Crowdinvesting - an innovative blending instrument to facilitate climate investments - Internationale Climate Initiative (IKI)
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Crowdinvesting - an innovative blending instrument to facilitate climate investments

As of: September 2020

Objective and activities

The overarching goal is to address the market failure of financial institutions' lack of commitment and to attract 'patient', risk-conscious retail investors to finance smaller climate investments. This project is intended to show that retail investors are willing to invest in projects and create investment opportunities that do not have access to commercial financing due to higher transaction costs, a lack of willingness to invest in equity capital and a lack of financial expertise on the part of project developers/SMEs. By offering proven investment opportunities, the platform aims to combine the benefits of crowdfunding with those of an investment fund. The project supports the development of the platform, which should be financially viable after 5 years without further donor funding. During the build-up phase, the platform plans to support around 60 projects and mobilise EUR 6.2 million of private funding 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 crowdin-vesting 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 launch is planned for early 2020. This includes the website where Investee projects will be presented.
  • Immediately after the launch of the platform, the first financing round will be launched through an idea competition/tender.

Project data

Country:
Ghana, Peru, Rwanda

Implementing organisation:
Frankfurt School of Finance & Management gGmbH

Partner institution(s):
  • Ministry of Energy and Petroleum - Ghana, Ministry of Environment (MINAM) - Peru

BMU grant:
3.606.119,29 €

Duration:
03/2019  till  12/2023




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