People are starving, food is rotting and farmers are mired in poverty. There is a lack of food storage, processing, preservation and distribution usually provided by businesses in the agriculture-to-food value chain. There is a flood of food at the end of the harvest. These value chain businesses are missing because there is not investment capital to create them. Nor is there a way to insure effective use of the investment. Until now.

Even in a mature economy like the United States, small businesses of 5-500 employees provide 51% of the private workforce, create 75% of the new jobs, and generates 93% of the inventions. They are the innovation engine that drives the economy. Small businesses like this are in shortage in the developing world.

Our program addresses the “Missing Middle”, that area of capitalization between microfinance and venture capital. Studies show that the lack of capital in this area is the primary cause for the lack of small and medium sized businesses in the developing world – the businesses that drive an economy. 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 there is more money available than businesses to receive it. Truly this is the Missing Middle. Our investments will range in size from $5,000 to $500,000.

We call our innovative model “micro venture capital”. It brings down the cost (and thus the possible investment size) of venture capital through innovative partnerships with local universities. It uses some of the principles of microfinance, which has demonstrated worldwide that the poor are a better credit risk than the rich.

In the developed world we say it is better to teach a person to fish than to give fish. But our actions betray us. It’s actually not what we usually do. It’s time to stop calling for more aid and start acting to make a difference.

Cheetah Development’s model is part of a holistic development perspective that Cheetah has identified as the Integrated Development Equation (IDEQ). This model identifies a process for economic development in undeveloped regions in a way that leads to sustainable solutions and increases the impact of traditional aid approaches.