Innovative Startups Fund Project

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The objective of the Innovative Startups Fund Project for Jordan is to increase private early stage equity finance for innovative small and medium enterprises (‘SMEs’). There are three components to the project, the first component being equity/quasi equity financing program. Under this activity, the ISSF is expected to invest US$50 million in approximately 200 companies plus US$3.5 million to be provided as investment support to partner investors. Investments will be opportunistic across all sectors (sector agnostic). However, it is expected that investments will be primarily in technology, media, telecom and service sectors with some in agribusiness, pharmaceuticals, water, and green energy. Investments will not involve real estate, construction, or heavy manufacturing. The second component is the deal flow creation support. The quality and number of viable investments made by the ISSF will depend on a strong ecosystem able to generate entrepreneurship opportunity across Jordan and channel it into more viable startups. This includes programs that include outreach to entrepreneurs from lagging regions, underserved industries (other than ICT), and underserved groups like women entrepreneurs. Finally, the third component is the project management, coordination and monitoring and evaluation. Funds under this activity will cover the ISSF project management costs over the project life. The ISSF will be the de facto Project Implementation Unit (PIU). Costs of the ISSF include management and consultancy fees and operations and administrative costs for the management and supervision of the project investment and deal flow activities. Project funds will also support the ISSF’s costs for the following: training and capacity building activities; marketing; conducting ecosystem assessments and analysis; setting up a coordination mechanism among related national and international programs; outreach specifically to the regions (website, conferences); citizen engagement activities; monitoring and evaluation (M&E); safeguards monitoring and review; legal; accounting, auditing, and financial management.