Root Capital

Root Capital 

Root Capital invests in small-scale farmers and agricultural businesses in Latin America and Africa. They provide loans and financial management training to these small-scale agricultural businesses. Since the businesses now have more credit, they buy more products from small farmers. The businesses also provide agronomic training so the farmers can optimize their yield. The small businesses also give back to their community, which enables a higher quality of life and resources in their locality.They lend money to small agricultural businesses within regions of economic or political instability. They also invest in markets like cocoa, coffee, and tree nuts.They are an impact-first fund. They target countries where there is economic or political instability and in volatile markets like coffee, cocoa, and tree nuts.They target the agricultural sector.They target Africa, Sumatra-Indonesia, Latin and South America. You can make donations or invest with them long-term or short-term.Currently, they have $47 million AUM. They have lent $1.85 billion.I would personally not invest in this company. This fund specifically targets economically or politically unstable countries. They also target an already extremely volatile sector, which is the agricultural sector. Then, on top of that, they invest in even riskier agricultural markets like coffee, cocoa, and tree nuts. There is too much risk involved, which does not align with my personal risk/reward strategy. I also believe farming is an outdated sector and will be replaced with smart farming and technology, where human labor will be limited. But their investments are truly making a great positive impact on communities that need it most.