Source/author : Energy 4 Impact
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Powering the Crowd into the Future is the fifth and final report in the Crowd Power series and captures the key learnings from three years of research into crowd-sourced financing for energy access businesses and projects. The report captures three years of data, from 2015 to 2017, on relevant campaigns. We provide recommendations for future research and interventions focused on crowd-sourced financing for energy access related businesses and projects. Data demonstrates that crowd-sourced financing for energy access businesses and projects has grown substantially – from $3.4 million in 2015 to $13.7 million in 2017. We anticipate similar growth trends reflected in 2018 data.
Over the course of the threeyear research period under Crowd Power we have identified six archetypes relevant to businesses and projects crowd-sourcing finance. The six archetypes include noninvestment based models, where funders do not expect to receive a financial return,1 as well as debt and equity based models, where funders can reasonably expect a financial return. In general terms, crowdfunding models are considered higher risk than debt based models. It is important to note that we provide an explanation of the most orthodox version of each archetype and that in reality models may differ from platform to platform. The archetypes we identify may or may not reflect their legal definition as per the platform’s resident financial regulator.