Microlumbia Impact Fund

Overview

Microlumbia Impact Fund is a student-run impact investing fund at Columbia Business School, founded in 2007 and incorporated as a 501(c)(3) non-profit organization. The fund focuses on supporting financial inclusion in underserved communities worldwide by providing debt investments and pro bono advisory services to social enterprises and institutions. Its mission includes educating and inspiring the next generation of impact investors through hands-on experience and educational events. The fund's investment strategy involves providing debt capital to early-stage companies with significant growth potential or later-stage companies seeking to test new innovations or scale into new markets. These investments typically range from $10,000 to $25,000 and are structured as direct debt investments with a time horizon of less than two years. The target sectors include microfinance institutions, small enterprise lenders, and social enterprises focused on financial services innovation and technology. Microlumbia's three-pronged approach encompasses education, consulting, and investment. Through educational initiatives like lecture series, speaker panels, and conferences, the fund offers opportunities for the Columbia University community to learn about impact investing and network with professionals in the field. Consulting projects involve due diligence assistance to impact investment funds and their portfolio companies, often carried out by Columbia MBA students. The investment component focuses on providing debt capital to support financial inclusion for un- and under-banked populations, maintaining strong relationships with investees to help them develop and scale their operations.

Investment Focus

• For-profit or non-profit enterprises promoting financial inclusion through banking solutions and financial products or services, including microfinance, small/medium enterprise lending, and financial services innovation and technology.
• Early-stage companies with significant growth potential or later-stage companies seeking to test new innovations or scale into new markets.
• Underserved and underbanked markets across the globe, with a specific focus on developing nations and the United States.
• Funds to be used for on-lending purposes or initiatives that will directly promote financial inclusion, such as launching an innovative product/service.
• Management team with a passion to create a financially inclusive society, commitment to make a positive impact, confidence to execute the business plan, and a willingness to partner with Microlumbia.