FCRA PROJECT: THE GLOBAL INNOVATION FUND

The Global Innovation Fund has three stages of Financing–Pilot, Test & Transition and Scaling Up.

Pilot

At the Pilot stage, GIF provides seed capital to support the start up and field-testing of innovations. The goal of this stage is to refine the basic concept or business model and establish the viability of an innovation at a small scale through testing in real world contexts.

Pilot stage could include

Research and development

Introducing an innovation to target customers

Assessing user demand and willingness to pay

Documenting social outcomes and costs of spreading the innovation

Test & Transition

At the Test & Transition stage, GIF funds innovations that have already demonstrated success at a small scale. This stage is for innovators who require support for continued growth and for assessing the likelihood that the innovation can achieve social impact and/or market viability at a larger scale. The innovators may require funding to test new business models or to make operational refinements. This stage typically includes rigorous testing of social impact and cost-effectiveness, often through randomized experiments for solutions that will require significant public resources to transition to scale. Funds can also be used to build paths to sustainability and scale.

Scaling Up

At the Scaling Up stage, GIF supports the expansion of innovations that have already demonstrated a strong track record of social impact and effectiveness. The Scaling Up Fund helps innovators transition successful approaches to a large scale, usually with the goal of eventually achieving widespread adoption throughout one or more developing countries.

Scaling Up Activities could include

1. Addressing operational challenges for scaling up

2. Working with partners who will help scale the project beyond GIF support (e.g. investors, existing large commercial firms, developing country governments, etc.)

3. Adapting and expanding innovations to different contexts/geographies

4. Assessing ways to drive cost-effectiveness as the scale continues to increase

Following are the criteria to acquire the Global Innovation Fund and make your proposed solution to major global problem a success:

The innovations should benefit people living on less than the equivalent of $5 per day (PPP) in developing countries, especially the people living on less than $2 per day (PPP).

* Innovations that benefit vulnerable groups such as women and girls, the disabled, minority or indigenous groups, refugees or displaced communities, or other vulnerable populations are also eligible.

* Innovations should have potential to achieve significantly better results for lower cost than existing solutions.

* Proposal should clearly state what the problem is, how it affects poor and vulnerable groups in developing countries, and how the proposed innovation provides a solution.

* The proposed project must have an implementation approach that is well designed, and reflect a clear understanding of existing efforts to address similar problems and the barriers to success.

* Applicants must have relevant expertise and capabilities to achieve success, with clear roles, responsibilities, and time commitments needed to be successful.

* Applying teams must demonstrate the ability to identify and respond to risks and changes that are likely to arise as growth is achieved.

* Applicants must have the ability to engage effectively with partners in government, private sector, and/or community leaders.

* At the Pilot stage, applicants must provide evidence of promising ideas and capable teams.

* At the Test & Transition stage, innovations should have already demonstrated some initial evidence of success through early pilot-testing. During this stage, innovation teams should propose an appropriate strategy to track and rigorously assess social impacts, cost-effectiveness, and/or commercial viability if relevant. All teams should have clear understanding about specific partners, team member capabilities, or other requirements that will be needed to bring the innovation to larger scale, with plans for attracting other sources of financing or support from partners as needed.

* At the Scaling Up stage, innovations should have already demonstrated clear evidence of their effectiveness and potential. The innovation team should be taking clear steps to build management and operational capacity, partnerships, and financial support as needed to drive the innovation toward sustainability and scale. There should also be a commitment to continued monitoring of social outcomes and implementation costs to ensure ongoing learning and improvement.

* For innovations with scaling up pathways that require sustained long-term public or philanthropic support, rigorous evidence of social impact and cost-effectiveness relative to alternative approaches is required at this stage.

* Innovations scaling up through commercialization should be able to demonstrate that their innovation has passed a market test, meaning that revenues exceed costs and/or the innovation has attracted further growth capital from the market.