Abundance Investment targets new shareholders to accelerate green project financing
Peer-to-peer finance platform Abundance Investment looks set to accelerate demand for environmental and social projects across the UK, by increasing its number of small shareholders 10-fold.
Abundance Investment has played an influential role in mobilising funds for community and crowd-funded renewables projects in the UK, to date. The finance platform has this week announced that it wants to scale-up investments into low-carbon projects by launching a share offer through equity crowdfunding specialist Seedrs.
More than 50% of the £1.2m target has been raised, with the round open for as little as £10. The shares are Enterprise Investment Scheme (EIS) eligible meaning shareholders will benefit from tax reliefs.
Abundance’s co-founder Bruce Davis said: “The time is right to offer our customers who backed our projects the chance to now back the business that makes them happen. We’re proud to have coined the phrase ‘democratic finance’ – and we firmly believe that capitalism works better when people are directly involved; as shareholders, debenture investors or employees.
“Now we’re working with Seedrs to invite people to join us as shareholders. Together we can build a bigger community of investors, funding bigger investments in green and social projects that have a bigger impact. Helping create a world of better investing.”
Pleasing the crowd
Launched six years ago, Abundance has more than 5,000 customers and has raised £77m to help finance 34 projects tailored towards low-carbon innovation and social action.
In 2016, Abundance launched the UK’s first innovative ISA for renewable energy investments and currently has two renewable energy investments live on its platform: a floating tidal stream turbine and E2 energy – a portfolio of operational wind turbines in the North of England.
Across the UK, the alternative finance sector is recording year-on-year growth rates of 100%, while the UK’s green economy is growing three times faster than the rest of the UK economy.
The UK Government has created a Green Finance Taskforce to help businesses invest in clean growth and accelerate the market further.
Claire Perry MP, Minister for Energy and Clean Growth, said: “I’m delighted to see how many more businesses and organisations such as Abundance Investment are seizing this multi-billion pound opportunity to energise their communities to tackle the very serious threat of climate change.”
Claire Perry at edie’s Sustainability Leaders Forum
Minister for Energy and Clean Growth, Claire Perry will appear at edie’s Sustainability Leaders Forum to discuss how the Clean Growth Strategy will move from ambition to action and how Brexit will shape Britain’s low-carbon future.
The two-day event, taking place 5 & 6 February 2019 at the Building Design Centre, London, will also discuss why 2019 is the year of green finance, climate reporting and capitalising on the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations.