How do we decide which organisations we work with?

There are a number of investment crowdfunding platforms offering opportunities for people to support a wide range of organisations. This can make it difficult to choose which platforms to invest through and which organisations to support. Whitni Thomas explains why Triodos is proud of our distinctive approach to choosing the organisations that we work with.

Blog

- 9 December 2022

Crowdfunding in the UK is continuing to grow and there is an increasing number of platforms in the market, with a wide range of options for people ranging from debt and equity investment to donations or rewards-based crowdfunding.

It can be difficult for people to decide which platforms to invest through and which organisations to support.

Our focus is investment crowdfunding for positive impact – in other words, debt and investments in organisations which are committed to positive social, environmental or cultural change. We are very proud of this unique approach; it is consistent with our underlying values and helps us to further encourage people to use their money to positively influence the way we live and to benefit the planet.

At Triodos we work hard to bring investment opportunities on to the platform which we believe Triodos customers will want to support, which deliver the right balance of positive impact and financial return. Some of the key questions we ask include:

1. Does the organisation deliver a positive impact for people and the planet?

This is always the first question to be addressed. It isn’t a tick box exercise, we have in depth discussions with organisations to really understand their values, the environmental or societal issues they are looking to tackle, and the impact they deliver.

2. Is the business in a position to take on external debt or equity?

Our experienced team of finance professionals will work with the organisation over a period of months to review and analyse financial information to ensure that raising external debt or equity is appropriate and what structure might be most suitable.

3. Can we structure an investment on terms that are fair for both investors and the company raising the capital?

We take responsibility for structuring the investment to ensure it works and is fair for both investors and the issuing organisation before we decide if it’s an offer which we are happy to promote on our crowdfunding platform.

4. What does our due diligence tell us?

As we take responsibility for promoting and approving the investment offers on our platform, we make sure we have undertaken due diligence before any offer goes on the platform. Our corporate finance team are all finance professionals with many years of experience, so we know what to look for. This includes know your customer checks, financial due diligence including reviewing the company’s financial forecasts and assumptions, taking stock of the management team and governance of the company, and checking mission and impact fit.

Please note that Triodos Bank does not provide financial advice to savers and investors. It is prospective investors’ responsibility to decide whether to invest or not, including carrying out relevant background research.

Overall, we are very selective. Structuring an investment offer for launch on our platform usually takes around three to four months of investment readiness work. However, if all the right information is in place we can move quickly.

This preparatory work and investment readiness is, we believe, the key to success for all parties, and we are confident our track record is testament to this which makes the impact from these investments even more rewarding.

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