DFC can provide direct equity investments into companies or projects that will advance economic development or U.S. foreign policy. Equity investments are an important tool for supporting early- and growth-stage companies that would otherwise not be able to take on debt.
Direct equity provides DFC with greater flexibility to invest in early- and growth-stage companies, partner with other financial institutions, and enable investees to scale operations more efficiently.
DFC's ability to make direct equity investments will allow it to play a catalytic role in mobilizing private sector capital.
Evaluation Criteria
Evaluation of prospective applicants considers the following criteria:
- Real revenue and demonstrated product market fit
- High growth with strong business model fundamentals
- Large commercial market with potential for scale
- Growth-stage companies with plausible exit routes
- Experienced management team
- Investments with like-minded DFIs, strategics, and/or private equity or venture capital firms
- Sound legal structures and appropriate governance