| Root Capital | |
| Type: | Nonprofit |
| Founded Date: | 1999 |
| Key People: | [1] |
| Founder: | William Fulbright Foote |
| Location City: | Cambridge, Massachusetts, U.S. |
| Location Country: | United States |
| Location: | 130 Bishop Allen Drive, 2nd Floor, Cambridge, Massachusetts, U.S. |
| Area Served: | Africa, Latin America, and Southeast Asia[2] |
Root Capital is a nonprofit organization operating in poor rural areas of Africa, Latin America, and Southeast Asia.[3] [4] According to its website, Root Capital "seeks to maximize the positive social and environmental impact of [its] work through a three-pronged strategy: finance, advise, and catalyze."[5]
Root Capital claims to follow a three-step approach towards making a positive impact in the poor rural areas of Africa and Latin America where it operates. The three steps are:[5] [6]
According to its impact page,[7] Root Capital has disbursed US$1.5 billion between 1999 and 2020 and reached 9.9 million household members in rural communities.
Root Capital is one of several money managers to pursue a gender lens investing strategy.[8] In 2012, Root Capital launched their Women in Agriculture Initiative (WAI) to address the unique challenges faced by women in rural areas.[9] The WAI uses capacity-building training and gender-lens investing to unlock growth at women-led and gender-inclusive businesses. These businesses, which represent 48% of Root Capital's portfolio, must have at least 30% women farmers and employees (or at least 20% if they are also women-led).[10]
Root Capital seeks funding from both individual donors and foundations. Foundations that have funded Root capital include Mulago Foundation,[11] Jasmine Social Investments,[12] and Peery Foundation.[13]
Charity Navigator had given Root Capital a four-star rating (its highest possible) continuously beginning in 2005, but downgraded their rating to three stars on December 1, 2019.[14]
Charity evaluator GiveWell had a conversation with the CEO of Root Capital in September 2011,[15] and planned to publish a detailed review of Root Capital in 2013,[16] however GiveWell's review of Root Capital was still not complete as of November 2019.