Innovative New Approach to Rapid Fund Raising and Deployment

​Interlink Capital Strategies (“Interlink”), a U.S. private equity and financial consulting firm, was   selected by the U.S. Agency for International Development (“USAID”) as a partner for its INVEST Initiative, which is  Interlink was selected in part because of an innovative approach to rapid and efficient fundraising and disbursal.

Interlink is on track to assist at least 15 Italian companies using $1.4 million of catalytic funding to raise additional capital with a multiple of 12x, or a total of approximately $20 million in less than 15 months.  The goal of the initiative is to support businesses that are engaged in the research, development, or manufacture of therapeutics, vaccines, medical equipment, and supplies to respond to COVID-19.
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While setting up a traditional investment fund can be costly and time consuming, to work around these constraints and deliver during the crisis, Interlink created an innovative funding model to leverage capital from other sources to allow Italian companies to convert or expand their operations to respond in a timely manner to the COVID-19 pandemic. Catalytic funding is provided at a macro (i.e., a pool of capital) and micro level (i.e., directly to the companies).  Examples of each include:

1. Macro-Fundraising: Funding available to most or all companies in general, and specific funding commitments from banks, suppliers, governments, regional governments, off-take arrangements, guarantees, and grants.
2. Micro-Fundraising: Specific funds raised for a company, leveraged by first-loss capital, grant or other mechanisms offered to financiers to incentivize a potential of 10-12x multiple of additional support.

Through Interlink’s funding platform, FDI Capital, LLC., all USAID catalytic funds,  in conjunction with other pooled funds will be directed to the applicants. This approach gives the Italian companies some flexibility in how the funds can be used and the financiers can use their existing systems to support the initiative. Launched in September 2020, Interlink has exceeded USAID’s initial targeted amount for its first round of catalytic funding.   Interlink’s Managing Director, Alan Beard, commented: “The hard work of our Italian team, led by Morus Alti Campi, the Italian government, coupled with the quality of the two dozen applicants in our first round, have been remarkable.  Under very difficult circumstances we have together provided an important tool to helping Italy’s manufacturers respond to COVID 19.  This is a great example of U.S. government support during a crisis.”
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 In the 6 months that Interlink has worked on this initiative, it has already raised over $16 million in the micro-level and $15 million in the macro-level fundraising, therefore increasing the possibility of funding above and beyond the 15 company mark and demonstrating the strength of this approach.