in the UK is continuing to grow rapidly and there are a wide range of options
in the market for people ranging from peer-to-peer lending to equity, loans,
gift and rewards-based crowdfunding. It is a crowdead marketplace, if you
pardon the pun.
despite investment crowdfunding being regulated by the Financial Conduct
Authority, it can be difficult for people to decide what to invest in and who
focus is ethical investment crowdfunding – in other words, equity and debt
investments in organisations which are committed to positive social,
environmental or cultural change. We are very proud of this distinctive
approach, it is consistent with our underlying values and helps us to further
encourage people to use their money to positively influence the way we live and
to benefit the planet.
some of the comments from our recent crowdfunding community survey we noted
there’s interest in hearing more about how we select the investment
opportunities on the platform. It can be quite a lengthy process, however in
all cases we run through a sequence of steps before proceeding and making the
offer ‘live’ on the platform. Some of the key questions we ask include:
Does the organisation deliver a positive impact for
people and the planet?
This isn’t a
tick box exercise - we dig deep to ensure we are comfortable with this and that
the organisation is truly impactful.
Is the business in a position to take on external
equity or debt?
Our experienced team will
regularly work with the organisation over a period of months to help them
become ‘investment ready’.
Can we agree a fair deal for both parties?
We take responsibility for structuring the investment
to ensure it works and is fair for both investors and the issuing organisation before
we decide if it’s an offer which we are happy to put our name to.
What does our due diligence tell us?
As we take
responsibility for promoting and approving the investment offers on our
platform, we make sure we have undertaken thorough due diligence before any offer
goes on the platform. Our corporate finance team are all qualified accountants
with many years of experience, so we know what to look for.
we are very selective and getting an investment offer onto our platform isn’t
something which happens overnight. However, if all the right information is in
place we can move quickly.
an offer live on the platform is exciting for everyone involved, but the
preparatory work and investment readiness is, we believe, the key to success for
all parties, and we are confident our track record is testament to this which
makes the ‘impact’ from these investments even more satisfying.
Head of Corporate Finance at Triodos Bank