iSME Programme

It is a hybrid. The vehicle was established with a sovereign World Bank loan routed through Lebanon's central bank and operated by Kafalat, a public guarantee company. However, it deploys capital through commercial-style equity and co-investment instruments, and its underwriting evaluates venture-scale return potential alongside development metrics.

iSME matches accredited angel investors dollar-for-dollar up to a per-company ceiling, effectively doubling the equity ticket available to qualifying startups. The programme screens and approves both the company and the lead angel, and the investment is structured on the same terms for both the angel and the iSME co-investment vehicle.

Kafalat is the administrator and institutional home of the iSME Programme. Kafalat itself is Lebanon's primary credit-guarantee issuer for SME bank loans, established by the central bank. iSME operates as a dedicated investment programme within Kafalat, with its own dedicated team and investment committee.

The programme's mandate is Lebanon-focused, with most portfolio companies headquartered in Beirut. Select exposure to Lebanese diaspora-founded startups in the UAE and Europe has occurred, typically in cases where the operating presence or founding team retains strong ties to Lebanon.

iSME covers seed and early-stage growth, with equity tickets generally ranging from $200,000 to $1 million. The programme has also provided follow-on capital to select portfolio companies, though it was not structured as a multi-stage fund and its primary remit is the initial institutional equity gap.