Bristol’s Triodos Bank is first in the UK to launch crowdfunding platform

Money may make the world go round but it can also be used to create global changes, thanks to a new crowdfunding platform.

Bristol-based Triodos Bank has become the first bank in the UK to launch such a site, enabling people to invest directly in organisations that are working to deliver a positive social and environmental impact.

The very first bond to go live will re-finance Mendip Renewables Ltd solar farm, taking it into community ownership.

An estimated £1.4m will be generated over the project’s 25 years, which will go to support causes, including Key4Life, a charity that works to rehabilitate young offenders and those at risk of going to prison.

Bevis Watts

“Everyday investors can make a positive choice to shape the world they want to live in,” says Bevis Watts, managing director of Triodos Bank UK.

“In that sense, money can be a hugely powerful form of democracy if invested directly into renewable energy, social housing, charities or social enterprises. Social investment needs to be more accessible to UK investors, who increasingly recognise the power of money to create change.

“We’ve been crowdfunding since before it became a well-known term. With the new Triodos crowdfunding platform we’re recognising the huge potential of crowdfunding and responding to demand for Innovative Finance ISAs.

“Investors are looking for opportunities that allow them to support progressive companies, social enterprises and charities making a positive impact, while also receiving good long-term returns.”

Most minimum investments will be £500 and will go to established charities or businesses that have been extensively screened by Triodos for social and environmental impact, the viability of their business model and the credibility of the management team.

The bonds are eligible to be held in the Innovative Finance ISA, allowing investors to receive the interest they earn on these investments tax-free.

The platform launches with three bond offers, with interest rates ranging from 5 per cent to – 7 per cent and, as with all investments, capital is at risk.

Mendip Renewables

The bond offers are:

• Mendip Renewables which aims to raise £1.8m by March 31, to take a 5MW operational solar farm in Somerset into community ownership.
• Thera Trust, a charitable group of companies providing care and housing for people with complex learning disabilities, aiming to raise £5m to provide 14 new homes.
• Rendesco which aims to raise £5.5m to develop green energy from ground source heat pumps across 100 sites, with a focus on retirement homes and providing low-carbon heating to keep the elderly warm.

Jeremy Rogers, chief investment officer at Big Society Capital, said: “Triodos has a long history of leading the way in social impact investment in the UK, helping to improve people’s lives and their environment.

“We commend their plans to launch a crowdfunding platform using the Innovative Finance ISA, to enable more individuals to invest in projects that tackle the causes they care about.”

Investor Jerry Cowhig. ©Barbara Evripidou/FirstAvenuePhotography.com

Jerry Cowhig, investor and chairman of Royal West of England Academy of Art, says he wanted to use his money to do good.

Dan Hird, head of corporate finance at Triodos Bank, added: “To tackle the big issues we face today we need to inspire investors to support progressive and pioneering businesses.

“We know the interest is there and, having seen the crowdfunding sector maturing in recent years, now feels like the perfect time to increase our presence in the ethical crowdfunding market.”

For more information and to register interest, visit www.triodoscrowdfunding.co.uk.

Read more: Sector spotlight: Energy