Crowdinvesting - an innovative blending instrument to facilitate climate investments
As of: November 2020
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
- 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