Funding Database

bettervest GmbH

bettervest is an online crowdfunding debt platform based in Frankfurt am Main, Germany. We enable citizens to jointly finance sustainable energy projects across the globe in order to accelerate the energy transition and protect our climate.

 

We are a licensed investment broker (Finanzanlagenvermittler) under the German Commercial Code (§ 34f Gewerbeordnung) and are registered in the German financial intermediary register under the ID D-F-125-DRNY-54. We mediate subordinated loan contracts between private or institutional investors based in Germany (lenders) and international corporate entities (borrowers). Borrowers raise capital on our platform in order to finance renewable energy, energy efficiency and CO2 emissions reduction projects. Investors are able to invest between 50 and 10,000 € in any given project.The respective project and the resulting gains in efficiency and/or cash-flows are planned in detail and disclosed to investors on our platform as a basis upon which to form their investment decisions.

 

 

Go to fund Website

Geographical Focus

All Countries with the exception of conflict zones.

Technology/Sector Focus

Projects need to result in emissions reductions (CO2 or equivalent) by implementing energy efficiency measures, generating energy from renewable sources or producing clean technology products. Ultimately, the project needs to help reduce the usage of natural resources. Moreover, we only finance technologies that are marketable and have successfully completed a pilot phase.

Size of Investment
EUR 100,000-2.5M
Target Return
ROI between 4,25 and 12% with an average of 7.2%
Total Fund Size
EUR 10M (August 2018)
Fund Structure
Subordinate loan (debt financing) with an annual repayment structure.

General Fund Information

Type of Investment

Debt

Investors of Fund

Retail investors based in Germany. To date (August 2018), we have over 6,000 users registered on our website.

Fund Information

Size of Investment

EUR 100,000-2.5M

Fund Structure

Subordinate loan (debt financing) with an annual repayment structure.

Target Return

ROI between 4,25 and 12% with an average of 7.2%

Sample Investee

You will find a selection of our funded projects in Germany, India, Nigeria, Uganda, Ghana, Namibia and other countries on our website.

Additional FMC Info

Network/Partners

Networks: DENEFF (Deutsche Unternehmensinitiative Energieeffizienz), BVMW (Bundesverband mittelständische Wirtschaft), German Crowdfunding Network, Bundesverband Crowdfunding
Partners: giz (Gesellschaft für internationale Zusammenarbeit), UKaid, Winrock international, Fraunhofer ISE, Canopus Foundation, Polarstern, MehrWert, co2online, Ökostrom+ 2.0

Location of Registration and HQ

Commercial register entry: HRB 95811 Local Court Frankfurt am Main

HQ: Frankfurt am Main, Germany

Primary Contact Information For Developers

bettervest GmbH
Kettenhofweg 125
60325 Frankfurt
Germany

+49 (0)69 34877347
mail@bettervest.com
www.bettervest.com

Types of Financing

Equity

N/A

Technical Assistance / Grants

The borrower can apply for grants or draw on relevant government subsidies to supplement the loan. This will reduce the total funding volume.

Debt Mezzanine

N/A

Guarantee / Insurance

N/A

Requirements for Financing

Applicant Requirements

The company has existed for 3 years and has at least 1 year experience in the field with references to show for it, the company has at least 3 employees (including unpaid shareholding employees); the company seeking funds is based either in Germany, Austria, Bulgaria, Singapore or Nigeria or willing to establish a subsidiary in one of these countries

Project Requirements

• The project reduces CO2 emissions (or equivalent) or the usage of natural resources.
• The project generates revenue, reduces costs or falls in the category of project development.
• The technology is commercially viable and has successfully completed the pilot stage.
• The funding volume exceeds 100,000 € but is no higher than 2,500,000 €.
• The project partner commits a minimum of 10,000 € as equity in order to set a minimum funding threshold.
For more information, refer to the propose a project page as well as our project related FAQs.

 

 

Target Impact

Projects should be aligned with the UN Sustainable Development Goals and comply with our ethics policy.

Due Diligence Requirements

Each project must be analysed by an external certified energy consultant and pass bettervest’s financial due diligence assessment.

Detailed Description Of Funding Process Procedure

Based on a pre-feasibility assessment as well as economic calculations, bettervest devises a financial proposal for a subordinate loan and sends it to the project partner (borrower).Both parties discuss the financial proposal and negotiate an agreement. The project partner conducts internal financial due diligence based on the financial documents.

Once both parties have come to a mutual agreement, a Letter of Intent (LOI) is signed. Subsequently, bettervest will then send the project partner a list of documents that are required to advance to the next stage of cooperation. An external energy consultant will send the project partner an offer including prices and an estimated schedule. This is signed by project partner, should he/she agree with the conditions. The cost of the energy consultant report is borne by the project partner. The energy consultant will prepare the technical due diligence report and all parties (the project partner, the energy consultant and bettervest) will support the due diligence.

Once the project is deemed financially and technically viable, bettervest begins developing the marketing campaign (this includes video production, preparing the text, writing press releases, etc.). Upon completion, the project is published to our website following the approval by the project partner. Finally, the project partner signs the contracts and the campaign is ready to launch!

18 days after the funding has ended the project partner will receive 70% of the loan. This day marks the deadline for repaying the annual return to the investors. The remaining 30% of the loan will be transferred upon reaching a pre-agreed milestone, usually after bettervest has received photographic evidence of the implementation of the project, proof of invoices and bills, inspection reports, etc.