Crowdinvesting – an innovative blending instrument to facilitate climate investments
As of: October 2021
Smaller-scale investment projects have a key role to play in climate action – especially in the Global South. These are significantly more difficult to finance than larger projects, however. One such financing option is crowdinvesting, whereby many investors contribute smaller sums of money in order to finance the project together. The project is supporting the setup of a crowdfunding platform that aims to be self-supporting after a five-year period. The platform will therefore offer investment opportunities for projects that have no access to commercial financing on account of steep transaction fees and a lack of equity investment readiness, together with a scarcity of financial expertise. In the initial phase, the platform plans to support around 60 projects and mobilise EUR 6.2 million of private financing from small investors./
State of implementation/results
- The crowd investing platform is in preparation.
- A study on the following topics has been prepared:
- Presentation of the design features of the proposed crowdinvesting platform;
- Market potential;
- Potential investors;
- Needs assessment in the pilot countries Ghana, Peru and Rwanda;
- Comparison with existing platforms and analysis of the added value of the proposed crowd investing platform
- The platform was launched in 2020. This includes the website where Investee projects are presented.
- After the launch of the platform, the first financing round is launched through an idea competition/tender.