Cheetah Development | Missing Middle

Missing Middle

It takes money to make money

And Sub-Saharan Africa has received more than a trillion dollars in aid in the last 50 years. So why has it failed to develop faster? In a way it is an odd question, because very little of the money went to economic development.

In a major study done by the German Marshall Fund (Transatlantic Innovations in Affordable Capital for Small- and Medium-Sized Enterprises) it is pointed out the small businesses lack the funding to succeed: “The Missing Middle”. Although they may face all of the problems endemic to the developing world, including: lack of infrastructure, red tape, corruption, etc., it is the lack of capital that prevents their development.

Our program addresses this “Missing Middle”, that area of capitalization between microfinance and venture capital. We believe that we are one of only two organizations in the world focused on this space. Contrast that with microfinance where there are several thousands and with traditional VCs where studies show that generally there is more money available than businesses to receive it. Truly this is the Missing Middle. This is where the need is greatest. Therefore, our investments will range in size from $5,000 to $500,000.

Learn more? Go to Micro Venture Capital. See also Micro Venture Capital - Financing the Middle (pdf)

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