Accelerating Impact
From Grants to Loans
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.
CEO Reflections
A Growing Demand
An Evolving Model
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.
Media Headlines
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
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."
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
Loans: By the Numbers
Geographic Distribution
A Closer Look At Loans
Activating the Impact Fund
Launched in 2020, the Impact Fund, grew at a rapid scale. Within its first two years the Open Road Impact Fund has distributed more than 40 percent of Open Road's loan portfolio.
$21M+
Loans Disbursed
40%
Loan Portfolio
$276M+
Impact Kept on Track
Pushing the Limits of the Open Road Model
The Impact Emergency Room
When COVID-19 hit in March 2020, Open Road found itself on the frontlines of a global response. In the first four months of the pandemic, Open Road received more than 1,200 funding inquiries, totaling more than $150 million in requests—compared to a total of 351 inquiries in 2019.
As the leading expert in "emergency room” finance, Open Road stepped up to share its dollars and its knowledge with the wider community. With COVID-19, the market gap that Laurie had identified so many years ago was now at the forefront of everyone’s mind.
Stories of Impact
COVID-19
With a mission to keep impact on track in an unpredictable world, Open Road implemented its COVID-19 rapid response funding within the first week of the pandemic, quickly mobilizing fast and flexible financial assistance to social enterprises affected by COVID-19.