Bank backs crowdfunding platform
GLS, a bank specialising in sustainable investments, has set up a crowd-investing platform for businesses and projects.
Creative minds often lack funds to turn their ideas into reality. Among start-ups, crowdfunding has now established itself as an alternative method of investment, complementing more traditional sources of funding. Specialist platforms such as Aescuvest and Medifundo have been set up in the life sciences sector to provide support to companies wishing to secure capital via crowd funding. Since the end of October 2014, Ecocrowd, has, in turn, strongly promoted the issue of sustainability. Well-known supporters of sustainability such as the Deutsche Umweltstiftung and the Umweltsbundesamt [Federal Environmental Agency] are behind the platform. Meanwhile, the larger crowdfunding platforms such as Seedmatch and Companisto continue to back a diverse range of projects.
GLS made history at the end of January by becoming the first bank to provide a crowd-investing platform. Just as with its traditional banking business, it plans to use it to focus on sustainable ideas in Germany. The online portal GLS Crowd will be operated by GLS Crowdfunding GmbH, a wholly owned subsidiary of CrowdDesk GmbH. "We're delighted, together with GLS bank, to have reached a new milestone in the digitalisation of traditional banking while also being able to contribute towards sustainability,” explains CrowdDesk Director Johannes Laub.
Get behind the vision from as little as 250 euros
Investors and project developers are put in touch via the crowd portal and the funding process organised. In future, forward-looking ideas from the areas of sustainable economics, social and health affairs, living space, renewable energies and nutrition, but also education and culture, will be able to find investors in this manner. "Crowdfunding allows us to create a new instrument to achieve a proven goal: allocating funds where they can be used most effectively," says the President designate of GLS Bank, Dirk Kannacher. With contributions starting at 250 euros, backers can help support set-ups or projects. A maximum of 10,000 euros can be put up for any one investment.
A successful start
Energiegewinner eG are the inaugural project to get off the ground thanks to GLS Crowd. The company was looking for supporters for its solar project in Bad Rodach, Franconia. Within two weeks of launching their appeal on the online platform, they had already met their funding target of 400,000 euros. The investors pledged a ten-year subordinated loan at 4% interest