Impact
Impact Investing with Monica Brand Engel from Quona Capital
In our "Meet the Managers"-series, we introduce you to our universe of SFDR 9-compliant impact funds with ambitious, measurable environmental and social sustainability objectives alongside market-rate return targets.
Quona Capital is a venture firm investing in leading fintech companies in Latin America, South & Southeast Asia, and Africa & the Middle East. Quona backs companies that have the potential to provide outstanding financial returns and promote pioneering innovations in financial inclusion for underserved consumers and small businesses. Together with the company's Co-Founder & Managing Partner, Monica Brand Engel, we talked about their strategy and goals.
What does it take to make successful investments in your sector?
Monica Brand Engel: Quona’s goal is to accelerate financial inclusion in emerging markets while making no tradeoff between financial returns and social impact. Success in our sector demands a trifecta of focus, perspective, and authenticity.
By focusing deeply on fintech over the past decade, we position ourselves as strategic partners to our portfolio companies, offering more than just capital. Our local and global team – many of whom are entrepreneurs and operators themselves – bring rich perspective gleaned from working with similar businesses in other markets – providing founders and investors with actionable insights.
As a partnership, we have started, scaled, and exited companies across our markets, so we understand the highs and lows and regional nuances and bring an authentic approach to leadership. We don’t just operate in our markets – we live in them, fluent in over 20 languages and attuned to local needs. Our humility grounds us, and we are driven by a deep curiosity about innovations with the power to move the needle.
What drives demand fort he products in your sector?
Monica Brand Engel: Consumer demand for financial services is typically driven by a desire to improve the quality of life of families – whether it is educating their kids, adding a room to their home, saving for a vehicle, or managing through an unforeseen crisis. Similarly, small businesses desire access to essential financial services like working capital and transaction accounts to manage their day-to-day operations. They also are increasingly looking for value-added services that allow them to grow their businesses, employ more people, and better service their customers.
The digital era has spurred the demand for solutions that are safe to use, easy to access, and affordable, but also profitable – driving financial inclusion forward. Founders are also leveraging AI and incorporating a sustainability mindset to create fresh solutions, marking an incredibly exciting time in the industry.
What was your latest investment and how does it make our world more sustainable?
Monica Brand Engel: My most recent investment was in Twinco, a female-led company focused on creating sustainable supply chains globally.
While we’ve invested in several startups at the intersection of financial services and the real economy, we’re especially excited about those emphasizing sustainability and setting minimum standards for responsible business. Twinco empowers smaller manufacturers in emerging markets through fintech, facilitating their access to global markets, promoting ESG standards, and providing ESG auditing for global buyers, enabling both suppliers and buyers to make better choices for the planet. They do this work through automated dashboards that allow buyers to monitor environmental and social risks, compare supplier performance, and adhere to global standards.
