Selection Process for Social Business Projects

The Fontana Foundation bases its work on principles, which it also uses as criteria for project evaluation.

Social Businesses who are interested in an investment by the Fontana Foundation can submit their proposal to info@fontana-foundation.ch. Proposals will be analysed based on mandatory criteria. In the case of a positive evaluation result, a due diligence process will be conducted, at the conclusion of which the foundation board will make a final decision, and an agreement will be formulated.

1. Mandatory Criteria
  • Anchorage in a development country: legal registration at minimum.
  • Impact orientation: Relevant and positive contribution of the business to poverty reduction and/ or social inclusion; appropriate cost-benefit ratio (investment in relation to scope of social impact).
  • SME in the seed or early growth stage: Tested product; business model with focus on sustainable growth; 2-3 existing investors, of which one is the founder and one is an angel investor.
  • Financial assessment and investment need: Transparent and comprehensible indication of the investment need.
  • Role of the Fontana Foundation: The Fontana Foundation plays a key role as investor with influence on strategic business decisions. The social business shares business information, incl. annual financial statements and consolidated financial statements with the Fontana Foundation as investor.
2. Due Diligence

Fontana Foundation reviews the submitted information, gathers further information, and analyses risks in the following areas:

  • Economic sustainability (business model)
    • Comprehensive, comprehensible and realistic situation analysis.
    • Convincing business model.
    • Business case with financial profitability.
    • Solid investment structure.
  • Corporate governance
    • Rule of law.
    • Existing core structures.
    • Active role of the founder.
    • Financial management.
    • Human resource management.
  • Social sustainability
    • Human rights due diligence.
    • Social inclusion.
  • Environmental sustainability
    • Environmental due diligence.