Rotterdam-based Lendahand, an online impact investing platform regulated in the Netherlands, announced on Wednesday that Dutch bank ABN AMRO’s Sustainable Impact Fund (AA SIF) is acquiring a stake in the crowdfunding platform to help it grow.
The AA SIF is owned and funded by ABN AMRO and has its own investment policy. The fund aims to combine social and financial returns by investing in companies that accelerate the transition towards a sustainable and inclusive society in three areas: the circular economy, the energy transition, and social impact.
The fund makes VC investments ranging from €500K to €4M in companies with a proven concept. It also makes private equity investments of €4M to €30M in companies that have a proven business model and are ready for the next phase of their growth.
Capital utilisation
Lendahand’s mission is to fight poverty in emerging markets by investing in people and their businesses. The investment from AA SIF enables the company to further expand to other European countries to reach more crowdfunders.
The funds will also help strengthen the crowdfunding platform’s position in the target markets to identify new projects and companies to crowdfund.
Eric Buckens, Investment Director at ABN AMRO SIF, says, “Lendahand is leading the way in raising and utilising crowdfunding to finance sustainable and development goals in emerging markets. Not only does the company have a strong track record in terms of identifying impactful projects, but it also gives crowdfunders the possibility to stay closely involved in their investments. This new venture capital investment will allow the company to take the next step.”
Reaching crowdfunders in France
In a statement, Lendahand reports that two French institutional investors, INCO and NGO ACTED, as part of their 3zero ambition, have also invested in this round. Lendahand has received funding of €5.5M in total to further expand in France as the first new market.
ACTED claims to be one of the top 15 international solidarity NGOs that articulate emergency humanitarian aid, stabilisation, and recovery of people affected by crises. With 7,000 employees serving 20 million people in more than 40 countries, and an annual budget of €390M, ACTED works and advocates for a world of Zero Exclusion, Zero Carbon, Zero Poverty, and the achievement of Sustainable Development Goals (SDGs).
INCO Ventures, on the other hand, manages or advises five funds on their impact investments and supports one fund on its impact measurement. These funds are dedicated to financing companies and projects with social and/or environmental impact. They claim to support the scaling of ‘tomorrow’s world structures with passion, commitment, and control’.
“Invest in companies and earn up to 7% interest”
Founded in 2013 by Koen The, Peter Heijen, and Peter Stolze, Lendahand is on a mission to eliminate poverty all over the world using crowdfunding. The company’s model is a way for investors to have a specific social and sustainable impact on the world while receiving a return on their investment.
Since its inception, thousands of investors have already invested more than €125M in various sectors such as renewable energy and agriculture, contributing to improved living conditions for over 1 million people. Besides installing solar panels, they have also supported thousands of female entrepreneurs worldwide.
Koen The says, “Countries such as Kenya, Mexico and Indonesia have plenty of passionate business owners who are willing to put in the hard work to improve the world around them. Unfortunately, inflation and high-interest rates make it difficult to run a business. This is where Lendahand comes in. We want to fight poverty by empowering locals, and we do this with investments by private investors. The platform offers the possibility of providing loans to businesses starting at as little as fifty euros, in exchange for a fair interest rate.”
Lendahand expects to reach €1B invested in emerging countries through its platform by 2026.
