The Omidyar-Tufts Microfinance Fund (OTMF) was launched in November 2005 through a unique partnership between Pierre and Pam Omidyar and their alma mater, Tufts University. The Omidyars gave the university $100 million to create a fund that would be invested entirely in international microfinance initiatives.The fund's objectives include accelerating the growth of microfinance through access to private capital, demonstrating the potential of microfinance as commercially viable investments, and unleashing at least $1 billion of new microloans to the poor in developing nations over the next decade so that these individuals may economically empower themselves.

The fund does not make loans directly but invests in institutions that provide loans or other microfinance services to end users in developing countries. The fund often invests in these institutions through intermediaries such as private equity funds, especially MFIs in emerging markets throughout the world.