It is finally happening! After months of preparation, our crowd-investing is officially starting in April. We want to give you the opportunity to become part of Africa GreenTec and of our vision. Together with you, we want to empower 3 million people in the Global South to achieve more self-determination and growth through sustainable energy solutions by 2030.
We will publish the crowd-investing campaign on our new investment platform..
If you register for the newsletter on the platform, you will be notified about the start of the early bird phase in advance.
In this blog post you will find out the most important things concerning crowd-investing in general and our campaign.
Crowdfunding and crowd-investing are becoming increasingly popular in Germany. Originating in America with well-known platforms such as Kickstarter, crowdfunding quickly established itself as an alternative to bank loans for raising the capital needed for developing and implementing an idea. After all, who could be more interested in the realization of a product idea than existing fans and future users? Initially, this was done exclusively through donation-based or reward-based campaigns, in which supporters either donate their contribution or pre-order and pay for the product prior to its completion, so that they can be the first to receive it at the end of the campaign.
Via England the trend finally reached Germany, at which time new forms of crowdfunding were already being developed: lending-based and equity-based crowdfunding – called crowd-investing. Digital natives, who were looking for alternative investment opportunities and new technological innovations, caught up with the trend, leading to rapidly accelerating growth of the German crowd-investing market. In recent years alone, the annual volume of financing provided by the crowd has grown from almost € 80 million in 2016 to over € 400 million in 2019.
Africa GreenTec was the first German company to launch a Crowdinvesting campaign for a project in Africa.
Founder Torsten Schreiber had already co-founded several German platforms in 2012, including bettervest.com and , and is still considered a pioneer in the field of green crowd-investing today.
The campaign financed the first Solartainer in order to supply an entire African village with electricity. To date, environmental projects such as wind farms, solar power plants or tree plantings continue to be financed via lending-based crowd-investing. This means that investors grant the project operator a loan for a certain term and receive a fixed annual interest rate in return.
We would like to revive this tradition, also due to repeated inquiries, in order that not only large investors get the chance to support Africa GreenTec. And we’re even taking it one step further this time. Not only can small investors contribute starting at € 250, but this time they can become an integral member of the company. This way, they support our mission in the long term, while benefiting directly from profit distributions and the enterprise value development. The German government, having recognized the increasing benefits of crowd-investing for sustainable projects and the growth that companies were experiencing, then decided to top it off: As of July 2019, profit participation rights are also permitted for crowd-investing campaigns and the upper limits have been raised to € 25,000 per investor (unlimited for demonstrably professional investors) and to € 6 million total volume.
We have chosen to integrate profit participation rights, as this offers supporters a very direct and share-like participation in Africa GreenTec. Similar to subordinated loans, profit participation rights are a variant of mezzanine capital (a hybrid between debt and equity) and can be contractually structured very flexibly. All the while, the arrangement is still subject to supervision by BaFin and is thus monitored in accordance with consumer law.
In our version, the term is unlimited and every investor can either terminate after 15 years, sell his shares beforehand or benefit from an IPO, an exit or a buy-out by a major investor. The value of the investment is determined according to the company’s corporate development up to that point. During the entire runtime of the contract, each investor also receives a fair share of the company’s annual profit distributions based on their investment rate (investment amount in relation to the company value at the beginning of the contract).
Thus, all supporters of Africa GreenTec get the chance to take part in our journey to empower people of the Global South to more self-determination and growth through sustainable electricity solutions. They will also benefit from the opportunities offered by the African off-grid market in the coming years. We have developed and refined our technology systems, services and business models over the past six years. Now it is up for you to support us in scaling up our activities in order to not only benefit financially but to leave a positive and sustainable handprint in the world.
We empower people to achieve more self-determination and growth through sustainable energy solutions.
Africa GreenTec is growing with you! We empower people to achieve more self-determination and growth through sustainable energy solutions. Join us!