Social inequality, climate change, and the energy transition– we are facing complex challenges that demand long-term, resource-conscious solutions. Real estate, as one of the largest single asset classes, and largest source of CO2 emissions plays a central role in this context. Real estate is where the largest impact on energy consumption, social inclusiveness, and sustainable economic practices can be found. Real estate shapes how we live, work, and stands for a majority of the energy we consume and CO2 emissions we have. 

For this reason, we at Reliance have taken the strategic decision to increasingly offer investment opportunities in real estate. These real estate investment opportunities align with our mission to offer both financial and sustainable returns. The vast majority of these investments are closely aligned with at least one of the United Nations’ Sustainable Development Goals (SDGs).   
 
What does sustainable real estate mean? Why does renewable energy sources play such a key role? In this article we will explores these topics and how you as an investor can earn both a financial and sustainable return through invesdor.  

Real estate, renewable energy, and sustainability: Why is Reliance expanding its range of investment opportunities into real estate ? 

Reliance follows a clear strategy: sustainability and financial returns are at the core of the investment opportunities we offer. Through the investment opportunities in corporate debt, equity investments and renewable energy we have been able to offer attractive financial returns together with environmental sustainability. This has allowed our investors to diversify among three asset classes, ultimately reducing risk while maintaining attractive expected returns. We have however identified that social sustainability is an underserved topic in the financial markets. 

By offering our investors with real estate investment opportunities we believe that we can not only allow our investors to have an even larger environmentally sustainable impact but also tap into social sustainability and diversify further through adding a fourth asset class. This is why we have taken the strategic decision to increasingly offer investment opportunities within real estate. 

Our decision to increasingly offer investment opportunities within real estate is a direct reflection of our commitment to the United Nations Sustainable Development Goals (SDGs, https://sdgs.un.org/goals). We emphasize environmental aspects as well as social and economic criteria. Every investment opportunity is assessed in advance using a proprietary checklist. Our minimum requirement is ESG – Environmental, Social and Governance – compliance while we strive for having at least 80% of the investment opportunities SDG.  Key SDGs we focus on include the following:  

• Good Health and Well-Being (SDG 3): Sustainable real estate promotes healthier living and working environments through improved air quality, the use of natural building materials, and modern ventilation systems—contributing to greater well-being for occupants. 

• Affordable and Clean Energy (SDG 7): Buildings that rely on renewable energy sources such as solar power, geothermal energy, and battery storage help reduce CO₂ emissions—and ongoing operating costs.  Reliance investment projects are examined to determine the extent to which they cover their energy requirement from renewable sources. 

• Reduced Inequalities (SDG 10): Inclusive and socially responsible real estate offers fair access to affordable housing, especially for students, seniors, and low-income households. In the investment opportunities offered at Reliance this can mean for example socially supported real estate.  

• Sustainable Cities and Communities (SDG 11): Sustainable real estate can for example contribute to the resilience and livability of urban areas through the renovation and repurposing of existing buildings and smart neighborhood solutions. Ultimately having an impact not only on the livability of the community but also on the environment. When evaluating investment opportunities within real estate we consider multiple factors including local context , support mixed-use development, and help shape future-proof urban structures.   

• Responsible Consumption and Production (SDG 12): Sustainable real estate construction relies on resource-efficient construction methods. Such real estate prioritizes the refurbishment of existing buildings and the use of eco-friendly materials. Our assessment criteria for sustainable real estate construction and refurbishment include, for example,  material circularity and long-term maintainability.

Through our strict evaluation criterion including the above-mentioned SDG’s we at Reliance want to enable our investors to invest in real estate offering attractive financial- and sustainable returns and the opportunity to diversify into a new asset class. 

INFO: What are sustainable buildings?   
Sustainable real estate refers to buildings or neighborhoods that are planned from the outset- or transformed according to environmental, economic, and social criteria. Such buildings can be characterized by resource-efficient construction methods (such as recycled materials and low CO₂ emissions), high energy efficiency (including renewable energy and smart building technology), and socially inclusive usage concepts (such as affordable housing and flexible space layouts). 

Sustainable real estate investments: challenges and opportunities      

The real estate market is undergoing noticeable change: rising energy costs, stricter climate regulations, and the growing demand for sustainable investments are driving the need for new, creative solutions. This affects not only new construction—where sustainable options can be considered in terms of land use, materials, and energy—but also existing buildings, which are renovated and brought up to modern energy standards. 

• Renovation Needs and Energy Efficiency: 
  Many existing buildings no longer meet current energy efficiency standards. Energy renovations can reduce energy consumption by up to 50%, though they require higher upfront investment. Reliance offers an attractive solution here: private investors can invest comparatively small amounts in the construction- or renovation of sustainable buildings allowing the investors to gain a financial return while also having a positive environmental impact. 

• Stricter Climate Regulations and Compliance: 
  The EU Taxonomy and local national regulation, such as Germany’s Building Energy Act (GEG), require that properties meet specific environmental criteria. This regulation is ultimately expected to lead to an increasing investment need in the real estate sector, allowing investors to earn a financial return while being part of the transition and also earning a environmental return. 

• Growing Demand for Green Properties: 
  Studies show that tenants and buyers increasingly value sustainability features—such as lower CO₂ emissions, access to public transportation, and high energy efficiency. The European Property Market Report highlights that occupancy rates for green buildings in major cities are up to ten percentage points higher than for conventional properties. 
  (Sources: https://www.cbre.com/insights/books/european-real-estate-market-outlook-2024/sustainability, https://www.realestate.bnpparibas.de/sites/default/files/document/2024-03/green-building-investmentmarket-germany-2024.pdf)

• Financial Opportunities and Risks: 
  While sustainable buildings tend to have higher construction costs, they tend to offer long-term savings through lower energy and maintenance expenses. This can reduce the risk of rental vacancies and increases asset stability. At the same time, transaction volume and investor interest in the “Alternative Investments – Sustainable Real Estate” segment rose by 15% in 2024. This reflects a growing desire among investors to diversify beyond traditional equity and bond markets. 
  (Sources: https://www.unepfi.org/wordpress/wp-content/uploads/2024/04/PRB_Banking-on-Green-Buildings_final.pdf, https://www.realestate.bnpparibas.de/sites/default/files/document/2024-03/green-building-investmentmarket-germany-2024.pdf) 

• Reliance as your partner in real estate investing: 
  Through Reliance private investors can invest in curated investment opportunities with relatively small amounts. Our investment tickets start as low as 250 Euro. This lowers the barrier of entry and allows for efficient diversification with a relatively small portfolio. 

By expanding into real estate financing, we at Reliance believe we can offer our investors the opportunity to earn dual returns. On the one hand, investors have the opportunity to earn a financial return. On the other, investors have the opportunity to earn a sustainable return stemming from both social and environmental sustainabilit

A Forward-Looking Example from Helsinki, Finland: The VALO Hotel & Work 

The VALO Hotel & Work   in Helsinki, Finland is considered a forward-looking example of sustainable real estate development in the city. The facility demonstrates how urban spaces can be used more efficiently and sustainably through intelligent usage concepts.

In traditional hotels many spaces remain unused during the day. In traditional offices many spaces remain unused during the night. VALO takes an entirely new approach: The same space can be used as a hotel and an office flexibly depending on the time of day. In the day the rooms can be used as fully equipped offices. In the evening the same rooms become comfortable hotel rooms. The transformation happens in minutes while the guest is having breakfast or dinner. This principle of double use applies throughout the entire building, significantly optimizing its usage, and ultimately lowering not only scope one and two emissions but also scope three emissions.  

Flexible Use and Digital Management for Greater Efficiency   

The rooms are designed so that the switch from working space to a hotel room can be done within minutes. Ergonomic desks, digital infrastructure, and ample storage ensure a productive work environment during the day. In the evening, the room becomes a cozy retreat. Booking is handled digitally, allowing visitors to decide spontaneously whether they want to use the space for work, for an overnight stay or both. 

Sustainable Real Estate Investment with High Impact   

Reliance alumni VALO demonstrates how sustainable real estate can be both environmentally and economically profitable. Dual usage cuts operational costs and allows for energy and resource consumption optimization as less space is needed per person. 

This presents an attractive opportunity for investors: VALO proves that real estate projects can combine financial success with social and environmental responsibility. It serves as an example of sustainable real estate investments that are viable in the long term and address today’s challenges in the housing and labor markets. 

Future-Proof Cities Through Innovative Real Estate Concept 

VALO’s concept of dual use allows for shaping the future of urban development through real estate. VALO Hotel & Work connects hotel and working environments, reduces environmental impact, and creates flexible solutions for modern lifestyles. Concepts like VALO Hotel & Work are leading the change in making urban spaces more livable, adaptable, and sustainable – and show the potential of responsible investment in the field of real estate. 

Future-Oriented Logistics in Wiesau: The DFI Future Park Northern Bavaria 

Flexible use in the logistics center: adaptable spaces 

This logistics park in Northern Bavaria offers approximately 32,000 square meters of rental space, including production halls, storage units, and flexibly designed mezzanine levels. The logistics park is strategically locatied near the A93 highway, proxime to a freight transport hub, and within short distance of the Czech border. These aspects provide ideal conditions for efficient logistics operations. 

Investment security: targeted sales and leasing strategy 

A reputable institutional investor has already signed the purchase agreement for the logistics park. The leasing process has been outsourced to an experienced broker network. With construction still ongoing the project team is tailoring the spaces to meet the specific needs of future tenants. Completion is scheduled for 2026.  

Sustainable investment in the real estate sector: forward-looking logistics 

The DFI Zukunftspark  in upper Bavaria demonstrates how sustainable logistics properties combine financial- and environmental returns. As such this investment opportunity offers an attractive expected return for investors. 

Energy efficiency through digital retrofitting: metr in Berlin 

Berlin-based PropTech company metr provides a forward-looking example of sustainability in existing buildings. The company has developed an IoT platform that makes existing heating systems smarter and more efficient. In doing so, metr demonstrates how digital retrofitting can be a cost-effective alternative to comprehensive renovations – with a noticeable effect on energy consumption and emissions. 

Smart technology instead of expensive renovations 

Many heating systems in residential buildings still run on factory settings and are not optimally adapted to the needs of the residents. This is where metr comes in with its technology: the systems are equipped with sensors and a digital control system that automatically optimises operation. This means that energy is only used when it is really needed. 

Savings without compromising on comfort 

In several thousand buildings, metr has already proven that energy consumption can be reduced by up to 35 % . For residents, this means consistent comfort while reducing heating costs. For the real estate industry, this results in significant operating cost advantages – and a direct contribution to the decarbonisation of the building sector. 

Sustainable investment in digital solutions 

metr offers real estate companies a scalable way to make their portfolios more climate-friendly without having to invest in costly construction projects right away. For investors, the company provides an example of how technological innovation in the real estate sector can combine economic success with environmental impact. 

Sustainable real estate investments – a return for both the environment and investors 

Sustainable real estate investment opportunities can refer to both environmental and social returns while offering an attractive financial return to the investors. Ultimately allowing investors to actively contribute to sustainable development while earning financial returns. Real estate also provides investors the opportunity to diversify their portfolio into a new asset class with expected low correlation with other asset classes. 

Reliance offers investment opportunities in real estate including: 

• newly developed and integrate state-of-the-art, resource-efficient technologies from the outset, 
• renovation of real estate to upgrade existing structures  in an efficient and sustainable way, 
• expansion of real estate to make better use of existing infrastructure in a more sustainable and efficient manner. 

Such investment opportunities meet a clear return criteria both from a financial and sustainable point of view.  

Real estate is regarded an attractive asset class as it is regarded comparatively stable with low correlation to other asset classes, such as stocks and bonds, allowing for diversification.  

Like with all (financial) assets also real estate is associated with risk. The risk is strongly dependent on the investment vehicle used for investing in real estate. In real estate backed debt the main risk to consider is the inability to serve the debt and the collateral pledged against this debt. The risk is that the (real estate) operator is unable to service (repay) the debt. They have a known return and risk. 

Info: How Reliance evaluates investment opportunities 

We evaluate each investment opportunity through a clearly defined process to ensure an attractive risk-return relationship. Each investment opportunity evaluated in several stages: 

1. Initial Screening and Scoring: 
   A preliminary selection based on financial metrics, creditworthiness, and business model. 

2. In-Depth Analysis: 
   A detailed assessment of the legal framework and technical factors.  

3. ESG Evaluation: 
   A review to ensure both financial return potential and sustainable return potential is met (e.g., CO₂ footprint, social impact). 

4. Investment Committee: 
   The final decision is made by a panel of experts that consolidates all assessment results. 

Only about 5% of screened investment opportunities make it onto the Reliance platform. 
 
You can find more details about the evaluation process for investment opportunities here.: Investment Evaluation Process.   

Invest Sustainably Now: Your Chance to Shape the Future!  

Investment opportunities in sustainable real estate can offer attractive financial returns while enabling investors to play an active role in addressing global challenges. Join the sustainable investment community on Reliance today and discover attractive investment opportunities that combine financial- and sustainable return.  

Start today and invest in a future worth living! 
  
Here you can find our current investment opportunities.    

FAQ: Frequently Asked Questions from Potential Investors in Sustainable Real Estate  

The post Sustainable real estate investments: real estate as a key to a livable future  first appeared on Reliance - Blog.

What is B Corp?

B Corp stands for ‘Benefit Corporation’ and is a certification that allows you, as a company, to show that you actually do business in a socially responsible way. Oneplanetcrowd obtained its B Corp certification for the first time in March 2016. Obtaining the prestigious certificate is not easy and an intensive process precedes the award. Indeed, in addition to adding financial value, B Corp companies must make a demonstrable impact on people and the environment. The B Corp certificate shows that a company is not just pretending to be sustainable and is not greenwashing. At a time when sustainability is becoming increasingly important, this is a valuable, reliable certification. 

In March, during B Corp month, many certified B Corporations join forces to increase visibility and awareness around corporate social responsibility. So that in the future, more and more companies follow suit to reduce their footprint and take people and the environment into consideration.

How does a company become B Corp certified?  

Companies get B Corp certification only when they meet the high standards set for their social and environmental impact and must account for it. This includes looking at community, customer, environmental, governance and employee impacts. To become a B Corp, an organization must go through an Impact certification process. The questions relate to sustainability in its broadest sense. In the process, a company must score at least 80 out of a possible 200 points. And that’s not easy. To illustrate, worldwide 55% of companies that complete the questionnaire do not receive the certification.  

Once a company is B Corp certified, they are required to communicate transparently about their score. A B Corp certificate must be renewed annually: thus, companies can lose the certificate even if they no longer meet the strict conditions. In this way, the seal retains its value and authority.  

Which companies are B Corp certified?  

The B Corp certificate has been awarded by the American non-profit organization B Lab since 2006. In the Netherlands and Belgium, the first companies in Europe received their certification in 2015. This number has since grown to about 1,100 companies in Europe, of which more than 200 are based in the Netherlands. Worldwide, there are more than 6,000 B Corp companies in 80 countries.  

Reliance Netherlands (formerly Oneplanetcrowd) has been B Corp certified since 2016. In February 2025, the entire Reliance Group received the certification. Together with our investors, we have provided funding to several leading B Corps in recent years, including Kipster, Fairphone, Yoni, Moyee, Snappcar, Mud Jeans, and Seepje. Other well-known B Corps include Tony’s Chocolonely, Triodos Bank, WeTransfer, and Dopper.

Sustainable soap producer Seepje ‘challenged’ by B Corp certification

Reliance helped sustainable soap product Seepje raise their funding in 2014 and 2017. Back then, they were already working hard to make the world a little cleaner and more beautiful by making laundry detergent, all-purpose cleaner and hand soap from soap husks from India and Nepal. Not only should the packaging and the product be sustainable, but also the people in India and Nepal should benefit.  

Jasper Gabriëlse, co-founder of Seepje, spoke to the editors of The Entrepreneur about their journey to achieving B Corp certification. “We see B Corp as a comprehensive assessment of our impact on all fronts. During the first assessment we scored 84.2 points, but we make it a sport to reach 100. The great thing about B Corp is that it inspires and challenges us to make the company even better,” said Jasper. 

The future as B Corp 

We are looking forward to a future in which we will continue to encourage our crowd to invest in strong B Corp brands. If you want to stay informed about our B Corp opportunities, sign up for our newsletter and follow us on the socials.

The post Impact & Investing: Reliance Group receives B Corp certification first appeared on Reliance - Blog.

When and where to invest to your money

When many investors sell company shares due to the economic or political situation, the prices fall – and thus offer others a favourable entry opportunity. This is known as an anti-cyclical investment.

Countercyclical value investing is a popular strategy among long-term investors that allows them to profit from stocks or bonds that are undervalued due to market dislocations. In this way, investors capitalise on the fact that financial instruments are often oversold in bad times and therefore undervalued relative to their substance. As soon as market conditions improve, their prices should rise again, the idea goes.

Mari Lymysalo, Managing Director at Reliance Nordics highlights: “The competition among investors for investments in start-ups and growth companies is significantly lower than before. That’s why growth companies in particular have fallen significantly in valuation due to the lack of venture capital.”

This scenario applies to many growth companies and opens enormous opportunities for investors in the areas of equity investments, venture capital and participation in growth companies in the upcoming year.

The hidden opportunities of private equity, venture capital and growth company investments

There are winners in every market phase. Even in crises or recessions, these can be successful start-ups or growth companies with a forward-looking business model and a well-thought-out business plan. These companies are also called growth companies.

“Selected growth companies offer investors excellent opportunities when it comes to investing in companies with attractive returns – this is where the expertise of specialists who know the markets and act professionally when it comes to selecting suitable growth companies for investment is needed,” explains Mari Lymysalo from invesdor.

Reliance always provides you with expertise for growth companies and venture capital. With us, you will only find pre-selected investments in which you can already get involved with smaller amounts.“

Participation in growth companies usually takes the form of venture capital or private equity investment. In both forms, the investors invest in the equity capital and thus obtain ownership shares in the growth company. Both forms of investment take place before the target company is listed on the stock exchange and thus share or bond investments on the stock exchange are not yet possible. They differ above all in the investment horizon and the investment structure. The goal of private equity investors is the exit through an IPO or the profitable sale of the company.

Growth companies have successfully mastered their start-up phase and are pursuing a forward-looking strategy with qualified management. However, these companies do not yet generate excessive profits with which they could finance further growth. They are dependent on financiers. Since banks continue to be reluctant to lend, the main option for growth companies is the participation of venture capital or private equity investors.

“Investments in this area are usually only accessible to institutional investors, especially since the minimum investment amount often exceeds the budget of private investors. However, Reliance makes it possible to bundle the investments of interested investors and thus also transfer shares in growth companies to private individuals,” says Mari Lymysalo.  

For investments in growth companies, we at Reliance are at your side to finance additional growth or to open up new markets. These growth companies offer excellent opportunities – but also risks that need to be calculated precisely. Our experts analyse the potential success of the growth companies. A growth company will be included in our project portfolio only if this assessment is positive.

Why growth companies are proven to be the best investments for 2025

The effects of numerous conflicts have marked the past years. Triggered by the energy crisis and the lack of supplies from Eastern Europe, Russia and the Middle East, fossil fuels and electricity prices rose sharply. Worldwide supply chains were interrupted or at least significantly restricted. This led to sharp price increases in all areas and thus high inflation.

In order to curb inflation, the central banks raised interest rates several times. The rising interest rates in turn led to a slump in the stock markets, which were only able to recover over the year partially. But the market’s overall momentum has slowed.

Mari Lymysalo, Managing Director at Reliance Nordics explains it as: “The value of growth companies is based on future expectations. The value of these future cash flows decreases as interest rates rise. In the changed market environment, the valuation views of venture capitalists and growth companies have diverged, and it has taken some time for them to align,” says the venture capital investment expert.

Mari Lymysalo’s tips for investing in growth companies at a glance: 

• Define investment objectives 
• Spread across different asset classes and also within an asset class 
• Exploiting the opportunities of crowdfunding 
• Finding the right mix: a good business model with growth prospects 
• Be well-informed and make well-considered decisions 

Why invest with us?

The Reliance Group has been active in the market for over 10 years and is at home in many European countries. Since then, we have become one of the largest financing and investment platforms on our continent. 

To date, more than 194,000 investors have invested over 550 million euros in European companies in more than 1000 projects. Fairness, collaboration and agility are the pillars of our corporate culture. In the areas of crowdinvesting and crowdlending, investors can participate in forward-looking companies with smaller amounts. 

As an awarded and innovative platform for crowdinvesting, our company is represented in five core countries in Europe. The focus is particularly on industries that deal with climate change and people’s health. With venture capital, we support these future industries and thus offer our clientele attractive entry opportunities. Private investors thus have the option of directly participating in growth companies that are not traded on any stock exchange.

Read also:
Learn all about how we select your investment opportunities
Fixed interest or equity investments – which type of return are you aiming for?

The post Growth companies: The best investments for 2025 first appeared on Reliance - Blog.

Reliance brings together innovative entrepreneurs and forward-thinking investors to accelerate the transition to a sustainable economy. Citizens are also regularly successfully involved in this transition where they can benefit from the returns of local projects. Windpark Fryslân’s starting point was to allow local residents to participate in the revenues from the wind farm in their own neighborhood. Together with invesdor’s investment platform, Windpark Fryslân raised the overwhelming amount of $27 million from 2609 investors in a period of six weeks. This instantly made this project Europe’s largest crowdfunding initiative for renewable energy.

The post Reliance organized Europe’s largest crowdfunding campaign for renewable energy first appeared on Reliance - Blog.

‘That the world needs change is beyond question,’ says Reliance CEO Christopher Grätz. He also emphasizes, ‘But it won’t change on its own – someone has to take action. And, above all, someone has to finance it.’ As a pan-European impact investing platform that emerged from the merger of several platforms from different European countries, Reliance has focused on one key question: If the most significant progress in the world is made by adventurous, entrepreneurial individuals who have the courage to think differently, what if we gave this opportunity to everyone? The opportunity to decide what kind of future they want to pursue? The chance to choose which companies can bring about this change? And the chance to participate in financing it all?

At invesdor, we believe that investors can shape their future by investing in companies they believe in. This forms the basis of our call to investors: Let’s finance the future together. People have long decided – as shown by societal trends in recent years – what this future should look like: more sustainable, more equal, and more responsible. ‘Sustainability is a huge market, with corresponding massive interest and investment capital,’ says Christopher Grätz.

With the merger with Oneplanetcrowd, Reliance has positioned itself as a leading European impact investing platform: Oneplanetcrowd has long pursued a targeted impact strategy, focusing exclusively on projects that have a clear impact on one of the 17 United Nations Sustainable Development Goals (SDGs).

In the meantime, the entire Reliance Group has set the goal of presenting investors exclusively with projects that contribute to a sustainable world of the future. To achieve this, we have formulated two essential sustainability guidelines:

1. All Reliance issuers and their projects undergo an ESG risk assessment before being listed.
2. For all projects, the impact on at least one of the mentioned SDGs is determined through measurable Key Performance Indicators (KPIs). The ‘Oneplanet’ label highlights outstanding projects.

We take these guidelines very seriously – they have the same priority for us as credit risk policy does for loans and investment policy does for equity projects.

ESG: Responsible in Three Areas

ESG is one of the aspects at the core of invesdor’s guidelines for sustainable investing. The abbreviation stands for Environmental, Social, and Governance and refers to the three central factors for measuring the sustainability of an investment. Environmental criteria (represented by the ‘E’ in ESG) address how a company contributes to solving environmental issues (e.g., waste, pollution, greenhouse gases, deforestation, and climate change). Social criteria (the ‘S’ in ESG) relate to the treatment of employees and customers by the respective company (e.g., human capital management, diversity and equal opportunity, working conditions, health, and safety as well as misleading sales). Governance criteria (the ‘G’) examine how a company is managed (e.g., executive compensation, tax practices and strategy, corruption and bribery, as well as diversity and structure).

The growing importance of ESG in finance is based on the simple idea that companies deliver high returns when they create value for their stakeholders – employees, customers, suppliers, and society as a whole – and not just for the company’s owners.

How Reliance Assesses ESG Risks

The ESG analysis can be complex. When considering ESG factors, it is not only about evaluating the products and services of a company but also its behavior, its supply chain, and other aspects related to its corporate governance. As part of our ESG risk assessment, we investigate whether the company has negative impacts on sustainability factors such as environmental, social, and labor issues, respect for human rights, and the fight against corruption and bribery. In addition, we assess whether a company is exposed to serious sustainability risks, meaning an ecological, social, or governance event or condition that could significantly impair the value of the investment if it were to occur.

The goal of the ESG risk analysis is to identify both risks and opportunities and thus uncover potential areas for improvement. At invesdor, we firmly believe that a more forward-looking and dynamic approach is needed when evaluating ESG risks and opportunities. Furthermore, an ideal analysis should not only consider the latest ESG data but also the company’s strategy, overall impact, and evidence that it adheres to its promises and standards. It should also include a forward-looking perspective, so that investment decisions are not based solely on historical data.

The ESG risk assessment is a free analysis that Reliance conducts for every new project that is to be placed on the platform. The goal of this assessment is to answer the following two questions:

1. Does the project harm the environment, society, and/or stakeholders?
2. Could the value of this project be jeopardized by ESG developments?

If the answer to either of these questions is ‘Yes,’ the project will not be included on the Reliance platform.

The table below contains some examples for each of the ESG criteria:

The 6 environmental objectives of the EU, as defined in the Taxonomy Regulation, are:

1. Mitigation of climate change,
2. Adaptation to climate change,
3. Sustainable use and protection of water and marine resources,
4. Transition to a circular economy,
5. Prevention and reduction of environmental pollution, and
6. Protection and restoration of biodiversity and ecosystems.

Impact: Doing Good – and How Reliance Measures It

The potential of companies or projects in terms of impact investing is also part of invesdor’s sustainability guidelines. Impact investing means investing in something that measurably contributes to one of the goals for sustainable development, the aforementioned SDGs. It is a form of sustainable investing that goes beyond simply excluding companies or countries. With impact investing, investors achieve not only financial returns but also a positive sustainable impact. ‘Reliance decided to use the SDGs as a framework for determining intended and realized impacts,’ explains Christopher Grätz. The SDGs serve as a blueprint for addressing the biggest societal challenges of our time, such as combating diseases (SDG 3) and renewable energy (SDG 7). Together, the SDGs form a roadmap for achieving peace and prosperity for people and the planet, now and in the future. ‘Reliance only awards the impact label to companies in the financial sector that make a positive contribution to at least one of the SDGs,’ says the Reliance CEO.

Where Reliance Draws Red Lines in Terms of ESG and SDGs

To emphasize that Reliance does not compromise in certain areas, we have identified specific services, products, and sectors that are under no circumstances acceptable for the platform and thus cross the red lines. As such no-gos, Reliance excludes projects from companies that:

• Are involved in the production, marketing, or sale of tobacco and cannabis products for recreational use.
• Are involved in the gambling industry or provide services in this sector.
• Manufacture weapons, specifically designed components for weapons, or provide weapons-related services. Companies involved in the production or sale of dual-use technologies. Dual-use technologies are subject to strict scrutiny, as their products must not be intended to inflict physical harm on humans or animals or contribute to such harm.
• Have a high risk of using conflict minerals or those who mine and supply such minerals without making efforts to source conflict-free minerals. Reliance also requires this from its suppliers.
• Operate in the sex industry.
• Conduct animal testing that is only acceptable for legitimate medical purposes, and Reliance does not place companies that do not conduct carefully controlled animal testing based on the principles of ‘reduce, refine, replace.’
• Use animal products or ingredients and do not have animal welfare policies and practices that go beyond legal requirements. We prefer companies that have clear goals for improving animal welfare and actively advocate for better animal welfare standards in the industry, as well as companies that offer plant-based alternatives for the production or use of animal products.
• Do not contribute to sustainable fishing and aquaculture practices.
• Are involved in the production and sale of fur and specialty leather for which animals are bred.
• Cause extensive or repeated damage to biodiversity or are in businesses with a high potential risk of causing such damage without managing these risks.
• Show no awareness of deforestation, do not practice sustainable forestry, and do not source and use responsible forestry products.
• Are unaware of climate change and do not make credible efforts to eliminate their greenhouse gas emissions and find alternatives to non-reducible emissions as quickly as possible.
• Are unaware of the dangers of using hazardous substances and do not contribute to the introduction, development, and promotion of less harmful alternatives.
• Are involved in accounting irregularities or irregularities in compensation that raise significant ethical and moral concerns.
• Offer excessive compensation and remuneration packages for directors that do not comply with local or international standards for best practices.
• Are involved in irregularities related to corruption, bribery, or money laundering.
• Engage in tax avoidance schemes that raise serious ethical or moral concerns and clearly violate local or international standards.
• Are involved in violations of laws and regulations, codes of conduct, or conventions, unless there are indications of structural change within the company that lead to fundamental behavioral changes.

We believe that with the Reliance investment guidelines, we can contribute to perhaps the most pressing issue of our time: the transition to a more sustainable, equitable, and responsible economy.

The post Sustainability: How Reliance Implements ESG, SDGs, and More first appeared on Reliance - Blog.

Beets & Roots in a nutshell  

beets&roots is a German fast-casual restaurant chain that offers healthy and environmentally friendly food. Beets & Roots GmbH was founded in 2016 in Berlin by entrepreneur Max Kochen and Michelin star chef Andreas Tuffentsammer to meet the need for healthy lunch options for busy people.  

Today, beets&roots has 16 restaurants across Germany. With Beets & Roots GmbH’s latest successful funding round at invesdor, they plan on opening three more restaurants at the main train stations in Berlin, Cologne and Hamburg. In an interview from 2023 Max Kochen outlines beets&roots growth journey after previous funding rounds with invesdor. 

Opportunity to higher returns on investment 

Beets & Roots GmbH has raised a total of five funding rounds on invesdor’s platform (see chart for more information).  In the latest funding round, beets&roots experienced exponential growth, more than doubling its turnover and attracting over 1.5 million euros from investors across Europe. With each round, investors were not only drawn by the financial opportunities but also by enticing bonuses, including up to 50% discounts on orders, enriching their investment experience. 

For the first time Beets & Roots GmbH’s funding round was offered on all Reliance websites: Germany, Austria, Finland, the Netherlands, and the English website welcoming investors from all over Europe. Previous rounds have only been open to investors in Germany and Austria. 

Beets & Roots GmbH has chosen different financial instruments for their funding rounds throughout the years. This demonstrates well how growth companies and investors benefit from the different financial instruments Reliance has to offer.  

In their last round in January 2024 Beets & Roots GmbH decided to raise equity. Equity investments offer investors a stake in the target company allowing the investors to reap the full potential upside in the company. As Beets & Roots GmbH is aiming for an exit in 2026, the investors have the opportunity to earn a substantial return on their investment in the coming 36 months. 

Make an impact with your choices 

By investing in innovative and sustainable businesses, investors do not have the opportunity for a financial return but also make an impact by helping companies like Beets & Roots GmbH drive sustainability and a better future for Europe. Read more about invesdor’s commitment to impact investing. 

Beets & Roots GmbH is committed to drive sustainability in all parts of their business. In practice, they source most of their ingredients from local suppliers and promote sustainable farming practices by working with Klim.  

As a consumer you can be at the forefront of change for a sustainable future of Europe by choosing a plant-based alternative to meat and opt for reusable takeaway packaging. 

As an investor you can be at the forefront of change for a sustainable future of Europe by investing in companies driving sustainability in their operations. Your choice matters! 

If you want to stay informed about upcoming investment opportunities, sign up for our newsletter and follow us on our social media channels.  

The post Beets & Roots is an investor favorite at invesdor first appeared on Reliance - Blog.

*The Digital Economy and Society Index (DESI)

8 reasons to Finnish MedTech companies’ success

1. Finland boasts a high-quality healthcare system with advanced infrastructure and skilled healthcare professionals. This provides an ideal environment for testing and implementing new medical technologies.
2. Well-established and transparent regulatory environment makes it easier for medtech companies to navigate the regulatory processes required for clinical trials and product approvals. Efficient regulatory pathways can accelerate the development and commercialisation of medical technologies.
3. Universities, biobanks, hospital districts, and several international pharmaceutical companies collaborate and invest in digital health infrastructure, creating a supportive environment for the development of healthcare technologies. This includes electronic health records, telemedicine, and other digital solutions that can facilitate the integration of new technologies.
4. Finland has a highly educated and skilled workforce, including professionals in healthcare, engineering, and technology. This talent pool is essential for the development, testing, and implementation of innovative medtech solutions.
5. While Finland has a relatively small population, its proximity to other Nordic and European markets provides companies with access to a larger patient pool for clinical trials and a broader market for commercialisation.
6. The Finnish government actively supports research and development initiatives, offering grants, funding, and other incentives to promote innovation in various industries, including healthcare and medtech.
7. Finland is known for its commitment to ethical and transparent practices, which is crucial in clinical trials and healthcare research. This reputation enhances the credibility of studies conducted in the country.
8. Finland actively engages in international collaboration and partnerships, allowing medtech companies to benefit from global networks and expertise.
    

Sources: The Digital Economy and Society Index (DESI), FinnGen, Sailab – MedTech Finland ry, ITA .

Investing in MedTech startups

Startups in the MedTech industry often bring innovative solutions to healthcare problems, offering the potential for significant advancements in medical technology. 

The demand for new and improved medical technologies is consistently high as the healthcare industry seeks solutions for better diagnostics, treatment, and patient care. Emerging technologies may address unmet needs in the market creating opportunities for significant growth. Successful MedTech startups that bring disruptive technologies to market can yield high returns on investment, especially if the company is acquired by a larger healthcare corporation. 

The post 8 reasons for the success of Finnish MedTech companies first appeared on Reliance - Blog.

Max, you founded Beets & Roots in 2016 together with star chef Andi Tuffentsammer. You offer healthy bowls, salads, wraps and high-quality soups in your restaurants and via online ordering. You first financed your growth via crowdfunding on Reliance in 2019, and you are now in your fourth crowdfunding round. How did you get into crowdfunding? 

At that time, we only had our first three restaurants in Berlin and wanted to expand further. With our ordering system via the internet, we had a real boom phase at the time and wanted to expand that further. We used the capital to open more restaurants. In the meantime, the investors have received their 750,000 euros back, along with 8.5 per cent interest per year and a one-time profit interest of 5 per cent. So it was a complete success for us and for the investors.

Your second funding campaign was then in October 2021, in the middle of a peak phase of the pandemic. Wasn’t that risky?

Corona was like a dark shadow over us at the time. But we wanted to continue the growth course and reach more customers with our own app, among other things, despite the pandemic. It was important for us to become a mobile-first company in the next step, and we made up for it. In addition, we want to take customers and investors along on our journey to climate neutrality 2025, which we had set as a goal. Our products, the brand and our target group fit very well with the theme of sustainability. That’s why we designed the second campaign differently.

What did you do differently from the first time?

This time we did not pay interest on a subordinated loan from our investors, but issued 16,000 shares in our company as participation rights, which corresponds to 8.7 percent in our company. In return, the basic interest rate was lower at 5.0 percent. With the participation rights, we offered investors a new participation model, especially since we tokenised the shares, i.e. issued them digitally. This allows investors to participate in the increase of the company’s value. We were among the first in Germany to choose this path.

Was that well received?

Yes, after only 22 days we had the 1.1 million euros together. The goal of this financing round was to also expand nationwide with restaurants in Stuttgart, Frankfurt am Main and Düsseldorf.

In 2022, a third round of financing for 537,000 euros took place. Did you take the big leap after the Corona pandemic? 

That’s one way to put it. In the third crowdfunding round, the main focus was on financing our new high-frequency locations in Berlin at Potsdamer Platz, at the main railway station and at BER airport. Here, too, crowdfunding was the best fit because we had already won the leases and were able to appeal to the travel industry at the same time. For investors, this was an interesting investment opportunity. We always finance everything in a mix, which means we financed both equity and mezzanine capital via the crowd. In terms of marketing, we focused less on the retail investor and more on the semi-institutional investor.

You also joined a large family office, which brought you 2.7 million euros for 18.5 percent of the company shares. Why did you turn to the professional investor?

For us, it is important to create stable growth, and for that we need a stable financing structure with substantial equity. That’s why we didn’t want to focus everything on the crowd, especially in uncertain times where the equity cushion always plays a big role. We need strong partners, we need a strong equity ratio. That is also in the interest of the crowd. 

Is this participation of a family office directly linked to distributions or does it only rely on an increase in the value of the company?

There are no distributions, we are a growth company and reinvest our cash flow in our growth projects. This is also comprehensible for all existing shareholders and crowd investors. No one has to fear that any shareholders will be served from crowdfunding funds.

How is the fourth crowdfunding round offer constructed?

In terms of company law, it is the same as the first and third rounds, so it is a subordinated loan. But because of the increased interest rate environment, we have also increased the interest rate to 10 per cent. In addition, a one-off success interest of another 10 per cent is possible. The financing costs have risen for us, as they have for all companies, which is why we now have to offer investors a higher return.

What sum are you aiming for and what do you intend to do with it?

For example, we currently have the second contract with Deutsche Bahn in the pipeline for Ostbahnhof, where we would like to open a restaurant. We are hoping for investor money between 500,000 and one million euros. We would also like to use the money to expand the licence business. We already have two licensed stores with partners, for example in Frankfurt. We want to grow in the markets outside of Berlin primarily with licence partners, simply because it enables operational stability and faster growth.

Where does beets & roots stand today, how has the business developed?

We now have 14 restaurants in five major cities. In 2022, we had a turnover of 7.2 million euros including the licence partners. For 2023, we expect a turnover of around 11 million euros. We also have initial cooperations with Rewe and Edeka, which resell our bowls from the freezer. The delivery services Flink and Gorillas have also included our dishes in their range. The desire for healthy, sustainable gastronomy is huge.

You have remained loyal to Reliance as a crowdfunding platform for your campaigns. What are the advantages for you? Why did you choose invesdor?  

At the end of the day, what counts for us is the relationship of trust, which also comes from our circle of shareholders. From the first to the fourth campaign, the cooperation with Reliance has been characterised by a high level of professionalism. That gives us a very good feeling. After all, we also enter into liabilities with this form of financing and want everything to be based on the highest legal and social standards, both for the investors and for us. Reliance guarantees that.

Another huge plus is the flexibility and simplicity. Existing banks are more cumbersome in the financing process than a modern, digitalised partner like invesdor.  In addition, Reliance itself is a growth story and has continued to expand through mergers and continuous improvements to the platform and investor experience. This shows us that we are betting on the right partner.

So further crowd campaigns with Reliance are not out of the question?

Absolutely not! The bigger we get, the bigger the funding pots get, and the mix can certainly change in some way. But the crowd always plays a big role for us. As long as it works for us and for the investors, we want to continue the cooperation.

The post Interview with Max Kochen from beets & roots first appeared on Reliance - Blog.

Maarten, how did you get into crowdfunding? 

Before working for Oneplanetcrowd, I ran an investor network for companies in emerging markets that helped raise capital. Then I got to know the crowdfunding platform Kickstarter in the US when it came to the Pebble Watch, the first smartwatch at the time. The watch had already been developed and was offered for pre-sale on Kickstarter. The company wanted to collect 100,000 dollars, but in the end, over 50 million were raised. It was a huge success and a very effective and innovative way to raise capital. That’s how I got to know crowdfunding and was inspired by it.  

How did the founding of Oneplanetcrowd come about? 

One of the investors in my network was Start Green Capital, a fund company that primarily invests in the energy transition in the Netherlands. When I spoke to one of the fund managers there, it turned out that Start Green already had the idea of a crowdfunding platform for sustainable investments or impact investing in the Netherlands. At the beginning of 2012, we decided to launch that. My job was to bring the platform to market together with Start Green Capital. Since the founding of Oneplanetcrowd, we have financed 300 companies with 35,000 investors and with a volume of around 120 million euros. 

In the meantime, you have announced that Oneplanetcrowd will merge with Reliance Group. Why? 

We announced the merger of Oneplanetcrowd with Reliance months ago, but we have only now received approval from the regulatory authorities in Finland, the Netherlands, Germany and Austria. In April we will be able to close the merger formally. But the two companies have already been working closely together since November. First, we want to merge the crowds of both platforms. The goal is to give investors access to all investment projects with just one login. We want to realise it this summer.  

One of the main reasons for us to merge with Reliance was that Reliance is already active internationally and across borders. Conversely, Reliance chose Oneplanetcrowd because we are highly specialised in impact investing here, including projects around renewable energy in the Netherlands. We are now working to build the people, expertise and network for sustainable projects in invesdor’s locations in Finland, Germany and Austria.  

What changes does the merger bring to your daily work? 

As Managing Director Benelux of the Reliance Group, I continue to manage the team in Amsterdam, which looks for interesting sustainable investment projects to offer to crowdinvestors. The big difference is that we can now offer financing projects from our colleagues in Finland, Germany and Austria to Dutch investors. Conversely, we can also offer our investment projects in these partner countries. We expect more “crowd power” with larger business projects and faster capital acquisition via a larger European platform. This opens up many more opportunities. I can also reveal that we are planning, among other things, to expand to Belgium in the near future.

Do you have an example of a successful financing project in the field of sustainability and impact investing? 

Yes, for example, Fairphone. This is an Android smartphone made with metals and minerals from sustainable supply chains that can be repaired and upgraded by the owner. So users don’t have to buy a new smartphone when their old one is broken or obsolete. The project has enormous sustainability potential, as e-waste is also a significant problem of our time. We funded Fairphone in 2018 with 2.5 million euros. The crowdinvestors were among the core investors at the time and have contributed significantly to the company’s profitability today. Now the investors can sell their shares in a new financing round with a good return. That is an excellent success story. 

What kind of funding rounds do you typically organise?

Fairphone is an example of scale-ups, i.e. successfully launched young companies that need to finance their rapid growth. But we also accompany many new renewable energy projects in the Netherlands. Actually, they could quickly raise capital through private equity investors or banks. But for projects like solar panel fields or wind turbine parks, the regional authorities in the Netherlands require that a certain percentage of the capital must be investable by local residents so that the local community also benefits from the projects. Together with the project managers, we then organise a financing campaign in the region intending to increase the acceptance of the projects via citizen participation.  

Does that go down well with the citizens?  

Yes, it is very attractive for investors because they finance a project with a good return and very low risk. Usually, these projects are mature, all permits are in place, and contracts with the grid operators or electricity consumers are already signed. Local citizens share in the revenues and become an immediate part of the energy transition. People like that and it attracts many citizens. 

If renewable energy projects are often a local issue, what is the benefit to investors of a larger crowdfunding platform operating across Europe? 

Local projects indeed remain local for the time being. But often the projects are big enough to attract investors from outside. We often open up investment to outside crowdfunding investors after the local participants had their chance to invest. In this way, German investors will also have the chance to invest in a Dutch wind farm in the future.  

Have the interests of crowdinvestors changed over the years? 

We believe that more and more people in Europe are increasingly interested in investments that offer them both a financial return and a sustainability return. We call this a double return. Our employees, entrepreneurs and investors all think similarly: use business as a source of good. I believe this movement will grow significantly in the coming years.  

Through the combined investor crowd, we will attract more of Europe’s most promising and ambitious sustainable scale-ups. We also want to follow the companies through several funding rounds and offer larger funding volumes as they grow. In fact, the funding campaigns are getting bigger: we started with funding volumes of 10,000 to 20,000 euros, and today, the average is one million euros per project. If we channel this into impact companies, the contribution to sustainability also becomes bigger and bigger. Our impact as a platform will grow substantially.  

Investing money in sustainable investments with a good return does not have to be contradictory. Read more: crowdfunding platforms allow you to invest funds sustainably in a growing market in times of the energy transition and increasing environmental awareness and to advance meaningful projects together.

About Maarten de Jong 

Maarten de Jong is co-founder and CEO of the Dutch crowdfunding platform Oneplanetcrowd. After graduating in Technical Business Administration from the University of Groningen (NL) and spending six months in Sri Lanka, he started working in the Netherlands for the Business in Development Network, where he and his team arranged funding opportunities for many entrepreneurs in emerging markets. He built a network of more than 150 business angels, high net worth individuals, banks and development banks, and venture capital funds. In 2012, he co-founded Oneplanetcrowd with Coenraad de Vries and Laura Rooseboom under the StartGreen Capital umbrella. Oneplanetcrowd specialises in financing sustainable and social initiatives that offer investors financial and social returns.

The post Reliance expands to the Netherlands: “We expect significantly more crowd power”  first appeared on Reliance - Blog.

Investors‘ most prominent challenge for 2023: Inflation

After the pandemic-related supply chain issue, which had already boosted the prices to rise significantly, the shortage of goods produced in Ukraine, for example, has further exacerbated price inflation. The result: inflation at a historically high level. The inflation rate in European Union was 10.40 per cent in December of 2022. Although inflation in the Eurozone may have passed its peak by now, the European Central Bank (ECB) itself still expects an inflation rate of around 6 per cent for the year as a whole.

For investors in search of returns, this means, among other things, that the days of comfortable investing are over for the time being. Thus, high inflation does not only mean that daily life is becoming more expensive – it also implies that it is more demanding to make money work for you. 

A supposedly high return quickly shrinks when inflation is deducted; the real return is then considerably lower. Let’s make a simple yet realistic calculation: if you receive a profit of two per cent, with inflation at six per cent, the bottom line is a return of minus four per cent.

Growth companies’ valuations have fallen to attractive levels 

In the wake of the turbulence in the capital market and the associated inflation, the availability of venture capital has declined noticeably in recent months. Valuations of growth companies have been significantly revised downwards, resulting in a very attractive valuation level. This offers investors the ideal opportunity to get in on promising companies. In other words: Those aiming for long-term investment success can now seize attractive return opportunities at low price levels, i.e. at particularly favourable prices.

1. Invest in promising industries 

Market sectors such as energy and health in particular offer exciting investment opportunities. For example, comprehensive trend reversals are currently emerging in the health and energy sectors. Through the pandemic, health-related topics are experiencing a boom. This has been shown not least by the great interest in the market for vaccines and in the corresponding manufacturers.

Against the backdrop of the war in Ukraine and the associated sanctions against Russia, the question of a secure energy supply is becoming increasingly acute. As a result, suppliers from this supposedly conservative industry are suddenly the focus of the media and the capital market. Many start-up companies in these sectors are offered corresponding growth opportunities. And thus also for the portfolios of those who invest here.

2. You can use your investment to help solve the biggest challenges of our time

Those who become financially involved in the areas listed below achieve two things. On the one hand, it is possible to increase one’s chances of a worthy return: one can profit from fixed interest rates, for example, as is possible in renewable energy projects or from the performance of growth companies. This allows one to participate in exciting and promising trends at a very early stage, for example in:

• clean energy
• medical technology
• the regenerative model of the circular economy (keyword sharing) 
• the principle of equality 

On the other hand, investing in the health or energy sector can be considered impact investing. This means that investments not only have the purpose of increasing capital, but also have a social and/or ecological component. Impact investors thus make an important contribution to tackling the greatest challenges of our time. The fact that political decisions based on citizen participation are sometimes taken into account in these fields should also be interesting for all those investors who also attach great importance to basic democratic principles in their investments.

 3. Keep an eye on European growth companies 

The past three years have shown one thing: The dependence on global supply chains is a significant economic weakness of our continent. This makes room for new innovations and offers enormous opportunities for fast and growth-oriented European companies.

Through reliancetrade.org you have the opportunity to utilise the rising trends and take advantage of the associated opportunities. Invest like venture capitalists who invest in promising companies in the early stages of a business cycle. Benefit from the continuous earning power of traditional medium-sized companies. In short: Benefit from the broad spectrum of opportunities on Reliance – for high diversification and optimal risk spreading. In addition, you combine financial commitment with an overriding goal: shaping the future. And you strengthen the European economy. 

Three reasons to invest in growth companies on reliancetrade.org: 

• Seize opportunities with top companies in growth sectors and defy inflation
• Investing for the benefit of society and the environment with impact investing
• Strengthen the European economy and reduce dependencies

The post Where to invest this year – identify 3 opportunities first appeared on Reliance - Blog.