Smart Villages/LCEDN webinar series For more information, please go to e4sv.org https://e4sv.org/events/webinar-crowd-power If you are a start-up or a smaller energy access firm looking to raise funds, then energy-targeted crowdfunding may just be for you. Raising the necessary finance for start-up and scale-up energy access ventures on terms that make commercial sense is one of the biggest challenges in the sector. In the search for appropriate finance, innovative energy access projects are increasingly turning to crowdfunding to address their financing need. Energy4Impact has spent the last 3 years looking into the challenges and opportunities in crowdfunding energy access. In this webinar, they will share some of their findings and recommendations, covering donation, reward, debt and equity crowdfunding. Energy4Impact will be joined by crowdfunding platform partner Lendahand, as well as crowdfunded entrepreneurs Sosai Renewable Energies of Nigeria to present their experiences. This month, our presenters/discussants will be Energy4Impact's Davinia Cogan, who has been managing their crowdfunding research programme, Koen The, CEO of Lendahand Ethex and Habiba Ali, Managing Director of Sosai RE. In addition to presentations on their experiences, the webinar will include a panel discussion on the various challenges and opportunities of crowdfunding energy access between the presenters, as well as - of course - an opportunity for Q&A with all webinar participants.

1. Crowd Power
Crowdfunding Energy Access Ventures
March 2018

2. 2
Crowdfunding Energy Access Ventures
Overview
▪ Crowd Power
▪ The Seven Archetypes
The 7 Campaign Profiles for Energy Access Crowdfunding
- Donation: Philanthropically motivated donation
① Partnership model
② One-off fundraiser
- Reward: Contributors receive ‘gift’ in return for their contribution
③ Aggregate network contributions (quasi-equity)
④ Mega-campaign
- Debt: Lenders receive their money back with or without interest
⑤ Microloans
⑥ SME loans
- Equity: Investors purchase units in the business, sometimes with voting rights
⑦ Equity
Davinia Cogan
Programme Manager, Crowd Power
Energy 4 Impact
davinia.cogan@energy4impact.org

3. 3
Crowdfunding Energy Access Ventures
Crowd Power
• Three-year programme launched in 2015 to research and stimulate energy access
related crowdfunding – funded by UK aid
• Over 100 energy access campaigns have been supported via direct support
(~$600k) on nine platforms; supported campaigns have raised over $4.4M

4. 4
Crowdfunding Energy Access Ventures
Crowd Power
• Funding was split across four mutually exclusive campaign types:
- Donation: Philanthropic motivation – similar to general donations
- Reward: Contributor receives a ‘gift’ in exchange for their financial contribution
- Debt: Lender funds a loan to a consumer, entrepreneur or SME – with or without i%
- Equity: Energy access company issues shares on the platform, investor purchases them
22%
13%
4%
61%
$600,000
DEPLOYED
Crowd Power Spending by Platform Type

5. 6
Crowdfunding Energy Access Ventures
Donation
Model Description Campaign
Size
Platforms
Partnership model Non-profits supplementing income through
recurring campaigns; frequent DD
~$10k GlobalGiving
One-off fundraiser Non-profits and social enterprises raising
funds for a specific milestone or project
~$20k StartSomeGood
Chuffed
• Partnership model is based on non-profit becoming a ‘field partner’ of a
particular platform – they must fulfill due diligence requirements, submit
quarterly and annual reports on activities and financials (10% - 50% annual
budget raised via CF)
• One-off fundraiser is similar to the ‘Reward CF / Aggregate network contributions’
model, however the crowd does not receive a reward in exchange for their
donation – success is about network size/capacity, outreach strategy and quality
of campaign materials

6. 7
Crowdfunding Energy Access Ventures
Donation
One-off
Fundraiser
by
RAFODE
LTD.
on
M-CHANGA
Raised
$18,300
with
1:2 MATCH
FUNDING
LINK

7. 8
Crowdfunding Energy Access Ventures
Reward
Model Description Campaign
Size
Platforms
Aggregate
network
contributions
Social enterprise formalising contributions
from network/F&F – to raise seed capital /
quasi equity
$30k - $50k Indiegogo/Generosity
Pozible
Mega-campaign High profile campaigns, raising capital to
develop new product
$100k -
$400k
Indiegogo
Kickstarter
• Aggregating network contributions is the most common reward CF type, and
depends largely on the network of the campaign-maker, the quality of the
campaign materials (e.g. video) and the outreach strategy
• Mega-campaigns are rare and successful campaigns have a similar profile so
successful equity campaigns – novel/innovative product, own their IP, and
strong, well-connected international networks; the success stories get a lot of
publicity but in reality difficult to replicate

8. 9
Crowdfunding Energy Access Ventures
Reward
Aggregate
network
contributions
fundraiser
by
MUSANA
CARTS
on
INDIEGOGO
Raised
$27,288
with
LUMP SUM
LINK

9. 10
Crowdfunding Energy Access Ventures
Debt
Model Description Campaign
Size
Platforms
Microloan debt Loans to entrepreneurs or consumers, often
originated by an MFI/social enterprise
<$1k Kiva, Zidisha, Milaap
SME lending SME working capital loans, often paid direct
to manufacturer; DD carried out by platform
$50k - $1m TRINE, bettervest,
Lendahand, Kiva DSE
• Microloan platforms are used by MFIs and social enterprises to finance consumer
purchases – SHS, cookstoves, biogas digesters; borrowers are vetted by
intermediary and often charged interest, however lenders do not earn interest
• SME lending is the highest area of growth in energy-access CF; it covers the
gamut of working capital requirements from the Kiva Direct to Social Enterprise
pilot (<$50k) to larger platforms: TRINE, bettervest, Lendahand

10. 11
Crowdfunding Energy Access Ventures
Debt
SME Loan
by
PAWAME
on
TRINE
Raised
$185,000
with
CO-
GUARANTEE
(50%)
LINK

11. 12
Crowdfunding Energy Access Ventures
Equity
Model Description Campaign
Size
Platforms
Equity Company issues shares to platform members
– often include company’s network
$150k - $1m Crowdcube
Oneplanetcrowd
• Seven equity CF campaigns have been launched to date – by cos/platforms based
in UK, Netherlands and Sweden – however only suitable for a specific company
profile: companies that have a novel/innovative product, own their IP and have
an international management team
• We saw incredible growth in 2016 from $80k in 2015 to $3.4m (43X growth),
however there was little activity in 2017 – growth restricted by regulations,
mismatch of off-grid company profiles to the typical equity CF profile, and
awareness of equity CF as a viable fundraising option

12. 13
Crowdfunding Energy Access Ventures
Equity
Equity
campaign
by
BUFFALO
GRID
on
CROWDCUBE
Raised
$685,000
with
LUMP SUM
LINK

13. 5
Crowdfunding Energy Access Ventures
The Seven Archetypes
Type Model Description Campaign
Size
Other Examples
1 Donation Partnership model Non-profits supplementing income through
recurring campaigns; frequent DD
~$10k TAHUDE Fdt
GlobalGiving
2 Donation One-off fundraiser Non-profits and social enterprises raising
funds for a specific milestone or project
~$20k Pollinate Energy
Chuffed
3 Reward Aggregate network
contributions
Social enterprise formalising contributions
from network/F&F – to raise seed capital
$30k -
$50k
Okra Solar
Pozible
4 Reward Mega-campaign High profile campaigns, raising capital to
develop new product
$100k -
$400k
GravityLight
Indiegogo
5 Debt Microloan debt Loans to entrepreneurs or consumers, often
originated by an MFI/social enterprise
<$1k Kamworks
Kiva
6 Debt SME loans SME working capital loans, often paid direct
to manufacturer; DD carried out by platform
$50k - $1m BBOXX
TRINE
7 Equity Equity Company issues shares to platform members
– often include company’s network
$150k -
$500k
Buffalo Grid
Crowdcube

14. 14
Crowdfunding Energy Access Ventures
Crowd Power Impact
50,000t
CO2
REDUCED
Funded by Crowd Power – Musana Carts, Uganda
Musana Carts raised $27,288 on Indiegogo for proof of concept;
to create a MVP and pilot concept in Kampala
$4,400,000
RAISED
250,000
BENEFICIARIES
120+
JOBS
CREATED