Sarona Risk Capital Fund

In 1953 MEDA was established as a venture capital fund to invest in businesses operated by and for the benefit of the poor. The capital provided by MEDA members was to be repaid to MEDA for use in other similar projects. MEDA’s first investment was in the Sarona dairy in Paraguay. That investment was repaid in full in 1972.

There is a key stage in a business life when it needs high risk capital to give it the chance to prove itself, attract other capital, and begin to move to profitability. The Sarona Risk Capital Fund is set up to provide that need. Sarona has already contributed to the success of many business, funds, and microfinance institutions (MFIs).

Results to Date:
MEDA's Sarona Risk Capital Fund was instrumental in the beginning of MicroVest, now a 20 million USD fund to provide capital to microfinance institutions globally. Sarona was also instrumental in investing in CAPA and MiCredito (MFIs in Romania and Nicaragua), as well as Codip, a starch plant in Paraguay. Because of these “first in” risky investments, these institutions are impacting over 500,000 clients and farmers.

---

One of 500,000 stories from Sarona Risk Capital Fund

Candida Rosa Huerta is a 44 year old single parent who is full of energy and never seems to stop working. She and her 12 year old daughter, Rosita, have a hectic daily schedule. Every day Candida goes to market and hosts a small diner in her humble living room. She has 28 daily customers that are fed a delicious homemade lunch. In her spare time she walks her dusty neighborhood streets selling apparels and cosmetics. Besides going to school, cleaning the house and washing dishes Rosita sells home made enchiladas and popsicles.

Candida's first loan was a $230 loan through MiCredito in order to increase her working capital. The second loan ($230) enabled her to increase her inventory by purchasing a variety of brand clothing. She states “MiCredito’s loans have given me financial independence and stability.”

She hopes that in the near future she will be able to improve her housing conditions. She believes that she must first invest in her small business “due to the fact that it will provide enough monies to build a better, comfortable home for Rosita and me”.

---

If you would like to donate to the Sarona Risk Capital Fund, click here.