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If you are a not-for-profit organisation with DGR1 status and would like to consider applying for a Discovery Grant - here is all you need to know!
Discovery Grants do not fund:
The maximum grant amount is $50,000.
We invite charitable organisations with DGR Item 1 Status, unless indicated otherwise via specific sub-programs, who:
Preference will be given to eligible organisations which:
Eligible organisations which have an impact investing project – existing or about to commence – which requires capacity-building to ensure its success/de-risking may also be considered.
The Impact Investment Ready Discovery Grant provides grants to help not-for-profit organisations explore pathways towards financial sustainability and lay the foundation for future investment proposals.
WHAT CAN BE FUNDED
WHO CAN APPLY
THE PURPOSE OF THE DISCOVERY GRANT
The intent of the Growth Grants is to help enterprises with the greatest chances of success to secure capital investment. It has been designed based on global best practices and has incentives that help to achieve this outcome. We recognise that a significant level of responsibility sits with the providers to secure capital investment for the enterprise. Therefore, payment is split into two parts: 70% of the approved amount will be paid on approval of the grant, and the remaining 30% once the enterprise proves that it has secured the investment sought.
WHAT IS A PERFORMANCE-BASED PAYMENT STRUCTURE?
Grantees will have the unique opportunity to present to the Growth Grant investor circle Twentyfive*25 and explore the potential for support and funding with the members. Twentyfive*25 members include individual investors, family offices, trusts and foundations, and investment companies interested in financing mission-driven organisations. More details on the next roundtable are be provided in the application form. More information about Twentyfive*25 can be found here.
DOES IMPACT INVESTMENT READY FACILITATE ACCESS TO INVESTORS?
Growth Grants cannot be seen as a way to subsidise the due diligence for any provider that invests in the enterprise, while also performing the relevant capacity building work. The Growth Grant Panel requires full disclosure if the provider expects to take an equity component in the enterprise or a performance fee upon the successful capital raise. If the aggregated amount of the equity component and performance fee is greater than 10%, this will reflect unfavourably on the applicant, even though it will not automatically make them ineligible for a grant.
CAN PROVIDERS INVEST IN ENTERPRISES THEY PERFORM CAPACITY BUILDING WORK FOR?
The types of Providers vary for each applicant depending on the characteristics and needs of the business. A list of providers who have successfully secured a grant and investment with an enterprise are listed in the “Providers” section of the Impact Investment Ready Growth Grant website. Applicants can either connect to one of these Providers, or find an appropriate Provider themselves.
HOW DO ENTERPRISES FIND PROVIDERS?
Providers can be organisations or individuals that services like advisory, legal, financial, or intermediary services that help the applicant to become investment-ready. When a provider takes three enterprises from successful application through to investment they will be credited with a Gold Star provider rating. If a provider is successful in receiving grant funds through the enterprise they are working with and fails to secure investment for the enterprise on the agreed conditions two times, they will not be able to apply for further grant funding. This is to ensure that the quality and effectiveness of the services provided to enterprises will give them the best chance for success.
WHO CAN BE A PROVIDER?
Yes, enterprises can only apply for a grant partnership with a provider – without exception.
DOES THE APPLICANT ALREADY HAVE TO BE IN CONVERSATION WITH A PROVIDER?
Grant leverage refers to the ratio between the grant amount and the investment raised. For instance, if an enterprise receives a grant of $60,000 and raises $1,200,000 in equity and debt funding, the leverage is 20.During the Growth Grant's first 18 months of operation, grantees who have successfully secured capital achieved an average leverage of 24.
WHAT IS GRANT LEVERAGE?
All applications will be reviewed for completeness and key eligibility criteria. Those that meet the initial review will then proceed to the judging panel. The panel decides which applicants will be invited for an interview.After the interviews, the panel decides on approval or decline of the applications. Unsuccessful applicants who make it through to the panel interview will receive feedback and may be invited to apply in future rounds.
HOW DOES THE APPLICATION PROCESS WORK?
In general, Growth Grants are not repayable. However, the Panel reserves the right to provide grants under the condition of repayment upon achievement of defined performance thresholds. Under such condition, the repayment is to be considered as a mutual agreement between the Panel and the enterprise with the interest to maximise the ecosystem support of the Growth Grant funds, not an obligation. All further details are determined on a case by case basis.
ARE GROWTH GRANTS REPAYABLE?
Impact Investment Ready accelerates the impact investing ecosystem through support of mission-driven organisations with two grant programs. Growth Grants enable impact businesses to become investment-ready and grow, Discovery Grants support not-for-profit organisations that want to explore pathways towards financial sustainability.
WHAT IS IMPACT INVESTMENT READY?
Impact investments are investments that are intentionally made into organisations that deliver measureable social and/or environmental outcomes alongside financial returns.
WHAT IS AN IMPACT INVESTMENT?
EXAMPLES OF ACTIVITIES THAT CAN BE FUNDED
EXAMPLES OF ACTIVITIES THAT WILL NOT BE FUNDED
Impact investments are investments that are intentionally made into organisations that deliver measureable social and / or environmental outcomes alongside financial returns.
ARE DISCOVERY GRANTS REPAYABLE?
Discovery Grants are not repayable.
All applications will be reviewed for completeness and key eligibility criteria. Those that meet the initial review will then proceed to the Grant Committee.
The Grant Committee makes a final decision on the approval or rejection of the application.
While there are generally no interviews to evaluate applications, the Grant Committee may contact applicants in case of further questions.
Who We Are
Guidelines & FAQ
Level 13, 114 William Street
Melbourne Victoria 3000
Telephone: 1300 605 449 (tollfree)
The Impact Investment Ready Growth Grant is managed by:
Grant decisions are made by an independent expert panel:
Independent Advisor on Impact Investing
Good Shepherd Microfinance
National Australia Bank (NAB)
Impact Investing Australia