Objective: To address the problem of global poverty by funding trading networks to bridge the gap between poor producers and markets. Synapse makes investment-grade grants and cultivates long-term financial relationships with scalable initiatives, helping to build the strength and capacity of grassroots producers and rural communities.

Commitment: To operate on the cutting edge of philanthropy by applying investment strategies to charitable giving, identifying organizations with viable business models and innovative approaches to opening new markets and cultivating opportunities for grassroots producer products.

Background: There are currently over one billion self-employed workers in the global informal economy, operating without a social safety net and almost totally disengaged from their nation’s formal structures of taxation and regulation. Yet these workers are an integral part of a globalizing economy. "Grassroots producers" are the working poor in the informal economy. Throughout the developing world, grassroots producers have banded together to form grassroots producer organizations (GPOs), which build the collective capacity of poor producers to leverage capital and facilitate trade.

The advent of micro-credit investment has made capital available to GPOs around the world. GPOs have used this capital to invest in productive assets and to produce an array of consumer and commodity goods. Yet while micro-credit has addressed fundamental financing issues, it remains inadequate to meet the broader needs of market development. So, despite the powerful growth engine of micro-credit, GPOs have not fulfilled their commercial potential due to their lack of market access.

Despite the great potential of trading networks, multilateral organizations and other donor sources are only just beginning to explore trading networks as a tool in the fight against poverty. There are currently no substantial funding mechanisms for projects that build trade infrastructure and trading networks that directly benefit grassroots producer groups. The Synapse Market Access Fund aims to fill the funding gap by raising funds to invest in trading networks for poor producers.

The Synapse Market Access Fund was founded in 2005 by The Global Fairness Initiative, an international NGO dedicated to nurturing innovative, scalable models that extend the benefits of globalization to poor communities.

Partnership Opportunity: Synapse’s entire operational model is based on creating partnerships and linkages with communities on the lending side, and with the funding community on the development side. Given its startup nature, Synapse welcomes partnership opportunities and investments from high net worth individuals, corporations, foundations and multilateral institutions.

Update:
December 2005:
A Board of Directors has been assembled representing some of the leading thinkers in venture capital investment, socially responsible investing, and market-driven development in emerging markets; a highly qualified staff has been lined up to identify and monitor scalable projects for Synapse investments; the documents and legal apparatus for Synapse to begin operations has been completed and the seed round capitalization plan is in development. First round of fund raising is planned for February 2006.