Our progression model
Our progression model is at the heart of our ‘pioneer-develop-scale’ strategy, through which we support customers throughout their development journey with the most appropriate financing solutions. We help unlock opportunities from the earliest pioneering stages involving market creation and public funding, through financing from FMO’s balance sheet, and to the mobilization of commercial capital to scale projects. Through this progression model, we aim to maximize our impact, generate financial returns, and build a diversified portfolio in a balanced way.
The progression model outlines our long-term approach to supporting our customers, helping them strengthen and grow their businesses through four distinct funding stages. Throughout this journey, we also provide technical assistance and enhance capabilities on environmental, social, and governance (ESG) topics.
Market creation
With market creation, we aim to make unbankable opportunities bankable, both through business development, and by developing ecosystems that seed and nurture nascent segments and businesses. We do so with the support of donor funding by working with other DFIs, impact investors, and on-the-ground partners who help develop businesses until they are investment-ready for us, leveraging our financing and ESG capabilities.
Public funds
We make high-impact and high-risk investments possible by leveraging public funding to support entrepreneurs working on new business models or operating in underserved markets.
FMO’s balance sheet
We finance and support proven models through our own balance sheet. This is the core of our operations. It is where we provide bankable businesses and projects with a range of solutions, including debt, equity, and guarantees.
Mobilization
We scale our impact by mobilizing investors and bringing opportunities into the mainstream through new fund propositions, leveraging our own balance sheet, and by using blended finance structures that combine different sources of capital to unlock commercial funding.