Investment Decisions

Funders tend to grade proposals as a way of determining who gets the money. In government, this often goes to the level of so many points for the needs statement, so many for the work plan. Investors realize that there is no great (or even minor in most cases) correlation between the beautifully written proposal and a great project to follow. This is why they start with a target plan and then use a due diligence process that concentrates on the key representations and assumptions made that will prove critical to success.

A key part of that process is sizing up the persons to play key project roles. Funders believe that the program’s logic model or theory of change predict success. Investors know that the person is as important as the approach—and then some. They look for the right “sparkplugs” and would almost never fund against a job description. Investors also may tie level of scrutiny with the potential gains. Their early review also lets them pin point just what needs to be learned from interviews and onsite visits.