Funding brief: Convergence is currently accepting applications for our Design Funding grant program. They award feasibility study and proof of concept grant funding for practitioners to design catalytic blended finance vehicles that aim to attract private capital to global development at scale.
To date they have supported the design of more than 10 blended finance vehicles, including a Food Securities Food to provide working capital for climate-smart agricultural companies in Sub-Saharan Africa (Clarmondial), the world’s first healthcare development impact bond for maternal and newborn health in Rajasthan India (Palladium), financing facilities for clean energy and smallholder livelihood projects in Indonesia (ADM capital/ADM Capital Foundation), and a blue bond for conservation activities in Small Island Developing States (NatureVest/TNC).
Practitioners can apply for feasibility study or proof of concept funding:
● Feasibility study: Funding to explore the feasibility of the vehicle, particularly ability to attract private investors, as well as to develop the high level vehicle structure. The Open Window will award grants between USD 50,000 and USD 200,000 for feasibility studies. Promising feasibility studies funded through the Open Window will be considered for follow-on proof of concept funding.
● Proof of concept: If a feasibility study (or equivalent) has been completed, funding to complete all design and structuring activities – for example, finalizing the capital structure, establishing the legal structure, and producing key documents – in order to launch the vehicle. The Open Window will award grants between USD 200,000 and USD 750,000 for proof of concept work.
Donor Name: Convergence
Funding name: Design Funding for Catalytic Blended Finance Vehicles
Deadline: They have regular quarterly submission deadlines. The next deadline is 28 February, followed by 31st, May, 31st, August, and 30th, November.
Funding details link: Click to view
Funding limit: For feasibility study grants, we reward up to USD 200,000 and up to USD 750,000 for proof of concept grants.
Special Notes: Please contact with the donor directly for further clarification and understanding.
Project start date: Not found
Project duration: Not found
Eligible organization: As below
Eligibility: To be eligible for consideration, proposals must meet the following criteria:
● The vehicle must aim to use catalytic capital from public or philanthropic sources to attract private sector investment to emerging markets for global development impact.
● Practitioners can only use funding to design the blended finance vehicle – not for investment capital or to fund operational activities of an already established vehicle. See grant portfolio for examples of previous grants.
● Feasibility study proposals must 1) include an initial vehicle structure and hypothesis, and 2) have initiated engagement with potential funders and relevant stakeholders.
● Proof of concept proposals must 1) detail interest, and ideally commitment to participate, from funders and relevant stakeholders, and 2) include an initial financial model.
● The proposal must detail the development challenge, proposed blended finance vehicle, key risks and mitigation strategies, design activities and costs, and the applicant’s relevant experience.
● Proposals are only accepted from organizations or consortiums of organizations. The lead organization must be able to provide 1) proof of incorporation, and 2) audited financial statements for the previous fiscal year.
● Practitioners awarded funding are expected to regularly report key challenges, learnings, and results. This will be synthesized into a case study, and published to support market-wide learning.
Eligible Country: No country bar found (Open to all regions)
Submission mail: firstname.lastname@example.org
How to apply: Please read the following instructions carefully before submitting an application:
● Before drafting a proposal, practitioners must email email@example.com to schedule a brief call with the Convergence team to ensure alignment of objectives and mission. In the email, please include a brief overview of the proposed vehicle and attach relevant documentation (e.g., pitch deck, concept note).
● After speaking to the Convergence team, practitioners are encouraged to send a draft proposal to firstname.lastname@example.org at least two weeks before the quarterly submission deadline; Convergence will provide feedback on the draft proposal within five business days.
● Proposals must use the standard feasibility study or proof of concept template.
● Convergence will only consider one application per practitioner per quarter.
● Practitioners can access frequently asked questions here and submit additional questions to email@example.com. Convergence will respond within five business days.
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