WUNRN
THE GIRL EFFECT ACCELERATOR
http://girleffectaccelerator.com/
The Nike Foundation (co-founders of the Girl Effect) and Unreasonable Group have
partnered on an intensive two-week program for entrepreneurs leading wildly
innovative startups that are positioned to benefit millions of girls in
poverty: we are calling it the “Girl Effect Accelerator.” The Girl Effect
Accelerator launched our inaugural program in November 2014. We connected 10 select ventures with world-class mentors,
strategic financing and access to a global network of support. The accelerator
aims to rapidly increase the positive impact these ventures already have for
girls living in poverty. We also welcomed 3 entrepreneurs in
residence to join the program in an effort to help take their
efforts to scale.
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http://www.ssireview.org/blog/entry/the_gender_accelerator
The Gender Accelerator
Are startup accelerators the future for
women and girls?
It costs only $25 per woman per year to save
millions of lives, according to a recent UN-backed report by the
Guttmacher Institute on reproductive health services in developing
countries. The research shows that the low cost needed to cover contraception
services, pregnancy and newborn care, and HIV care to prevent mother-to-child
transmission would significantly reduce maternal and newborn deaths. Unfortunately,
current funding levels for these services—$18 billion annually—cover less than
half of the amount needed to make that a reality.
The funding gap for women and girls worldwide
is hardly new. World Bank research shows that only two cents of every dollar in
international aid funding goes to support programs for girls. In 2010, women’s
and girls’ rights organizations around the world had a combined income of $106
million, while Greenpeace made $309 million the same year—nearly three times as
much.
This is despite the fact that women and girls
are one of the most marginalized groups on Earth, and have the most potential
to produce economic growth. When working, women invest 90 percent of their
income back into their families (compared to men, who invest only 30-40
percent), creating a “multiplier effect” that boosts social and economic
outcomes for their communities. For every year that a girl is in school, her
future income level increases, as does the country’s GDP. The numbers don’t
lie: There’s a clear return on investment when we put women’s and girls’ lives
at the forefront.
These findings have led to a growing number
of startups focused on supporting women and girls. Women’s organizations are
also increasingly making a shift in their fundraising habits—from seeking
foundation funding to generating revenue. A 2010 study of 1,100 women’s
organizations from 140 different countries found that one-third relied on
income-generating activities as their primary source of support.
Propeller, Echoing Green, and many other
institutions have been supporting social entrepreneurs for decades, offering
fellowships, training programs, seed funding, and resources. But there has
never been an accelerator that focuses solely on initiatives supporting women
and girls—until now.
Last month, The Girl Effect Accelerator
hosted a 2-week-long program to help 10 organizations fulfill their mission of
advancing the lives of girls living in poverty. Backed by the Nike Foundation
and the Unreasonable Group, the accelerator provided high-profile mentors,
strategic financing, and network partners to promising social enterprises.
Ventures included Embrace, which makes infant warmers for premature infants
that cost less than 1 percent of the average incubator, and Jayashree
Industries, which distributes affordable sanitary pads via 1,500-plus women-led
franchises across India. Each company provides different services, but all
improve the lives of women and girls.
Programs like this one seem like a move in
the right direction—but are impact accelerators actually effective? A report by
the Aspen Network of Development Entrepreneurs (ANDE) and Village Capital found
that only 31 percent of companies that “graduated” from impact accelerators
were profitable and/or received a major investment. Meanwhile, a more recent
report shows that companies that have taken part in an accelerator
program have notably higher revenue generation than those that haven’t.
Other research
shows that the general lack of partnerships between impact accelerators and
investors leaves a huge opportunity gap for entrepreneurs. The good news is
that some accelerators are wising up: A case study on a collaboration between
Agora Partnerships and Eleos Foundation to support women-run companies in Latin
America, for example, found that when Agora’s impact accelerator prepared Emily
Stone of Maya Mountain Cacao to meet Eleos’ specific criteria for investment,
the company was able to attract 20 investors and raise $200,000 through the
foundation.
Of course, aside from raising capital, there
is the question of impact. Kristin Gilliss
of the Mulago Foundation warns that impact accelerators have made
the mistake of strictly following the business models of tech startup
accelerators without taking into account the importance of measuring and
scaling actual impact.
Startups supporting women and girls also have
their own unique challenges—unlike an analytics software company, for example,
they must incorporate the voices and perspectives of the community they’re
serving. How can accelerators take these needs into account when creating their
programs?
The Girl Effect Accelerator seems to be
cognizant of the newness of this kind of initiative, framing itself as a “learning
organization.” It will likely make improvements—perhaps by developing more
strategic partnerships with investors —but the team is confident about measuring
the impact of investment growth and revenue generation, as well as the impact
that each venture has on girls in poverty, through tracking one core metric
unique to each company.
While we have a lot of learning to do about
women’s and girls’ needs, this is an exciting first step, and we believe that
impact accelerators could be a game-changer when it comes to improving the
lives of women and girls worldwide. We hope other accelerators see the benefit
and follow suit to support the thousands of other initiatives targeting this
issue across the globe.