| In This Issue | Root Capital Reaches $200 Million | | On May 13, 2010, Root Capital reached an important milestone - $200 million in disbursements. We have now loaned to 282 small and growing businesses representing 400,000 smallholder producers in 30 countries. Achievement of this milestone is the result of an average 40 percent growth in disbursements each year since 2007. Help us to continue to grow to serve more smallholder producers in rural communities.
| | | |  La Red Guaconejo In 2007, La Red met Taza Chocolate, a small bean-to-bar chocolate maker and the only producer in the US of 100 percent stone ground, organic chocolate. The company roasts, winnows, grinds, tempers, and molds chocolate by hand. Taza began to buy its cocoa beans directly from La Red and was so impressed by the cocoa’s quality that the company now buys 90 percent of its cocoa there. However, in order for La Red to pay its farmer members on time, the cooperative needed a loan. Taza provided La Red with an initial loan, but in order to grow and increase its sales, the cooperative needed another source of financing. In 2009, La Red received its first loan from Root Capital, which has allowed the cooperative to continue to improve its productivity and the quality of its cocoa beans. “With Root Capital, La Red could finally buy from our farmers without having to constantly look for small amounts of money to borrow throughout the harvest. Every year we worried when a producer called to sell to us that we wouldn’t have the money to pay them for their cacao,” said Francisco Batista, a member of La Red’s Board of Directors. “Now finally, we have the answers we were always hoping for.” With credit from Root Capital and reliable sales to Taza Chocolate, La Red can pay its members a higher price for their cocoa beans than the farmers could get elsewhere, allowing farmers to improve their standard of living. Credit from Root Capital thus allows La Red to continue to grow, and allows Taza Chocolate to continue to produce high quality chocolate. Watch a video, look at pictures, and read more about La Red Guaconejo and Taza Chocolate on our new client map Taza Chocolate recently experienced severe flooding that damaged their production facility. Learn more about the flooding and how to support their recovery efforts. | |
Upcoming Events | | Want to connect with Root Capital? Look for us here: 2010 Fair Trade Futures Conference
September 10-11, Boston MA Agriculture 2.0 Global Markets
September 14, New York, New York Aspen Network of Development Entrepreneurs Annual Conference
September 29-October 1, New York, New York SOCAP 2010
October 4-6, San Francisco, CA Opportunity Collaboration 2010
October 15-20, Ixtapa, Mexico | | | Message from the Founder Dear Friends,  In addition to celebrating our 10th anniversary this year, we are commemorating another important milestone. This summer, we awarded our 800th loan and reached a total of $200 million in disbursements! This reflects a 44 percent annual growth rate. These loans, provided to small and growing businesses across 30 countries in Latin America and Sub-Saharan Africa, have positively impacted the lives of more than 400,000 smallholder producers and their families. For the role you have played in helping us to achieve this, and for your steadfast support of our continuing growth, I am eternally grateful. One thing that makes our work so meaningful for me is that on the other side of each loan disbursement are the personal stories of individuals and communities using the power of international markets to improve their condition. With this in mind, I want to share with you a highlight of one of my recent trips to Peru. I began the trip by visiting Pangoa, a 30-year-old coffee and cocoa cooperative located in the mountains of Central Peru. Pangoa all but collapsed in the 1990s under relentless attacks by the Shining Path. The violence was so rampant that locals referred to the main road into the town of San Martin de Pangoa, where Pangoa’s office and warehouse are located, as “el camino donde la vida no vale nada” (“the road where life isn’t worth anything”). However, despite the violence that has stood in the way of Peru’s economic growth, Pangoa is thriving. Root Capital has extended financing to the business for five years running, allowing us to witness the financial and cultural stability that Pangoa offers to its farmers. I’m not one for hero worship, but if there’s a woman who deserves it, it is Pangoa’s gerente Esperanza Dionisio Castillo, a remarkable leader whose understated style belies tenacity equal to that of any entrepreneur I’ve met. We assembled this short video from the footage I had taken. While it’s impossible to capture the full power of Esperanza’s commitment to social change, the video offers a glimpse of the hard work that has generated such a significant impact on the lives of the members of Pangoa. A few weeks later, I changed out of my muddy boots and into a suit and tie to join a roundtable discussion in New York City hosted by McKinsey & Company and by Al Gore through his organization, Generation Investment Management. The topic was how to address the barriers to achieving “sustainable capitalism” and I did my best to bring Esperanza’s voice into the boardroom. Although I’m sure that I didn’t do her justice, I was encouraged and inspired by the broad range of people sitting at the table – from corporate leaders to policy makers, academics, and social entrepreneurs. Without suggesting that there are any easy solutions, I’m encouraged to see that from the Andean highlands to the skyscrapers of Manhattan, we’re part of a sustainable capitalism movement that expands each year. We’re humbled by the company we keep and deeply thankful for your support. Yours sincerely, William Foote | | Root Capital Awarded Charity Navigator's 4-Star Rating  Charity Navigator, America's largest independent evaluator of charities, has awarded Root Capital a 4-star rating for the fourth consecutive year. In the award letter, Ken Berger, president and chief executive officer of Charity Navigator, states, "We are proud to announce that Root Capital has earned our fourth consecutive 4-star rating for its ability to efficiently manage and grow its finances. Only 8% of the charities we rate have received at least four consecutive 4-star evaluations, indicating that Root Capital consistently executes its mission in a fiscally responsible way, and outperforms most other charities in America. This 'exceptional' designation from Charity Navigator differentiates Root Capital from its peers and demonstrates to the public it is worthy of their trust." Click here to read the full award letter | | PorFin's Success Provides Foundation for Advisory and Training Program "PorFin doesn't just train and leave. It makes sure change happens."
- Clarissa Morales, general manager of Corecafe, Honduras
 Porvenir Financiero (PorFin), Root Capital's pilot Financial Education and Training Initiative, concluded last month after four years of resounding success. Developed in partnership with EARTH University of Costa Rica and the Inter-American Development Bank (IDB), the initiative ran training workshops for small and growing businesses and provided professionals with one-on-one assistance addressing specific business needs. Ninety-one percent of participating organizations now have efficient accounting systems, financial planning for their businesses, and stronger financial literacy for managers and members. Fifty-four percent of the organizations have accessed and diversified their sources of finance with a total of 70 new loans attained throughout the length of the project.  Other project results include: - 14 training modules developed
- 293 workshops delivered
- 5,847 participants trained, 31% women
- 2,297 days of technical assistance provided
The training modules, teaching techniques, and curricula developed throughout the course of PorFin will continue to be used in Root Capital's other Advisory and Training initiatives. | | Root Capital Volunteers at The Food Project  As part of its commitment to agricultural education, Root Capital's Cambridge team spent the morning of June 29 farming. In what has become a bi-annual tradition, we spent the day weeding, hoeing, and harvesting crops at The Food Project in Lincoln, Massachusetts. The Food Project is dedicated to creating personal and social change through sustainable agriculture, and each season, the organization grows nearly a quarter-million pounds of food without chemical pesticides. The Food Project donates half of its product to local shelters, and sells the remainder through Community Supported Agriculture (CSA) crop “shares” and farmers’ markets. And yet again, we returned from a morning on the farm exhausted, sunburnt, dirty, happy ... and reminded of just how hard our clients work every day of their lives. | |
"When you do the common things in life in an uncommon way, you will command the attention of the world." George Washington CarverWhat is Social Entrepreneurship?Statement of Faith
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