Convergence’s Design Funding is a unique market acceleration program providing early-stage grant funding focused exclusively on the design of innovative blended finance solutions. Despite the significant potential of blended finance, the reality is that often transactions are complex, time intensive, and high-cost to structure and launch. Design Funding is meant to support this process and encourage organizations to design solutions that would otherwise be too risky or complex to pursue, but show high potential to attract private capital at scale if successful.

Convergence operates multiple design funding windows with different thematic and geographic targets.

Addressing the spectrum of blended finance solution design activities, Convergence offers feasibility, study and proof-of-concept and expansion grants. Feasibility study grants are to be used to explore the feasibility of a blended finance solution. For example, activities funded under a feasibility study grant could include assessing the investability/bankability of a transaction, conducting market scoping, and developing the vehicle structure. Proof-of-concept grants are to be used to complete all design and structuring activities required to get a blended finance solution to launch. For example, activities funded under a proof-of-concept grant could include finalizing the capital structure and financial model, establishing the legal structure, and finalizing key documents. Expansion grants are used to support already launched vehicles to scale and reach a financially viable size. For example, activities funded under an expansion grant could include fundraising/marketing to reach capital-raising targets, producing key legal documents, due diligence on the initial pipeline and capital deployment and hiring of key personnel. Grant amounts and duration depend on the solution’s stage of development as well as the Design Funding window under which the grant is awarded.

Any organization or consortium of organizations is eligible to apply for funding. For example, eligible organizations could include asset owners, asset managers, financial intermediaries, advisory firms, financial institutions, foundations, not-for-profit organizations, social enterprises, and corporations. The lead organization must be able to provide proof of incorporation and financial statements for the previous fiscal year.

Multi-lateral organizations (e.g. United Nations Agencies) and development banks (e.g. World Bank Group, Development Finance Institutions (DFIs)) are not eligible to apply for or directly receive a grant but may be part of a consortium with private sector firm(s) and/or non-governmental organization(s) (NGOs) receiving a grant.

Visit our Design Funding page for Windows that are currently accepting applications. If you and your solution fit the eligibility criteria for an open Window, then please follow the instructions on the specific page to apply. Note that each solution can only be submitted to one Window.

It is the applicant’s responsibility to choose the Window for which their initiative is best suited. Visit our Design Funding page and navigate to individual Window pages to learn more about the focus areas and eligibility criteria for each Window. If an initiative is eligible under multiple Windows, organizations must select one Window to apply to. If an applicant has applied to one Window and has been rejected, they are able to apply to another Window with the same concept, provided they are also eligible under that Window. Organizations are able to apply to multiple Windows simultaneously with unique initiatives.