIC), US Agency for International Development (USAID) Commit $23m to Development Innovations Group (DIG) Housing Finance Facility in Haiti,”https://www.microcapital.org/ microcapital-brief-overseas- private-investment- corporation-opic-us-agency- for-international-development- usaid-commit-23m-to- development-innovations-group- dig-housing-finance-facility- in-haiti/

MicroCapital Universe Profile: United States Agency for International Development (USAID):http://www. microcapital.org/ microfinanceuniverse/tiki- index.php?page=United+States+ Agency+for+International+ Development+%28U

MicroCapital Universe Profile: Omidyar Network https://www.microcapital.org/ microfinanceuniverse/tiki- index.php?page=Omidyar+Network

MicroCapital Universe Profile: Global Innovation Fund https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Global+Innovation+Fund+%28GIF%29

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