Many projects submitted to us at Caribbean Climate-Smart Accelerator for investor matching, while addressing climate action, often lack the specific insights and information that investors need to spark their interest and make informed decisions.
While CCSA does not currently offer project preparation assistance, in this post we’ll share the major elements needed to make a project investment-ready, as outlined by our Director of Public Sector Projects, Kiesha Farnum.
- Determine the type of investment you are looking for
You should have a good idea of how you want an investor to support your project, whether that is through equity, a mix of debt and equity (mezzanine), traditional or concessionary loans. This should be outlined in your project proposal.
- Find out what investors are looking for
Identify the specific interests of investors and their stated commitments regarding climate-action. Some private impact investors for example may have requirements that projects they support have a particular type of social impact. As a project holder, identify how your work will help investors meet their commitments while also realising your goals.
- Develop a sound project description and business case.
The project description explains why you’re embarking on the project, states its objectives and essential qualities. The business case provides justification for the project evaluating the benefit, cost and risk of alternatives and providing a rationale for the preferred solution (your project).
- Know who is going to buy your product or service
Be clear on the characteristics and the needs of your intended customer/end user base and why your product or service will satisfy those needs. An idea can be ground breaking, it may even cater to some societal good but that does not mean there is an automatic market for it. If there is no market and you intend to create the need, what strategy are you going to implement to create market demand?
- Know your primary stakeholders
Who will support your project, be positively impacted by it and take great interest in it? This could be communities, the government, regulators, companies or others. Know their specific interests and decide how or if you’ll keep them informed.
- Be knowledgeable about similar projects
Be aware of similar projects within your intended market space and be clear about how your project fills missing gaps or provides complementary or supplementary products or services. You can learn valuable lessons from existing similar projects.
- Get familiar with the UN Sustainable Development Goals
You should be familiar with the commitments that your country has made towards fulfilling the United Nations Sustainable Development Goals (UNSDGs). and how your project can help in that regard.
Watch our previous Investor Forum here for a taste of what Investors want from projects in the climate action space.