Balloon Capital supports micro entrepreneurs to grow 100x through
intensive business support and quasi equity investment up to £15,000 so
that new jobs are created and local economies flourish.
Apollo
Apollo the entrepreneur
27
Entrepreneur
He is full of ideas and
has big ambitions
Apollo has just arrived at work. He
produces and sells mineral supplements
for cows that increase their milk
production. The demand for Apollo’s
product is growing fast because customer
research has shown that it yields better
results and is cheaper than competing
offers. He has employed 2 staff members
to help him keep up with the demand.
Apollo’s Problem (strategy)
Apollo has previously worked with
Balloon and taken two 0% loans. He
has grown his revenue from $75/
month to $750/month in 15 months
and now wants to grow further. He is
struggling to fulfil all of the new
orders coming in and keeping up
with his accounts is proving
increasingly difficult. He also isn’t
confident pitching to larger clients
and doesn’t have a clear expansion
plan.
Apollo’s Problem (finance)
As well as knowledge, Apollo also
needs larger sums of money to
scale so he decides to approach
micro finance institutions and banks.
Most of them turn him away
because he doesn’t have collateral
to secure the investment. The best
offer he gets is a 12-month loan at
30% interest with no grace period
which would put too much pressure
and risk on the business to support
growth.
Joining Balloon Capital
Balloon have been monitoring
Apollo through their network of loan
and impact officers. Seeing the
potential in him and his business,
they invite Apollo to join the Balloon
Micro Venture Capital Fund. Balloon
brings in an experienced business
consultant (Yimin) to work with him
intensively for 6 months. Balloon also
invests $15,000 as a quasi-equity
investment so risk is shared and no
collateral is required.
Six-months of intensive support
Everyday for 6 months Apollo and
Yimin work together. They invest the
money in a vehicle to deliver orders.
They buy machines and inputs to
increase production and hire 3
additional employees (finance,
production, marketing). They win
and fulfil ever larger orders and
together they plan a 3-year strategy
to grow the business. Apollo feels
great and is starting to think big!
18 months of growth
After 6 months Yimin steps back
from her work in the business. Apollo
is nervous at first but through local
staff, Balloon continues to offer
bespoke support. 18 months after
the programme Apollo’s revenue
has grown 20x and he has created
opportunities for more young
people, employing 15, many of
whom were previously unemployed.
Supporting others
3-years after joining the Balloon
Micro Venture Capital Fund, Balloon
exit. Through profit sharing Balloon
has recovered £45,000 (a 3x return)
to reinvest in other businesses.
Apollo now employs 40 staff and
mentors other Balloon entrepreneurs
to “think big, start small.”