Root Capital

Root Capital invests in the growth of agricultural enterprises so they can transform rural communities. These businesses purchase crops such as coffee, cocoa, or nuts from smallholder farmers. With growth, they become engines of impact that can raise incomes, create jobs, empower women and young people, sustain peace, and preserve vulnerable ecosystems.

We envision a thriving agricultural sector that enables rural communities around the world to become

Goal One: Grow our credit and capacity building services to serve at least 425 enterprises and one million farmers per year.

Goal Two: Equip enterprises in vulnerable communities to help farmers adapt to climate change and invest in climate adaptation solutions.

Goal Three: Increase the flow of global capital and training to gender-inclusive and women-led agricultural enterprises.

We are currently developing a comprehensive leadership training and management skills program for 100% of managers. This program enables them to effectively identify the progression of their direct reports and determine a clear focus for professional development. We also invest in department-specific training that further develops the skills of our employees. For example, employees can work with their department managers to approve and fund course work relevant to their responsibilities and career goals.

In an April survey, 42% of Root Capital’s client businesses reported problems in transporting their harvest for export. Two-thirds said they had to suspend or dial back their services for farmers. And 75% predicted ongoing setbacks and delays in their harvest and sales process. Beyond these operational challenges, businesses reported panic and uncertainty in their communities. Farming families were in need of critical goods and services, and agricultural enterprises were positioned to be first responders. But they needed the tools and resources to stay afloat, meet new challenges, and continue supporting their farmers and employees. Taking our cues from the agricultural enterprises we’ve worked with for over two decades, Root Capital quickly pivoted to meet their most pressing needs. As a first step, we surveyed 130+ agricultural businesses to understand how the pandemic was impacting them and their communities. With this knowledge, we could direct our response to where it was most needed, supporting locally-led solutions. The most immediate challenge was to ensure that businesses could continue operating while keeping farmers and employees safe. To that end, we: 1) Disbursed $1.7M in emergency resilience grants so businesses could meet urgent health and economic needs. With these grants, our clients provided life-saving soap, masks, and other hygienic supplies to thousands of families; made their offices and warehouses safer for employees; and even planted gardens to ensure access to food during a prolonged crisis. 2) Trained 184 businesses in crisis management skills, such as financial forecasting and safe harvesting and processing practices. For the first time, our advisors delivered this vital business training 100% online. 3) Provided loan restructuring and debt relief to clients experiencing significant market shocks or cancellation of contracts.