Going Beyond Grants

Accelerating Impact

From Grants to Loans

As demand for Open Road grew in its first few years of operation, several trends quickly emerged.

First, the reasons that brought nonprofits to Open Road's door remained widespread and diverse. Through its grant portfolio, Open Road was solving for such varied roadblocks as Ebola, the Indian government's removal of large currency bills from circulation, a warehouse fire, robbery, delayed funder checks, staff illness, unexpected weather events, and more.

Second, the need for Open Road capital reached across all geographies, all sectors, and all organization sizes and types—including those with earned-revenue streams.

Third, as early as 2014, it became clear that sometimes the applicant in question was not faced with a budget deficit, but rather a cashflow crunch. In other words, the issue was about timing - when, not if funds would be available. In identifying this need, Open Road loans were born.

 

CEO Reflections

A Growing Demand
An Evolving Model

CEO Reflections

A Growing Demand
An Evolving Model

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Building Our Track Record

Open Road Loans

Soon, the most common question facing Open Road’s applicants was not if funds were coming in, but when. These organizations didn’t need a grant. They needed a loan.

2014

In 2014, Open Road started testing the hypothesis that impact-first organizations—whether nonprofit or for-profit—could catalytically benefit from fast, flexible, short-term bridge loans. By 2017 Open Road launched its formal proprietary loan portfolio, with a personal commitment from Laurie to disburse $50 million over five years.

2017

Led by Caroline Bressan, Open Road’s rapid growth as a lender served as evidence of the growing demand for more flexible and creative funding mechanisms in the social sector. It was clear Open Road's model extended beyond grants and Open Road established itself as the go-to lender enabling nonprofits and social enterprises to keep impact on track.

2020

The Open Road loan model continued to scale and prove itself, recycling funds with an average loan term of 12 months and minimal losses. In March 2020, Open Road officially opened its model to outside investors through the Open Road Impact Fund. The Impact Fund builds on Open Road’s 8+ years experience as the market leader in bridge financing. It is the first investment fund designed to enable impact first ventures to move from impasse to impact.

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OPEN ROAD LOANS

Open Road’s loans continued to keep millions of dollars on track, while also leveraging $9 of follow-on financing for every $1 disbursed. As Open Road expanded its loan portfolio, it also received industry recognition as an award-winning model for impact investing.

Open Road Loans

A Growing Demand
An Evolving Model

Open Road Loans

Accelerating Our Borrowers' Impact

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Stories of Impact

Open Road Borrowers

Open Road sees every loan it makes as an investment for social impact. Our operating model is based on speed and financial leverage. As one of our borrowers stated: "most funders recoil when they see desperate situations, but ORA rushes in and knows how to separate short term crisis from long term impact potential."

Investigates exposes and combats violations of the rights of children across the United States.

1One thing you want funders to understand about what it takes to run a nonprofit or social enterprise in 2022 and beyond.

Bringing about deep, systemic change—which is what Children’s Rights does to protect kids’ human rights—doesn’t happen when funders simply fund for sustainability. It happens when they collaborate in a nonrestrictive, flexible way that supports innovation and informed risk-taking and allows us to react to change quickly and effectively—to grow and thrive, not just to survive.

2A source of inspiration and/or pride for you/your organization.

We’re inspired by the young adults we work with whose lived experience and expertise in child welfare has become a powerful force for transforming broken systems that perpetuate poverty, racism, abuse, and discrimination.

3One bold decision your organization made that proved to be worthwhile.

We have called out racism at the front-end of child welfare and committed ourselves to disrupt it through legal action and relentless advocacy to prevent the unnecessary surveillance, investigation, and separation of Black families. This is a top strategic priority that informs all our work and by which we evaluate our organizational impact.

4One wish you have for Open Road’s next 10 years.

For 10 years, Open Road has been a pioneer and is now uniquely positioned to lead a philanthropic movement to permanently shift to the less restrictive, flexible, and collaborative funding model adopted by many funders during COVID. The ability to respond and move quickly is critical when the unexpected happens. We know the next challenge is just around the bend.

5Anything else you want to share?

Thanks to Open Road, in a year of unprecedented hardship and threats to children’s health and safety, we were not only able to quickly respond to COVID and its effects on children but expand and marshal the largest advocacy docket in our history.

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Better, faster emergency response. Next-generation technologies for first responders.

1One thing you want funders to understand about what it takes to run a social venture in 2022 and beyond.

Running a start-up requires constant curiosity and resilience. Curiosity to continue to test new ways to grow, and build your team, ops and business, and resilience to withstand all the learnings, and challenges.

2A source of inspiration and/or pride for you/your organization.

We are inspired every day by the lives we impact - from the expectant mom who needs to get to the hospital to deliver her baby to the motorcycle driver who has been in a road accident, to the grandfather who's had a stroke. Each and every day, we save individuals from previously impossible situations and give them peace of mind & lifesaving services.

3One bold decision your organization made that proved to be worthwhile.

We decided early on to transition from a pure tech business to one that leverages tech & humans to deliver healthcare services. This was a bold decision as we were effectively plugging ourselves into the middle of a critical process. We took on the role of being the central dispatch like a 911 / 999, which allowed us to better manage and allocate ambulances during an emergency. This was a bold decision and deviation from the Uber-like model, but one we have never looked back on. We see the immense value that our medical dispatchers have in leveraging the tech to deliver healthcare services, but being a voice on the other end of the line for emergency patients, providing care, life-saving directions, and peace of mind.

4One wish you have for Open Road's next 10 years.

My wish for ORA is that it's 10x bigger in 10 years. It's such a tremendous organization that has stepped in twice for our business during critical moments and transitions. It allowed us to keep our impact and business on track while we shored up the required resources to scale. My wish is for ORA to expand - fund more businesses in an even bigger way to leave an even larger imprint on social impact businesses and ultimately lives.

5Anything else you want to share?

Thank you! Without ORA, we would have been derailed several times at Flare. ORA has allowed us to be able to have continuity in our business during difficult moments, and has been such a solid partner to growing our business.

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Capitalize and equip emerging market entrepreneurs to create affordable access to drinking water and other necessities.

1One thing you want funders to understand about what it takes to run a social venture in 2022 and beyond.

To scale, impact must fundamentally drive revenue, and revenue further impact. Only models with impact & money integrated can scale while holding true to their Northstar!

2A source of inspiration and/or pride for you/your organization.

At the center of Jibu's culture is a mantra we have adopted from Shirzad Chamine: "Every challenge is a gift and an opportunity."

3One bold decision your organization made that proved to be worthwhile.

Despite not having a clear line of sight of where to get the resources to do it, we decided to continue to invest in growing our impact rather than focusing on short-term profitability or cash flow. Open Road Alliance allowed us to keep that plan on track!

4One wish you have for Open Road’s next 10 years.

My wish is that Open Road will keep its narrow focus exactly how it is now, but be able to do it at a much larger scale globally!

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Loans: By the Numbers

Market Demand

Impact companies often seek an Open Road loan for similar reasons as Open Road grantees. The main difference is that a borrower's challenge is more readily solved with a loan than a grant. The pursuit of catalytic opportunities also accounted for an additional 11% of Open Road's loans.

Loans: By the Numbers

Fast, Flexible, Funding

From installing mini-grids in frontier markets in West Africa to addressing the challenges of financial inclusion for the emerging middle class in Colombia, Open Road loans are designed to ensure that companies addressing the world’s greatest challenges like climate change and inequality continue to scale during crucial moments of growth. Since its founding in 2012, Open Road has loaned nearly $50 million to 125+ social impact organizations, keeping $500M of impact and follow-on financing into these ventures on track.

$49M+

In Loans Disbursed

110

Organizations funded

$540M+

Impact Kept on Track