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Table of contents
PART I — GOVERNANCE & PURPOSE ................................................................................................... 4
Foreword from the Investment Committee Chair and the CEO ............................................................... 4
A Note from the Fund Manager ............................................................................................................... 5
1. Purpose of This Playbook ..................................................................................................................... 6
2. Madiro’s Mission and Investment Philosophy ..................................................................................... 7
3. Madiro Investment Criteria: Focus & Target Profile ............................................................................. 8
4. The Role of Venture Philanthropy & Catalytic Capital at Madiro ......................................................... 8
5. Mandate of the Investment Committee .............................................................................................. 9
6. Roles & Responsibilities ........................................................................................................................ 9
7. CRA Charitable Purpose, Public Benefit & Program-Related Investments (PRIs) ............................... 11
8. Unified Madiro Investment Process ................................................................................................... 12
9. Investment Cadence ........................................................................................................................... 14
10. Pipeline Development: ESOs & QDOs .............................................................................................. 14
PART II — IMPACT FRAMEWORK ...................................................................................................... 16
1. Why Impact Matters at Madiro .......................................................................................................... 16
2. The Four-Level Impact Framework ..................................................................................................... 17
3. Flexible Use — Companies Are NOT Expected to Operate in All Four Levels ..................................... 20
4. How Impact Anchors PRI Eligibility ..................................................................................................... 21
5. The Public Benefit Test (IC Tool) ......................................................................................................... 21
6. How the IC Assesses Impact — A Lean, Consistent Method .............................................................. 22
7. Reporting Readiness (DD Component) ............................................................................................... 23
8. IC Impact Templates ........................................................................................................................... 23
9. Example IC2 Impact Sections (Anonymized + Fictional) ..................................................................... 24
PART III — DECISION WORKFLOW & TEMPLATES ...................................................................... 25
1. Overview of Madiro’s Unified Investment Workflow ......................................................................... 26
PART V — EXEMPLARS .......................................................................................................................... 41
1. Executive Summary ............................................................................................................................ 41
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2. Strategic Fit With Madiro ................................................................................................................... 42
3. Key Risks ............................................................................................................................................. 43
4. Problem .............................................................................................................................................. 44
5. Solution .............................................................................................................................................. 44
6. Impact ................................................................................................................................................. 45
7. Theory Of Scale (1 Page) ..................................................................................................................... 47
8. Traction & Commercialization ............................................................................................................ 48
9. Market & Competition (1–1.5 Pages) ................................................................................................. 49
10. Team (1 Page) ................................................................................................................................... 51
11. Financials (1–2 Pages) ...................................................................................................................... 52
12. Deal Terms (1 Page) .......................................................................................................................... 54
13. Madiro Value Add (½ Page) .............................................................................................................. 55
14. Due Diligence Summary (1–2 Pages) ................................................................................................ 56
15. Recommendation ............................................................................................................................. 57
IC1 Two-Pager (Anonymized Example) .................................................................................................. 58
APPENDIX A — STREAMLINED DUE DILIGENCE CHECKLIST .................................................... 63
APPENDIX B — SITE VISIT SUMMARY TEMPLATE ........................................................................ 66
SITE VISIT SUMMARY — Madiro Due Diligence ..................................................................................... 66
APPENDIX C — PRI, SAFE, EQUITY & INSTRUMENT GUIDE ....................................................... 68
1. PROGRAM-RELATED INVESTMENTS (PRI) — Madiro Default ............................................................. 68
2. SAFE — Founder-Friendly & Flexible .................................................................................................. 69
3. EQUITY — When We Take a Stake in the Company ........................................................................... 69
4. CONVERTIBLE NOTES — Limited Use ................................................................................................. 70
5. LOANS / DEBT — Rare Use Case ......................................................................................................... 70
APPENDIX D — PUBLIC BENEFIT TEST (Full Reference) ........................................................... 70
APPENDIX E — GLOSSARY .................................................................................................................... 71
PART V — SECTION 4: QUICK IC REFERENCE ................................................................................. 72
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PART I — GOVERNANCE & PURPOSE
Foreword from the Investment Committee Chair and the CEO
Adrian Schauer, Chair, Investment Committee
James Fraser, President & CEO
Madiro was created with a simple belief: healthier people can build better futures. When
individuals have access to reliable, affordable, and high-quality healthcare, everything
changes—families become more resilient, communities become stronger, and opportunity
expands.
Across Africa, innovators are building solutions to some of the most entrenched health
challenges faced by underserved populations. These founders need a partner who understands
the complexity of health systems, is willing to take early risk, and is committed to impact-first
investing. That is where venture philanthropy and catalytic capital play a vital role.
At Madiro, we deploy charitable capital—flexible, patient, and evergreen—to support founders
who are improving health outcomes, strengthening health systems, advancing access to health
services, creating dignified employment for entrepreneurs and their teams, and contributing to
improved health and prosperity across the continent.
The Investment Committee (IC) is essential to this work. Your experience, independence, and
judgment ensure that we make investments that are both impactful and responsible. You help
us evaluate opportunities carefully, challenge assumptions thoughtfully, and steward capital in
ways that meaningfully advance public benefit.
This Playbook is meant to support you in that task. It reflects who we are—rigorous but not
bureaucratic, practical but ambitious, grounded in local realities, and deeply committed to
improving health across the continent.
Thank you for lending your time, insight, and wisdom to this mission.
— Adrian & James
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A Note from the Fund Manager
Sharon Batamuriza, Portfolio & Fund Manager
Our work sits in complex, dynamic environments. Early-stage founders in African health markets
face barriers that are technical, regulatory, operational, and financial. The IC provides a vital
balance to this complexity—ensuring that our optimism remains grounded, our diligence
remains sharp, and our decisions remain anchored in impact.
Because Madiro is still early in its growth, our investment process is intentionally lean and
unified across stages. I currently serve as both Fund Manager and Deal Lead, guiding
opportunities from first screening through due diligence, site visits, and IC preparation. As we
expand our team, these roles will eventually differentiate, but for now our process reflects the
reality of a small, focused investment team.
Thank you for supporting this work and for helping us build a thoughtful, disciplined investment
practice that reflects the best of Madiro.
— Sharon
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1. Purpose of This Playbook
This Playbook provides a clear and consistent foundation for how Madiro evaluates investment
opportunities and how the Investment Committee conducts its work.
It consolidates:
● The unified 7-step investment process
● Roles and responsibilities
● Investment Committee 1 (IC1) and IC2 templates
● Due diligence expectations
● Impact assessment and CRA compliance
● Governance principles
● Madiro’s approach to venture philanthropy and catalytic capital
● Decision-making tools and scorecards
● Examples of high-quality IC materials (anonymized)
● Pipeline development categories (ESOs & QDOs)
The goal is to ensure that every decision made by the IC is:
● Mission-aligned
● Charitably compliant (PRI framework)
● Evidence-based & practical
● Consistent
● Lean but rigorous
● Supportive of founders and health system realities
This document is a practical resource, not a rigid set of rules. It will evolve as Madiro grows.
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2. Madiro’s Mission and Investment Philosophy
Madiro is an evergreen philanthropic impact investment fund supporting early-stage healthcare
innovations in Africa. We invest at the pre-Seed (exceptionally), Seed, and Series A (follow-
on) levels, with cheque sizes typically ranging from USD $100k to $500k.
Our investment philosophy is defined by six core principles:
1. Impact First
We invest in companies improving healthcare access, affordability, quality, and outcomes.
2. Venture Philanthropy
We apply venture discipline to charitable investment—rigorous diligence, speed, iteration, and
attention to scale.
3. Catalytic Capital
We invest early, flexibly, and patiently, enabling companies to gain traction long before
commercial capital is available.
4. Evergreen Fund Structure
All returns are recycled into new PRIs, strengthening long-term sustainability.
5. Human-Centered Practicality
We work within real health system constraints and support founders navigating complexity.
6. Lean Rigor
Our process is unified and light—rigorous in substance, not bureaucratic in form.
These principles guide every investment, every DD conversation, and every IC decision.
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3. Madiro Investment Criteria: Focus & Target Profile
Stages: pre-Seed (exceptionally), Seed, and Series A (follow-on)
Ticket size: US$100k–500k per initial investment.
Geography: Africa, especially Sub-Saharan Africa.
Innovation categories:
- digital health
- health financing
- supply-chain and procurement
- emergency care and referral systems
- tech enabled healthcare delivery
- diagnostics
- product innovation for resource-constrained settings
Filters: tech-enabled efficiency, strong patient engagement, tight tech–health linkages, and
reach into remote / rural and underserved populations.
4. The Role of Venture Philanthropy & Catalytic Capital at
Madiro
Venture philanthropy and catalytic capital allow Madiro to operate differently from traditional
grantmakers or commercial investors.
Venture Philanthropy enables us to:
● Support early-stage companies building high-impact solutions
● Invest in teams that need flexibility to iterate
● Provide follow-on support through governance, TA, and connections
● Focus on long-term system change rather than short-term financial returns
● Hold board observer or director roles to support good governance
Catalytic Capital enables us to:
● Take risk where the public benefit is high
● Crowd in commercial co-investors at later stages
● Unlock productivity by helping companies cross their early traction gap
● Pursue investments that strengthen health systems at scale
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Together, these approaches allow Madiro to deploy charitable dollars where they are most
needed, accelerating innovations that can improve the lives of millions.
5. Mandate of the Investment Committee
The Investment Committee provides independent oversight, judgment, and decision-making on
all investment opportunities.
The IC is responsible for:
● Evaluating investment proposals at IC1 and IC2
● Ensuring each investment qualifies as a Program-Related Investment (PRI)
● Assessing alignment with Madiro’s mission and charitable purposes
● Evaluating impact, scale potential, and public benefit
● Identifying risks and assessing mitigations
● Voting on final investment decisions
● Supporting follow-on decisions when needed
The IC does not do:
● Operational management of companies
● Day-to-day founder interactions
● Portfolio management
● Fundraising
● Investment sourcing
Those tasks sit with management.
Decision Independence
IC members provide impartial evaluation.
Management (CEO, Fund Manager) participate in discussion but do not vote.
6. Roles & Responsibilities
IC Chair (Adrian Schauer)
● Facilitates high-quality, balanced discussions
● Ensures independent judgment and fair process
● Upholds governance standards
● Guides consensus and exercises tie-breaking when needed
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IC Members (Anouk Hilti-Zingg, Monica Kahindo, Jesse Moore, Gillian
Morantz, Gerhard Pries, Adrian Schauer) - voting
● Review all IC materials ahead of meetings
● Apply independent judgment
● Evaluate mission alignment, impact, risk, and viability
● Identify gaps, raise questions, and challenge assumptions
● Vote on investments (approve / approve with conditions / decline)
CEO (James Fraser) — Non-Voting
● Provides strategic insight and context
● Participates in due diligence
● Co-develops investment theses
● Supports deal structuring
● Ensures charitable and CRA alignment
● Represents Madiro on boards or as observer. Madiro typically assumes a board
observer or director role in portfolio companies to support governance, mission
alignment, and scale.
● Stewards post-investment relationships
Rationale:
The CEO co-leads deals and is therefore not independent; non-voting status protects
governance integrity.
Fund Manager / Deal Lead (Sharon Batamuriza) - Non-Voting
● Leads sourcing, screening, and deal evaluation
● Manages DD, data rooms, and IC materials
● Coordinates site visits
● Presents deals at IC1 and IC2
● Leads the IC1 two-pager and IC2 memo
● Oversees post-investment monitoring
Legal Councel (Thomas Laporte-Aust) - Non-Voting
● Supports term sheets
● Validates SAFE, convertible, and PRI structures
● Ensures compliance with CRA and corporate requirements
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Impact Measurement Committee (Future State)
Madiro intends to establish this committee as the portfolio grows.
Until then, impact validation is carried out jointly by the CEO and Fund Manager.
7. CRA Charitable Purpose, Public Benefit & Program-
Related Investments (PRIs)
All Madiro investments are made as Program-Related Investments (PRIs) under CRA
guidelines. This allows Madiro to classify deal sourcing, due diligence, investment execution,
and post-investment support as charitable program activity.
A PRI must:
1. Further a charitable purpose (in Madiro’s case: improving health)
2. Provide a clear public benefit
3. Only incidentally benefit private individuals or shareholders
4. Be made at below-market expectations
5. Be structured so that charitable purpose is primary
Incidental Private Benefit — Defined
A private benefit is incidental if it is:
● Necessary for achieving the public benefit
● Reasonable in magnitude
● Proportionate to the broader public good created
● Secondary to the charitable impact
For example, founders gaining equity value is incidental because their innovation expands
access to essential health services.
Public Benefit Test (Integrated into IC Templates)
The IC ensures that every investment:
● Expands access
● Improves outcomes
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● Strengthens health systems
● Benefits populations experiencing barriers to care
● Maintains proportionality between public benefit and private gain
This is light but essential governance.
8. Unified Madiro Investment Process
This unified process applies to all investments at all stages.
Step 1 — Initial Screen (via Website Form)
Companies complete Madiro’s online initial screening template.
The Deal Lead assesses:
● Impact fit
● Mission alignment
● Feasibility
● Geographic fit
● Red flags
Outcome Options:
● Qualify
● Reject
● Watch (with Why / What / When)
Step 2 — Preliminary Analysis
● Intro call
● Light desk research
● Optional expert consultation
● Internal notes
(No memo produced.)
Step 2.1 — Initial Financial Screen
Lean assessment of financial viability:
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● Revenue logic
● Gross margin expectations
● Valuation sanity check
● Capital needs + runway
● Early traction
● Cap table red flags
Step 3 — IC1 (Devil’s Advocate)
Deal Lead prepares:
● IC1 Two-Pager
● Public Benefit Test (1 paragraph)
IC evaluates:
● Fit
● Impact potential
● Risks
● Thesis coherence
Decision:
● Qualifyto DD
● Watch
● Decline
Step 4 — Commercial Due Diligence + Site Visit
Deal Lead completes:
● Streamlined DD Checklist
● 2–3 page DD Summary
● Site visit report (if conducted)
Step 5 — IC2 (Final Decision)
Deal Lead presents:
● IC2 Investment Memo (12–15 pages)
● IC2 Scorecard
IC votes.
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Step 6 — Contracting
Using Madiro’s standard instruments:
● PRI (primary)
● SAFE
● Equity
● Convertible
Madiro typically assumes a board observer or director role.
Step 7 — Post-Investment Monitoring & TA
● Quarterly updates
● Biannual impact survey
● TA support
● Board/observer participation
9. Investment Cadence
Madiro’s IC currently operates on an ad hoc cadence, driven by:
● Available capital
● Pipeline maturity
● DD progress
● Urgency of opportunity
As the fund grows, cadence is expected to stabilize into a regular rhythm.
10. Pipeline Development: ESOs & QDOs
Madiro maintains a Deferred Pipeline Track to support companies that are mission-aligned but
not yet investable due to capital timing.
Emerging Strategic Opportunities (ESO)
● Strong early potential
● May have passed IC1
● Impact + thesis aligned
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● DD light or partial
● Included in fundraising materials when appropriate
Qualified but Deferred Opportunities (QDO)
● Fully passed IC1
● Substantial DD completed
● Strong alignment with mission, impact, and scale
● Deferred solely due to capital constraints
This ensures pipeline discipline, strategic clarity, and strong storytelling to donors.
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PART II — IMPACT FRAMEWORK
1. Why Impact Matters at Madiro
Impact is the purpose of Madiro’s work, the anchor of our investment philosophy, and the
foundation for deciding whether an opportunity qualifies as a Program-Related Investment
(PRI) under CRA guidelines.
We invest in early-stage innovations building solutions to pressing health challenges across
Africa. These companies often operate in fragile systems, under resource constraints, and in
environments where incremental improvements in access, reliability, affordability, and quality
can change lives instantly.
Impact matters because:
1. It advances Madiro’s charitable purpose.
Every PRI must further a charitable objective — in our case, improving health and advancing
public benefit.
2. It ensures CRA compliance.
CRA requires that every PRI:
● furthers a charitable purpose
● generates clear public benefit
● keeps prvate benefit incidental
Impact is the evidence base for demonstrating this.
3. It focuses the IC on what truly matters.
We invest in companies improving:
● access
● quality
● outcomes
● affordability
● system reliability
● efficiency
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Not every company will excel in every dimension, but each must deliver meaningful public
benefit through improved health.
4. It supports accountability and donor reporting.
Your impact survey and Impact Reports rely on metrics such as:
● lives impacted
● health facilities reached
● CHWs supported
● direct jobs created
● indirect jobs created
● household members benefiting
● geographic reach
Impact allows Madiro to demonstrate progress transparently and credibly.
5. It grounds the fund in real health system dynamics.
Impact is not abstract. It reveals whether an innovation makes a tangible difference in the lives
of patients, workers, and communities.
2. The Four-Level Impact Framework
(from Madiro’s Impact Measurement Handbook)
This framework helps us understand the broad scope of health-related impact across the value
chain. IC evaluations should consider both Theory of Change (is the intervention logically
capable of producing the intended health outcomes?) and Theory of Scale (can it scale
sustainably?). We prioritize innovations that fall within Madiro Technology Levels 1–4 — late
R&D, pilot, or early-scale, rather than idea-stage concepts.
It is flexible, not mandatory — companies may operate in 1, 2, 3, or all 4 levels, depending
on the model.
✔ This is not a checklist.
✔ It is a lens to understand impact where it actually exists.
The four levels:
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LEVEL 1 — Healthcare Facilities
Definition: How the innovation improves the quality, efficiency, or capability of health facilities
(clinics, pharmacies, hospitals, labs).
Examples of impact:
● reduced stockouts
● improved diagnostic accuracy
● decreased wait times
● reduced facility operating costs
● increased availability of essential health commodities
● improved cold chain reliability
● better patient triage and referral coordination
Example (anonymized real): A digital pharmacy network increases fill-rates across 1,800
pharmacies in Nigeria, improving access to essential medicines and reducing wait times.
Example (fictional): A solar-powered diagnostics hub provides continuous ECG and
hemoglobin testing in peri-urban clinics without grid electricity.
LEVEL 2 — Health Workers & Health Entrepreneurs
Definition: Impact on CHWs, midwives, clinicians, pharmacists, emergency responders, and
other frontline or community-based providers.
Examples of impact:
● training and upskilling
● increased incomes for CHWs
● reduced administrative burden
● improved case management
● expansion of reach
● reduced burnout
● professionalization of informal health workers
Jobs Created (Direct): This is the primary level where direct job creation appears.
Examples:
● CHW franchisees
● pharmacy entrepreneurs
● emergency responders
● nurses and paramedics
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● logistics and field operations staff
● health facility staff supported via capacity-strengthening models
Example (anonymized real): A CHW franchise raises CHW incomes by 70% and supports
over 20,000 health entrepreneurs across East Africa.
Example (fictional): An AI-powered maternal risk triage tool reduces midwife workload by
automating early screening and improves training outcomes.
LEVEL 3 — Patients / End-Customers
Definition: Direct improvements to people receiving care, medicines, services, or essential
health commodities.
This is often the most visible form of impact.
Examples of impact:
● reduced emergency response delays
● improved maternal health outcomes
● access to essential medicines
● reduced cost of care
● increased treatment adherence
● improved diagnosis at point-of-care
● improved management of chronic disease
● increased access to essential FMCGs (e.g., OTC meds, sanitary products)
● access to essential health commodities (e.g., eyeglasses, water filtration, birth kits)
Example (anonymized real): An emergency care provider reduces emergency response times
by 40–80%, covering 43,000 lives under corporate contracts and reaching 70,000 individuals.
Example (fictional): A maternal health mobile platform helps identify emergency symptoms
earlier, decreasing postpartum hemorrhage referrals by 15%.
LEVEL 4 — Household Members
Definition: Indirect benefits to families and dependents resulting from improved health, reduced
cost, or enhanced economic stability.
Examples of impact:
● reduced catastrophic health expenditure
● reduced caregiver burden
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● reduction in travel time for essential health commodities
● improved household income stability
● improved productivity of caregivers
● increased consumption of basic FMCGs
● improved long-term financial resilience
Jobs Created (Indirect):
Appears here if:
● household productivity increases
● caregivers are able to return to work
● households avoid catastrophic expenses that cause job loss
Example (anonymized real): A home-based dialysis and nursing service reduces hospital
visits by 90%, freeing up caregivers to maintain employment and reducing costs for families.
Example (fictional): A low-cost water purification solution reduces household illness, enabling
families to save on medication and missed workdays.
3. Flexible Use — Companies Are NOT Expected to Operate
in All Four Levels
This must be clear:
✔ A company may have impact only at Level 3 (patients).
✔ Another may have impact at Level 2 and Level 4.
✔ Others may start at one level and expand to others as they scale.
The IC only evaluates the levels that actually apply, based on evidence from DD and the
proposal.
This flexibility ensures:
● no artificial inflation of impact
● no pressure on founders to “fit” a model
● honest and practical evaluation
● smooth CRA alignment
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● consistent reporting
4. How Impact Anchors PRI Eligibility
Every Madiro investment is a PRI.
CRA requires:
1. Charitable Purpose
Investment must further health-related public benefit.
2. Public Benefit > Private Benefit
Impact must clearly outweigh shareholder gain.
3. Incidental Private Benefit
Private gain must be necessary, reasonable, and proportionate.
Impact provides the evidence.
The IC therefore asks:
1. What health gap does the innovation address?
2. Who benefits?
3. How meaningful is the benefit?
4. Is the benefit scalable?
5. Is any private benefit incidental?
This is summarized in the Public Benefit Test included in all IC1 and IC2 templates.
5. The Public Benefit Test (IC Tool)
A short paragraph included in IC1 and IC2:
1. Charitable Purpose: How the innovation improves health (access, quality, outcomes).
2. Public Benefit: What improvements will be experienced by facilities, workers, patients,
or households.
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3. Incidental Private Benefit: Affirms that any shareholder gain is a necessary,
proportionate by-product.
Example:
“This investment furthers Madiro’s charitable purpose by improving emergency
maternal care access in underserved regions. The public benefit — reduced
preventable deaths and improved response capacity — clearly outweighs any private
benefit to shareholders. Founder benefit is incidental and necessary to incentivize
scale.”
6. How the IC Assesses Impact — A Lean, Consistent Method
The IC evaluates:
A. Relevance
Does the solution address a real and significant health need?
B. Depth
Does it materially improve access, affordability, quality, or outcomes?
C. Scale Potential
Can the model reach thousands or millions over time?
D. Evidence
Is there early proof of traction, demand, or clinical relevance?
E. Reporting Readiness
Can the company participate in Madiro’s biannual Impact Survey?
F. Jobs Created
(optional)
Direct and indirect jobs are noted when relevant.
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7. Reporting Readiness (DD Component)
Companies should demonstrate:
● The ability to track patient/customer numbers
● Ability to report facility or CHW engagement
● Ability to estimate lives impacted
● Ability to report direct and indirect jobs created (if relevant)
● Basic capacity for outcome reporting
● Ability to respond to Madiro’s Impact Survey twice a year
This is light and designed to match early-stage realities.
8. IC Impact Templates
IC1 Impact Template (Short Form)
Impact Overview (2–3 sentences):
State intended health impact and who benefits.
Applicable Levels:
☐ Facilities
☐ Health Workers
☐ Patients
☐ Households
(Check all that apply.)
Public Benefit Test (2–3 sentences)
Short justification linking to charitable purpose.
Optional Metrics:
● Lives impacted: ____
● Direct jobs created: ____
● Indirect jobs created: ____
● CHWs / workers engaged: ____
● Facilities reached: ____
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IC2 Impact Template (Full Form)
1. Impact Overview (one paragraph)
2. Applicable Impact Levels (short subsection each)
Describe only the levels that apply.
3. Impact Metrics (current & projected)
May include:
● Patients reached
● Facilities served
● CHWs supported
● Direct jobs created
● Indirect jobs created
● Emergency response times
● Monthly active users
● Prescriptions filled
● FMCG/commodity access
● Maternal outcomes
● Chronic disease adherence
4. Public Benefit Test
(Short paragraph)
5. Reporting Readiness
Light assessment of data systems and feasibility.
9. Example IC2 Impact Sections (Anonymized + Fictional)
Example A — Digital Pharmacy (Anonymized Real)
Levels 1 & 3
Impact Overview:
Improves access to essential medicines through a digital pharmacy infrastructure serving
underserved populations.
Levels:
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● Facilities: 1,800 pharmacies connected; reduced stockouts
● Patients: ~50,000 monthly prescriptions
● Direct Jobs Created: 200+ pharmacy agents trained
Public Benefit Test:
Public benefit is substantial (expanded medicine access, reduced disease burden). Private
benefit is incidental.
Example B — Emergency Medical Services (Anonymized Real)
Levels 2 & 3
Levels:
● Health Workers: 1,600 CBFRs trained
● Patients: 40–80% reduction in EMS response time
● Direct Jobs Created: 36 full-time staff
● Indirect Jobs Created: caregiver employment preserved through timely intervention
Example C — Maternal Health AI (Fictional)
Levels 3 & 4
Levels:
● Patients: early detection of obstetric emergencies
● Households: reduced catastrophic expenses
● Indirect Jobs Created: improved parental capacity to return to work
PART III — DECISION WORKFLOW &
TEMPLATES
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1. Overview of Madiro’s Unified Investment Workflow
The workflow below applies across all stages (Pre-Seed, Seed, and Series A follow-on).
It is intentionally lean, rigorous, and founder-friendly.
STEP 1 — Initial Screen (via website form)
STEP 2 — Preliminary Analysis (call + internal review)
STEP 2.1 — Initial Financial Screen
STEP 3 — IC1 (Devil’s Advocate)
STEP 4 — Commercial & Legal Due Diligence + Site Visit
STEP 5 — IC2 (Final Decision)
STEP 6 — Contracting
STEP 7 — Post-Investment Monitoring & Support
Each step is described in detail below, followed by templates.
STEP 1 — Initial Screen (via Website Form)
Companies begin by completing Madiro’s Initial Screening Template on the website.
This allows the Deal Lead to assess early alignment.
Screening Questions Cover:
● What problem is addressed?
● Who benefits?
● What is the solution?
● Evidence of need / traction
● Country of operation
● Stage
● Team background
● Early revenue (if any)
● Unit economics (if known)
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● Competition
● Alignment with Madiro’s mission
● High-level impact potential
Deal Lead reviews, and categorizes the opportunity into Qualify/ Reject / Watch.
The “WATCH” Mechanism (Internal Only)
Used for promising but not yet investable opportunities.
The Deal Lead completes:
WATCH — WHY (Current Limitation)
Examples:
● Too early; lacks traction
● Technology readiness level too low
● Needs pilots
● Needs regulatory clarity
● Model incomplete
● Round not yet formed
● Valuation unrealistic
● Team not complete
WATCH — WHAT (2–3 Required Milestones)
Examples:
● Secure 2–3 pilot partners
● Demonstrate 90 days of recurring revenue
● Validate regulatory classification
● Close 30–40% of round
● Produce updated deck + financials
WATCH — WHEN (Next Review Date)
60–120 days depending on context.
Watch does NOT involve DD or IC involvement.
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STEP 2 — Preliminary Analysis
If “Qualify,” Deal Lead conducts:
● Founder call
● Light desk research
● Internal review
● Optional external expert call
This step is quick; no memo produced.
STEP 2.1 — Initial Financial Screen (Lean)
A fast reality check based on:
Value Proposition:
Does the product deliver a clear, differentiated benefit that customers urgently need and are
willing to pay for?
Revenue Logic
Is the revenue model coherent?
Gross Margin Expectation
Does the business model have viable margins over time?
Valuation Sanity
Is the valuation broadly reasonable?
Burn + Runway
Can the company last 6–12 months after raise?
Round Structure
Is the round size feasible?
Cap Table Red Flags
Any problematic structures?
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Outcome Options:
● Clear for IC
● Hold (return to Watch)
● Reject
No modeling. No heavy analysis. Lean and judgment-driven.
STEP 3 — IC1 (Devil’s Advocate)
IC1 is a light meeting focused on:
● Mission fit
● Charitable purpose
● Impact potential
● Risks
● Team
● Early viability
● Whether full DD is warranted
IC1 Materials:
● IC1 Two-Pager (structured below)
● Public Benefit Test (short paragraph)
IC1 Decision:
● Qualifyto DD
● Watch
● Decline
IC1 TEMPLATE (Two-Pager)
PAGE 1
1. Summary
1–2 paragraphs describing the company, problem, solution, and model.
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2. Key Facts
● Country
● Sector
● Stage
● Year founded
● Website
● Raise amount
● Valuation
● Madiro ticket (expected)
● Revenue (if any)
● Last month/quarter KPIs
3. Problem & Solution
Short, crisp articulation of the health problem and how innovation addresses it. Other
components on this include, the business/pricing model and target market.
4. Traction (Evidence)
● Revenue
● Contracts
● Pilots
● Users
● Deliveries
● Prescriptions
● Facilities reached
PAGE 2
5. Impact (Short Form)
● 2–3 sentence overview
● Applicable levels:
☐ Facilities
☐ Health workers
☐ Patients
☐ Households
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● Optional metrics:
○ Lives impacted
○ Direct jobs created
○ Indirect jobs created
○ Facilities served
○ CHWs trained
6. Risks / Reservations
3–5 bullet points.
7. Potential Synergies
Which Madiro portfolio companies, programs, or partners are relevant?
8. Why Madiro Should Invest
1 paragraph.
9. Public Benefit Test
2–3 sentences:
● Charitable purpose
● Public benefit
● Incidental private benefit
10. IC1 Scorecard (Simple)
The IC can use this Investment thesis & IC Evaluation Criteria as a guide
Each scored 1–5:
● Problem clarity
● Mission fit
● Impact potential
● Traction
● Team
● Risk level (inverse score)
● Financial viability
● Readiness for DD
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Total Score: __ / 40
STEP 4 — Commercial Due Diligence (DD)
Once IC1 approves, Deal Lead begins DD.
DD Inputs Includes:
● Streamlined DD Checklist
● Documents in data room
● Calls with founders
● References
● Market validation
● Regulatory confirmation
● Product demo
● Contract review
● Site visit (if appropriate)
DD should remain lean and matched to stage.
Streamlined DD Checklist (Merged & Updated)
(Internal tool — summarized here, precise in appendix)
1. Corporate + Governance
● Incorporation documents
● Ownership & cap table
● Board / Governance structure
● Directors
● Litigation (if any)
2. Financials + Round Structure
● Revenue + expenses
● Unit economics
● Projections
● Use of funds
● Past fundraising
● Bank statements (when appropriate)
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3. Commercial + Market
● Sales pipeline
● Contracts
● Competition
● Market size
● Pricing
● GTM strategy
4. Product + Tech + Operations
● Architecture overview
● Product demo
● Regulatory requirements
● Quality assurance
● Supply chain
● Pharmacy or CHW networks
● Essential commodities or FMCG logistics (if applicable)
5. Impact + Public Benefit (PRI)
● Impact levels (1–4)
● Impact metrics
● Public Benefit Test
● Private benefit incidental test
● Reporting readiness
6. Legal + Compliance
● SAFE / equity structure
● PRI eligibility
● Key contracts
● Insurance
● Legal counsel
DD produces 2–3 page summary.
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DD SUMMARY TEMPLATE (2–3 Pages)
1. Overview
Key facts and summary of DD findings.
2. Key Strengths
3–5 bullet points.
3. Key Risks
4–6 bullet points (regulatory, operational, financial, tech, impact).
4. Impact Assessment
Levels + metrics.
5. Public Benefit Test
Short paragraph.
6. Reporting Readiness
Checklist.
7. Recommendation for IC2
Qualify/ Qualifywith conditions / do not Qualify.
STEP 4 — Site Visit Summary (Optional Appendix)
If conducted:
Site Visit Summary Includes:
● Date, location
● Agenda
● Departments visited
● Observations
● Operational insights
● Founder dynamics
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● Facility readiness
● Evidence of impact
● Photos (optional)
● Key risks observed
A simple 1–2 page format.
STEP 5 — IC2 (Final Investment Decision)
IC2 Goal:
Support the IC in making a well-informed, mission-aligned, charitably compliant investment
decision.
IC2 Documents:
● IC2 Investment Memo (12–15 pages)
● IC2 Scorecard (1 page)
● DD Summary (appendix)
● Term Sheet (appendix)
● Site Visit Summary (appendix)
● Financial model (appendix)
IC2 INVESTMENT MEMO TEMPLATE (12–15 pages)
1. Executive Summary (½ page)
● Company overview
● Raise + valuation
● Proposed Madiro ticket
● Instrument (PRI via SAFE/equity)
● Recommendation
● Why now
2. Strategic Fit with Madiro (½ page)
● Mission alignment
● Charitable purpose
● Health gap addressed
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● Public benefit overview
3. Key Risks (1 page)
● Regulatory
● Competitive
● Financial
● Operational
● Technological
● Impact
● Mitigations
4. The Problem (1 page)
Crisp, health-systems-grounded explanation.
5. The Solution (1 page)
Product, model, distribution, innovation.
6. Impact (1–1.5 pages)
● Applicable levels (1–4)
● Impact metrics (current + projected)
● Direct jobs created (if relevant)
● Indirect jobs created (if relevant)
● Essential commodities / FMCG access (if relevant)
● Public Benefit Test
7. Theory of Scale (1 page)
● Path to scale
● Key scale enablers
● Key dependencies
● Challenges
8. Traction & Commercialization (1–1.5 pages)
● KPIs
● Contracts
● Pilots
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● Revenues
● Pipeline
9. Market & Competition (1–1.5 pages)
● Market size
● Competitors
● Moats
● Adoption barriers
10. Team (1 page)
Short bios (no long paragraphs).
11. Financials (1–2 pages)
● Historicals
● Projections
● Margins
● Drivers
● Sensitivities
● Capital strategy
● Valuation rationale
12. Deal Terms / Structure (1 page)
● Ticket
● Instrument
● Post-money
● Rights
● Board observer role
13. Madiro Value Add (½ page)
Where Madiro can help.
14. DD Summary (1–2 pages)
Key findings only.
15. Recommendation
Clear statement.
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IC2 Scorecard (1 Page)
Each scored 1–5:
1. Problem significance
2. Mission alignment & PRI eligibility
3. Impact depth
4. Scale potential
5. Business model viability
6. Traction
7. Team
8. Financial health
9. Regulatory/Operational risk
10. Reporting readiness
Total Score: __ / 50
IC Vote:
☐ Approve
☐ Approve with Conditions
☐ Decline
STEP 6 — Contracting
All investments are structured as PRIs using:
● Equity
● SAFE
● Convertible
● PRI Agreement
Madiro typically assumes:
● A board observer or
● A board seat
depending on the situation.
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STEP 7 — Post-Investment Monitoring
Quarterly Updates
● Performance
● Risks
● Financial health
● Key wins / challenges
Biannual Impact Survey
(Per Impact Measurement Handbook)
TA Support
As needed.
Board/Observer Role
Active engagement.
Pipeline Development (ESO + QDO Track)
Madiro maintains a structured Deferred Pipeline:
1. Emerging Strategic Opportunities (ESO)
● High potential
● Not fully vetted
● May appear in decks when appropriate
2. Qualified but Deferred Opportunities (QDO)
● Fully
● Passed IC1
● Deferred only due to capital constraints
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This ensures pipeline quality and supports fundraising narratives.
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PART V — EXEMPLARS
IC2 INVESTMENT PROPOSAL (ANONYMIZED FICTIONAL EXAMPLE)
HealthBridge Africa (Kenya)
(Draft for Review — Version 1)
1. Executive Summary
Company: HealthBridge Africa Ltd.
Country: Kenya
Sector: Digital Pharmacy, Community Health, Emergency Referral
Stage: Seed
Instrument: PRI via Equity
Raise: USD $1,250,000
Committed: $600,000
Valuation (Pre-money): $6,000,000
Madiro Proposed Ticket: $150,000
Use of Qualifys: Product development, CHW expansion, pharmacy network integration,
emergency referral module, and core team hiring.
Overview
HealthBridge Africa is a Kenya-based digital health platform integrating pharmacy access, last-
mile CHW delivery, and emergency referral into a unified system serving low-income urban and
peri-urban communities. Through a combination of mobile ordering, CHW support, emergency
stabilization training, and partnerships with private clinics and pharmacies, HealthBridge
improves access to essential medicines, maternal and chronic care support, and emergency
response.
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Why Now
Kenya’s peri-urban communities experience medication stockouts, inconsistent pharmacy
pricing, long emergency response times, and high out-of-pocket spending. HealthBridge has
achieved meaningful early traction, with strong potential to scale through government, NGO,
and employer partnerships.
Recommendation
Approve investment of $150,000 in HealthBridge Africa as a Program-Related Investment (PRI)
via equity. Company demonstrates strong mission alignment, clear public benefit, and a viable
pathway to scale.
2. Strategic Fit With Madiro
Mission Alignment
HealthBridge directly supports Madiro’s charitable purpose by improving access to essential
medicines, emergency stabilization, and chronic care services for underserved Kenyan
populations. The company addresses structural inefficiencies in peri-urban health systems,
reducing financial and health burdens on patients and their families.
Charitable Purpose & Public Benefit
The innovation strengthens the health system by:
● Increasing the availability and affordability of essential medicines.
● Improving emergency stabilization and referral in low-income areas where ambulance
coverage is minimal.
● Empowering CHWs with tools, training, and income opportunities.
● Serving patients facing barriers to care and high out-of-pocket expenditure.
PRI Justification
Private benefit (equity value for founders) is incidental and necessary to scale the platform. The
dominant purpose is improving public health. Equity is offered below market expectations and
incl...
