Mastercard’s Payal Dalal talks to us about the Strive EU Innovation Fund and the potential of digital tech in empowering small businesses.
Near the end of last month, the Irish Venture Capital Association (IVCA) revealed its latest VenturePulse report, detailing the current investment and VC landscape for Irish businesses. One of the most interest discoveries of the report was that even though investment in Irish small and medium enterprises (SMEs) reached a record €1.35bn in 2023, it fell by 16pc in the last quarter compared to the previous year.
Denise Sidhu, chair IVCA, said that this drop in funding is not surprising as it is consistent with a global decline in VC funding. This drop in funding also seemed to affect Irish tech companies.
With the investment and funding landscape displaying rocky statistics, the importance of supports for SMEs (particularly small businesses) is clear. Luckily, there are some initiatives around with the sole purpose of supporting small businesses.
One such initiative is the Strive EU Innovation Fund, which was revealed last November as a collaboration between Mastercard and the EU to fund projects hoping to provide solutions for small businesses across the continent. To find out more about the fund, we spoke to Payal Dalal, senior VP of social impact and international markets at Mastercard’s Center for Inclusive Growth.
Strive and thrive
But what is Strive? Dalal tells us that Strive, which is supported by Mastercard’s Center for Inclusive Growth, was conceived in 2021 as a “portfolio of philanthropic programmes aimed at helping small businesses around the world thrive in the digital economy”.
“Strive is the culmination of a decade of learning from, listening to, and iterating alongside the small business community,” she says.
While the Strive EU Innovation Fund was announced in November 2023, it recently opened for applications in January. The fund will provide equity-free grants of up to €500,000 for up to 20 projects from EU member states, as well as any technical assistance and mentoring they may need to accelerate the development of their solutions.
As well as funding, recipients of the Innovation Fund will also receive a number of benefits such as access to select resources from Mastercard’s start-up support programme, mentorship from influential experts within the small business ecosystem, and opportunities for exposure and publicity in collaboration with Mastercard and Strive.
But what sort of projects are suitable for the fund? Dalal says they are looking for solutions that are “digital and data-first” that align with one of four key focus areas: unlocking working capital and credit through embedded finance; going digital safely by bolstering cybersecurity; navigating evolving consumer preferences and regulatory expectations; and harnessing AI to save time and make money.
Dalal says that in order for projects to stand out, their solutions should clearly show their impact by addressing challenges faced by small businesses with fewer than 10 employees, as well as being able to differentiate themselves from existing solutions and demonstrating their potential to drive meaningful change.
“For those considering applying to the fund, my advice would be to tailor their proposals to align closely with the fund’s objectives and focus areas, clearly articulate the problem their solution aims to address and how they will address it, demonstrate how the solution can be applied, adapted or transferred more broadly, and lastly, consider how it could inspire others to similarly innovate on supporting small businesses.”
Digital potential
Dalal says that over the years of driving impact at the Center for Inclusive Growth, she has recognised the “immense” potential for digital technologies to power small businesses.
“From enhancing operational efficiencies to expanding market reach, digital tools offer unprecedented scalability and opportunities for resilience and growth.”
However, Dalal adds that harnessing this potential is not simple.
“Technologies and digital ecosystems need to cater to the diverse needs, capabilities and perspectives of small businesses,” she says. “Ensuring that small businesses can harness the full power of digital to thrive in today’s dynamic landscape is crucial for their long-term success and has the potential to help narrow economic divides in communities around the world.
“Strive EU takes an important step towards meeting these challenges and aims to support small businesses as they navigate the transition towards a more digital and sustainable economy.”
If you wish to apply for the Strive EU Innovation Fund, take a look here.
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