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How can we raise enough capital to finance the infrastructure needs of Energy 2.0? The climate finance requirements for the aggressive build-out of renewables and the climate action we need seem overwhelming.
However, some fantastic startups in the industry are tackling this issue head-on with innovative platform-scale models. Take Raise Green, a platform that gives people with as little as $100 to invest a chance to support clean energy and climate solution projects.
It relies on crowdfunding to give all investors a way to generate positive, measurable social and environmental impact alongside a financial return.
CEO and Co-Founder Franz Hochstrasser thinks it's a way to make a meaningful impact without a solar finance degree or billionaire status.
"The world needs a whole society mobilization to cut carbon pollution fast enough to avoid the worst impacts of climate change. And the two key ingredients to that mobilization are more money and more people," Franz said.
Raise Green capitalizes on a 2016 change in U.S. Securities and Exchange Commission regulations that opened the door to greater participation by small investors. Known as Regulation Crowdfunding, it enables companies to raise as much as $5 million annually by selling securities such as equity or convertible note to the public online.
Franz said this change frees up as much as $5 trillion in American household net worth in low- or no-interest check checking and savings accounts — ideally for investment in climate solutions.
SunCast Host, Nico Johnson, recently talked to Franz and Raise Green Co-Founder Jackie Logan about how they support the innovators and entrepreneurs on the frontline of climate solutions.
Jackie, the company's Chief Investment Officer (CIO), shares how Raise Green works with local leaders to develop project finance companies, which can help scale up the adoption of clean energy and climate solutions in their communities. This approach creates a sustainable model for growth that benefits everyone involved.
It also offers "blended capital," which allows investors to contribute different types of capital to a project, such as equity or debt.
Raise Green builds upon Franz's background in policy, climate change, environmental, and social issues and advances Jackie's more than 20 years of capital markets experience.
Before graduating from the Yale School of the Environment with a focus on sustainable finance, clean energy and business in 2018, Franz served eight years in the Obama Administration. His roles included Senior Advisor to the Special Envoy for Climate Change at the Department of State,
deputy associate director of the White House Council of Environmental Quality, and confidential assistant and legislative analyst at the Department of Agriculture.
He lectures at Yale School of Environment and is co-founder of New Haven Community Solar.
Jackie worked for JP Morgan and Goldman Sachs and was a vital member of an internet-based trading platform. She has an undergraduate degree in chemistry from Williams College and MBA from Wharton.
Join us for an introduction to the powerful concept of Regulation Crowdfunding, a relatively new financing method that pools small individual investments or contributions from many people. Raise Green —launched in 2018 with a $25,000 Climate Change Solutions grant from Yale — aims to encourage more people to invest in climate solutions. By using Regulation Crowdfunding, they have created an accessible and democratic way for people to support projects that benefit the environment.
Since its inception, Raise Green has mobilized about $6 million for climate solutions with the help of some 3,000 investors and 20,000 members.
If you're looking for a way to invest in climate solutions, Raise Green might provide an answer. Listen to the podcast to discover how you can join the crowd.
NOTEWORTHY QUOTEs:
“We were trying to prove a point, which was that we can organize a group of conservative investors to put small dollar denominations at our lowest investment amount actually was $50. So we have several $50 investors in New Haven community solar that came in, and use crowdfunding to finance solar. And at the end of the day, it worked it.”
“There is what we call investment crowdfunding. And that is what raised green is and certain other platforms that you’re probably familiar with the larger names like a Republic or a Wefunder. We are actually literally issuing securities for companies and they are investments where investors expect to get a financial return. The difference at Raise Green is investors are here for a financial return, but also an impact.”
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ABOUT THE HOST OF SUNCAST:
Nico Johnson is the creator and host of SunCast, consistently rated a top solar podcast in the clean energy sector. The content of the show is geared towards listeners looking for insights on where the markets are headed, how to position themselves or their companies, and what today's market leaders do to stay ahead of the pack.
Nico is an Investor, Executive Coach, and 16-year veteran of the solar industry, having led development in the US and Latin America for global companies like Trina Solar and Conergy.
You can connect with Nico Johnson on Twitter, LinkedIn or email.
If you’ve been second-guessing your work decisions or maybe trying to reconsider how you "fit" in the renewable energy industry -> grab 20 minutes on Nico's calendar and discuss whether having him as Your personal coach might be the right next step.