New forms of financing

shifting from reactive to proactive financing

We believe that by providing funding fast, early, in a collaborative way – and by providing it based on need and not on media headlines or political will - we can help responders and communities to become better prepared to act in a crisis. In short, fast funds in the right place at the right time, saves lives.

Photo credit: Delgermaa Altangerel/Save the Children Mongolia

Shifting from reactive to proactive financing

A Family of Funds

 

Our network of networks will be underpinned by a family of funds and financial services in order to pool investment and risk and help more communities at a reduced cost.

 

The network will use Start Network's financing facility, which includes Start Funds and Start Ready, to support its membership in accessing fast funds to respond to small and medium-sized crises and in putting in place pre-arranged funds and financing that can facilitate more timely, proactive or risk-informed crisis action. It will do so while ensuring these funds are increasingly accessible to the local and national actors joining the network.

 

There is increasing evidence that shifting the focus from response to protecting people ahead of shocks, and relying on pre-agreed plans and finance, is a faster, more dignified and more cost-effective approach to disasters and crises. There is a need for coherence, connectivity and scale to support the efforts of frontline humanitarian responders to be better financially prepared in advance of crises.

 

Start Network will address this by supporting inclusive locally-led structures, to own, develop and implement financing strategies and systems in their contexts. We will do this by working with them on the operational, technical and partnership aspects to build their own Start Funds or disaster risk financing initiatives.

 

We will also scale our flagship global Start Fund, and support the growth of national funds, such as Start Fund Bangladesh and others, to respond to small to medium scale crises that are often overlooked by humanitarian donors. Scaling will include increasing overall funding levels, further streamlining and automating its processes and improving its accessibility for national and local members. The anticipatory work of all Start funds will also continue to be a priority, mitigating the impact of humanitarian crises on lives and livelihoods by making funding available ahead of a crisis. 

 

We will bring together all of Start Network’s experience and learning over the past six years into a single instrument, Start Network's financing facility,  marrying the proven success of the Start Fund, with our growing portfolio of risk-based financing products.  The combination will enable faster, more efficient and more effective global humanitarian action or those crises that are difficult to predict while enabling us to ‘layer’ financing instruments for more predictable crises in a way that makes our money work harder and stretch further.

 

In 2021-2023, Start Network will:

  • Support inclusive locally-led structures, to own, develop and implement financing strategies and systems in their contexts to better serve the needs of populations affected by and at-risk of crises.
  • Grow and improve the global Start Fund, and support the growth of national funds to respond to small to medium scale crises that are often overlooked by humanitarian donors.
  • Activate Start Ready as a global financial infrastructure and a way of connecting a range of funds and financing mechanisms, that are timely, proactive, accessible to local actors, and accountable to the membership on behalf of the populations that they serve.
  • Influence donors and develop capacity across the network to help secure flexible multi-year funds that can support these instruments in being accessible to all of our members.

 

 

Start Network's financing facility

 

Start Network's Financing Mechanisms

New financing in action

Resource

ARC REPLICA: Sentinel site monthly check-in reports in Senegal

This resource provides six reports from March/April- September 2020 and summarises household's livelihood situation in relation to: agriculture and water availability, household health, and food security, and accessing loans.

11Feb22

Resource

Start Network Quarterly Learning Brief - Q4 (ES)

Este informe de aprendizaje trimestral (QLB) resume algunos de los aprendizajes clave de la Red Start del último trimestre (Q4) de 2021. Completa el aprendizaje compartido a lo largo del año y proporcionado en el primer, segundo y tercer trimestre.

27Jan22

Resource

Start Network Quarterly Learning Brief - Q4 (FR)

Cette note trimestrielle d'apprentissage (QLB) résume certains des principaux apprentissages du Start Network au cours du dernier trimestre (Q4) de 2021. Il complète l'apprentissage partagé tout au long de l'année et fourni aux T1, T2 et T3.

27Jan22

Resource

Start Network Quarterly Learning Brief - Q4 (English)

This quarterly learning brief (QLB) summarises some of Start Network’s key learning from the last quarter (Q4) of 2021. It completes the learning shared across the year and provided in Q1, Q2 and Q3.

21Jan22

Resource

Start Network Assembly 2021: Recovering costs more equitably an important step in rebalancing power

Takeaways from the 2021 Start Network Assembly Learn session: Recovering costs more equitably: an important step in rebalancing power This session aimed to raise awareness on why a more equitable Indirect Cost Recovery (ICR) across the humanitarian sector is a concrete and tangible way to make progress towards locally led action. Panellists from the session include Fhakrul Islam and Sajid Raihan from Start Fund Bangladesh, Yeakub Hossain from SEEP, and Dulon Gomes from World Vision Bangladesh. The session was facilitated by Myriam Castaneda Solares.

21Dec21

Resource

Acting ahead of crises: how far do we go?

Analysis of humanitarian financing from 2014 - 2019 found that funding pre-organised in advance, based on pre-agreed triggers or plans (predominantly through regional risk pools and anticipatory humanitarian action systems) was equivalent to less than 1% of the UN appeals funding. However, more than 50% of humanitarian crises are somewhat predictable.

01Nov21

Resource

Knowledge, attitude and practice around heatwaves in Karachi, following a forecast-based heatwave messaging project.

The humanitarian impact of extreme heat is an increasing concern, especially in low-income countries with limited access to quality healthcare and informal dwellings which can trap heat. This report analyses the knowledge, attitude and practice of Karachi residents in relation to managing extreme heat. It was conducted in 2020 following a messaging campaign led by HANDS related to extreme heat. The project was triggered through a disaster risk financing approach, using a heatwave model to trigger funding automatically when extreme heat was forecast.

04Jan21

Resource

Start Financing Facility: Quantitative analysis of risk pooling

Start Network is working to provide more effective and efficient financing models for humanitarian aid. Specifically, to enable a predictable continuum of funding for when risks of different scale and severity start to materialise. This report, commissioned from the UK Government Actuary Department, provides technical advice around the funding of the Start Financing Facility (SFF). In particular, by providing a theoretical illustration of the financial implications of pooling a number of risks into a central risk pool. The paper investigates how the number, frequency and size of the risks will affect the demands on the central risk pool, and highlights options for the financial management of the pool.

07Dec20

Resource

LEARN about Start Financing Facility

Start Network’s first virtual Assembly meeting took take place from Monday 12 to Thursday 15 October 2020, alongside our 10-year anniversary celebrations. At the Assembly, we updated members on the development progress of Start Financing Facility.

20Oct20

Resource

Blockchain pilot II: summary of lessons

In 2016, a €50,000 grant to Start Network from the government of Estonia, which is leading the world in its drive to adopt the new technology, enabled us to pilot blockchain for humanitarian financing. So, in 2017 Start Network formed a partnership with a start-up social enterprise Disberse to push forward our plan to test blockchain in the delivery of humanitarian finance. Using the Disberse platform, we set out to test blockchain in a series of small disbursements. The pilot involved the creation of digital wallets on the blockchain that donors could use the transfer funding to NGOs, the NGO could then use its digital wallet to transfer the funding onto country teams. Through the pilot, we aimed to prove that blockchain could potentially be used to speed up the distribution of aid funding and trace exactly how it is spent. In this 'Blockchain Pilot II: summary of lessons' piece the Start Network, Disberse, Trócaire Ireland, Trócaire Rwanda and Caritas Rwanda review the lessons learnt during the implementation of the pilot analyse whether blockchain helped to make the delivery of humanitarian aid more effective, transparent and accountable

26Nov18

Resource

Increasing resilience to natural disasters with cash-based interventions

This report from Catholic Relief Services funded through the Start Fund learning grant, identifies best practices and highlights the lessons learnt following the completion of projects within Alert 195 Vietnam (Typhoon Damrey). 

10Jul18

Resource

Lessons from a 45-day intervention in eastern DRC

This 'value for money' report from Solidarites International identifies several lessons learnt from the completion of ‘Alert 194 DRC (Cholera)’ and highlights the fundamental value about the impact of the Start Fund for the response.

09Jul18

News, blog and opinion

Blog Post

AT LEAST 55% OF CRISES CAN BE PREDICTED BUT LESS THAN 1% OF HUMANITARIAN FUNDING IS RELEASED EARLY

"Early intervention through insurance drastically increases the number of people who can be helped" - Nelly Maonde, Start Network Country Disaster Risk Finance Coordinator - Zimbabwe

22Feb22

Resource

ARC REPLICA: Sentinel site monthly check-in reports in Senegal

This resource provides six reports from March/April- September 2020 and summarises household's livelihood situation in relation to: agriculture and water availability, household health, and food security, and accessing loans.

11Feb22

News Article

Start Network Launches Grants To Accelerate Anticipation and Locally-Led Action

Start Network has launched three new grants that will enable members to access funds in order to accelerate locally led anticipatory action and community-led approaches to monitoring, evaluation, accountability and learning. 

08Feb22

Resource

Start Network Quarterly Learning Brief - Q4 (FR)

Cette note trimestrielle d'apprentissage (QLB) résume certains des principaux apprentissages du Start Network au cours du dernier trimestre (Q4) de 2021. Il complète l'apprentissage partagé tout au long de l'année et fourni aux T1, T2 et T3.

27Jan22