Doing new things, doing things differently

iSME Programme at a Glance

 The iSME Programme is a US$ 30 million initiative funded by the

Government of Lebanon through a loan from the World Bank. The
execution and implementation of all iSME Programme activities will be
undertaken by KAFALAT SAL.

 The Programme aims to encourage the equity investment market to

increase early stage investment finance for financially viable, new, and
existing INNOVATIVE firms.

 Under this programme, innovation is defined as:

 Producing new things
 Doing things differently or in a new way
 This can happen in any sector, where there is the creation of new
products, services or processes in business
 New can mean new to Lebanon, regionally, or globally
iSME Programme : financing tools

 The Programme provides two types of financing:

 Concept Development Grants (CDGs)
 Equity co-investment : Investments are possible in all
sectors and throughout the different development phases
of a firm :
 Seed
 Early Stage
 growth
How does the iSME Programme work?

 Concept Development Grant $2.5m

CDGs have a ticket of $15000 and are intended for
entrepreneurs to develop their innovative ideas and can be $2.5 m Grants
used to :

Develop innovative ideas and proof of concept

Attract external investment by addressing key risks

 Equity co-investments $25.0m

Equity co-investments will be made in an enterprise alongside $25.0 m Equity co-

another institutional investor as VC funds, holding companies, investments
formal business angel groups and investment banks.

To qualify for the equity investment, the entrepreneur needs a

commitment from an institutional investor to invest in the
firm. Then the partner investor or the entrepreneur can
1
approach the iSME Programme.
 Concept Development Grants ($2.5m)

 CDGs will be provided to eligible and potential

entrepreneurs in two phases :
 Phase 1 : a small grant of up to $5,000 which would
allow the entrepreneur to begin working on a proof
of concept
 Phase 2 : a grant of up to $ 10,000 which would
enable the entrepreneur to work closely with venture Phase 1
capitalists to prepare the enterprise for possible early $5,000
stage equity financing Phase 2
 To be considered eligible, applicants must show legal
$10,000
residency in Lebanon and may be:
 Individuals as defined under Lebanese Law
 Companies incorporated in Lebanon within one year
from the date of application

 A non-refundable handling fee of $50 is required

Grant Application Process and use of
the Grant
 Application Process :
 Application could be done online
 Evaluation is a two-step process whereby:
 First, a preliminary eligibility screening is done by the PMU Management
team at Kafalat to assess if the application meets the eligibility criteria
 Second, if the application passes the screening noted above, the
application is forwarded to three evaluators who will assess the proposal
and decide on the winning application.
 In case of grant approval, the beneficiary has 6 months to submit their outputs

 Use of the Grant/Eligible expenditures :

 A business plan/modeling
 Marketing/sales strategy
 Market assessment
 Prototype
 Other tools showing an improvement in the ability of the potential entrepreneur
to demonstrate the value of their proposed venture.
Grant Facility Summary
Grants Activity Grants Facility
The iSME Grants Programme received Remaining Capital
Grant Facility Size (K$)
184 applications : (K$)
$2,500k $1,165k
 91 applications were approved by
evaluators and awarded a sum of Commited grants as of
march 31, 2017
$1,335,000.
 From the awarded grants, the total
disbursed amount is $1055,000,
where 64 applications received Remaining,
Committed
46.60%
both phases of the grant 53%

($960,000) and 19 applications

received Phase I ($95,000).
 77 applications were rejected
Grants Committed Grants Disbursed
 15 applications are in the pipeline # K$ % # K$ %
91 $1,335k 53.4% 83 $1,055k 42.2%
Region, Gender & Age
Beirut Mount Lebanon North South Bekaa
39 44 3 5 0

 Majority of awarded applications are coming from Mount

Lebanon and Beirut, with 46% and 45% respectively for
each region
 North and South are at 10%, with 0 applications from Bekaa

Female Male Total

30 61 91

 Female entrepreneurs are defined by either founders or

team members of the project
 Out of the 30 female entrepreneurs, 13 are founders and
17 are team members of separate projects

20-25 25-30 30-35 35-40 45-50 50+ Total

9 20 29 21 9 3 91
10% 22% 32% 23% 10% 3% 100%
 23% of entrepreneurs are aged between 20 to 30
 35% between 30 to 35
 28% between 35 to 40
 14% above 40
Equity Co-Investments ($25m)

Equity co-investments will be made at three different

stages in risk finance:

Seed capital

Venture capital VC
(35%)
Growth Capital
($200k-$500K)
Growth
(40%)
($500k-$1.5 m)
Awarded Grants
Project Project Description

Riego A solar powered, agricultural irrigation dynamic-control devise that

enables optimizing irrigation water consumption through
monitoring the weather and soil parameters, tree growth, water
and fertilizers concentration. 

Rational Pixels A software solution that embeds the product in the video and make
it a natural, non-intrusive part of the scene.
Awarded Grants
Project Project Description

Turista Kit To create a preventive kit to test food safety for tourists
traveling to developing countries.

QuadroFighter We are offering a 24/7 autonomous drone capable of

detecting forest fires and alerting the authorities in a fast way.
The drone will automatically start surveying a specified area to
search for potential fires.
Awarded Grants
Project Project Description

Moodfit MoodFit is a new concept that made interior decoration an

affordable, accessible, and enjoyable experience for
everyone.

LifeLab LifeLab is a research and development venture dedicated to

the rollout of high yielding hydroponic farming technology and
its associated knowledge in rural and urban agricultural
projects across Lebanon.
ISME Partner Investors
Thank You !
KAFALAT S.A.L
Hamra street, Piccadilly Center
5th floor
Beirut, Lebanon – P.O. Box: 11-641
Phone : (+961) 01.341300/1/2
E-mail : kafalat@kafalat.com.lb
Web : www.kafalatisme.com.lb