مشارکت آگورا نیکاراگوئه: سرمایه گذاری صندوق سرمایه خرد

Agora Partnerships is a micro venture capital fund founded by Benjamin Powell in the US and Ricardo T. Teran in Nicaragua. Agora started operations in 2005 with the goal of identifying and supporting entrepreneurs and business plans with high potential for success. The fund faces some unique challenges. First, the size of the businesses that is investing in does not allow for a traditional “management fee” structure. Secondly, traditional investment exits are nearly impossible in Nicaragua. This teaching case includes analysis on sources of investment capital, deal structures, and expected returns. The unresolved dilemma remains how to structure an investment proposal attractive to both investors and entrepreneurs. The case also allows discussing how to adapt the venture capital model to an emerging country like Nicaragua.

Agora's managing partners know that the upcoming Investment Committee meeting is particularly important for the organization's future development. They have to provide arguments to the Committee members that can convince them that the fund will create successful ventures, but also that Agora have an exit plan. Aside from being able to find outstanding entrepreneurs with promising business ideas, they have to answer the following two finance-related questions: Which dividends-based structure to put in place to guarantee a fair deal to the entrepreneur but also a good return on each investment, given the extreme volatility of each portfolio company's performance? And, to what extent should they accept third-party investors? After that they will have to discuss the performance of the fund, where the following issues remain unanswered. What IRR should the donors/investors expect to receive for the equity portfolio? And, what returns on the debt and equity should Agora seek from each investment to achieve the committed IRR on the debt and equity portfolios? Should they even set a target IRR for the fund? Answering these questions also involves understanding the nature of the capital sources that are investing in the Agora Fund.