Applications to join the NESsT Racial Equity Initiative are now closed! Thank you for your applications.
The program
In 2022, NESsT launched the Racial Equity Initiative to improve financial inclusion for Black people in Brazil. The initiative is supported by the Citi Foundation and BNY Mellon.
The Racial Equity Initiative is a multi-year project that provides funding and business assistance to impact-driven enterprises creating income and employment opportunities for Black people, helping them to access more capital to scale their businesses.
Through this open call, we seek to welcome social enterprises into the initiative to support them to grow their business and its social impact among the Black community.
During their time in the Racial Equity Initiative, entrepreneurs and their teams receive direct business assistance from NESsT Portfolio Managers and training with experts from NESsT’s networks. Additionally, they also access flexible financing that meets their needs. On average, social enterprises participate in the NESsT portfolio for 2–3 years.
“Black entrepreneurs face limited access to both capital and patient capital. At NESsT, we prioritize investments with a racial equity lens to ensure they benefit predominantly Black communities and other excluded individuals in Brazil, including Indigenous and riverine peoples, and Quilombolas. Our Racial Equity portfolio demonstrates our commitment to driving the economic empowerment of these communities, as we collaborate with Black entrepreneurs to advance their social and racial impact in an ecosystem in which they are underrepresented.”
Who should apply?
We are seeking social enterprises in Brazil that offer dignified income and employment opportunities to the Afro-descendant community, improving the livelihood and quality of life of Black individuals.
Enterprises should be in the validation phase (enterprises with a validated product or service but cannot support operations) or entering the growth stage (enterprises whose sales cover initial operations but cannot sustain growth).
Social enterprises that would be the best fit for this portfolio have a well-established team and demonstrate a strong potential to scale their business and social and environmental impact. We will also consider enterprises that face obstacles when accessing financing from traditional sources due to the high-impact nature of their businesses, and that can most benefit from the advisory and mentoring services provided by the NESsT Racial Equity Initiative.
Enterprises generating formal, fairly-compensated jobs for Black communities in the following areas are especially encouraged to apply:
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Generally speaking, these are business models that focus on finding value in used items. Examples are enterprises in the waste management and secondary raw material sectors that collect, sort, and recycle materials. We are also looking for enterprises with ‘care and repair’ models, recycling and upcycling services, and platforms that encourage the use of second-hand products.
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Social enterprises with business models that train, employ, and place people, specifically individuals from Black communities, in formal jobs, creating quality employment opportunities and addressing talent gaps.
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We will also consider enterprises that have pioneered creative solutions to enhance the well-being of Black communities across various domains, including education, healthcare, affordable housing, addressing the effects of climate change, and exploring new economic opportunities.
Social Impact
The program seeks enterprises with the potential to directly employ, place into employment, or increase the income, directly or indirectly, of at least 50 people from the Black community in the next 3 years.
We are seeking engaged partners that demonstrate a commitment to improving the income and quality of life of Black communities.
Clear Growth Opportunity
Selected enterprises offer an attractive product or service with evidence of demand that may include:
Participation in a market that is expanding, or opportunity to enter a new market (customer segment, new geographic area, etc.).
Opportunity to double sales in the next 18–24 months.
If the enterprise has not yet reached break-even, it demonstrates the potential to become profitable in the next 12–18 months.
Annual sales of at least R$300,000 annually; if sales are less than this amount, demonstrate capacity to reach this level within 12 months.
Strong Team
Enterprises should have a competent management team driven by strong ethical values and that is respected and integrated in the communities in which they operate.
Entrepreneurs/founders are shareholders and form part of the executive team.
Preference for teams with a minimum of 2–3 people and with at least 50% Black leadership.
Enterprises will have at least one woman on the management team or show a strong commitment to increasing the number of women in management positions in the next 12 months.
Financing available:
Type of financing:
Recoverable grants equivalent to soft, long-term, interest-free loans
Grants (evaluated on a case by case basis)
Investment amount per social enterprise:
Average investment of between R$200,000 and R$300,000 throughout participation in the program
Examples of the use of financing:
Business model validation
Product/service improvement
Improvement of the operations model
Sales and marketing capacity expansion
Digital platform development, digital transformation, and implementation of new technologies
Systems to track social impact
Working capital
During the initial selection stage, our portfolio team will schedule interviews with shortlisted enterprises and stakeholders. We will also conduct site visits and meetings to develop a deeper understanding of your social enterprise and your growth prospects. This will include a deep dive into your company’s operations, team, and its social and environmental impact.
Next, the portfolio management team will draw up investment memos/reports to present your business to two external investment committees. After this stage, the final decision on whether your business will enter the portfolio will be made. The selection and due diligence process may take up to 3–4 months from the date of application. During this time, your enterprise will receive suggestions, ideas, and recommendations.
Commitment
By applying to the Racial Equity Initiative, social enterprises and their teams commit to allocating time to work with portfolio managers, engaging in the program’s required activities and upholding the NESsT core values:
Creating jobs that pay fair wages and prices, and that contribute to providing a quality of life for Black individuals
Addressing diversity, equity, and inclusion in the workplace and implementing corresponding practices
Incorporating environmental sustainability practices into their business and social impact models
Questions
Still have a question? Get in touch with us at equidaderacial@nesst.org or contact us via the form below.