Sardar Mohazzam Apr 25, 2015 07:47 ![]() |
Hi
Welcome to the MIT Climate Colab contest. It is a great pleasure to read your proposal. We are looking forward for further details in your proposal.
Best
Sardar Mohazzam
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Carl Fischer Apr 26, 2015 12:12 ![]() | Proposal contributor
There are several key steps involved:
1) The financial structure consisting of a Business Development Company (BDC) which is an
established format in the US and can be listed on any stock exchange.
http://www.investopedia.com/terms/b/bdc.asp
It allows to raise the investment funds (pre-listing)from foundations with a mission in the
sustainable water and/or renewable energy sector (Mission Related Investments = MRI)
https://www.missioninvestors.org/mission-investing,
venture capital investors and so called accredited high net worth investors.
Here the BDC's acts like a privately funded infrastructure fund. Its role is to identify
and subsequently invest in start-ups and small and medium (SME) sized firms with novel
technology assembled in an innovation lab
http://www.rockefellerfoundation.org/blog/how-social-innovation-labs-contribute/
2) The Lab acts as an incubator/accelerator. Together with the local community using civic crowd
funding/participation platforms
http://www.ssireview.org/blog/entry/civic_crowdfunding_a_new_way_of_spending_down
the Lab determines which of the firms identified are suitable
candidates to implement their technology in the given municipality. The firms selected will
receive the necessary capital from the BDC while the BDC in return will become a shareholder
in these companies.
3) The companies will start implementing their technology while the BDC will be listed on a stock
exchange. Once listed everybody can buy and sell shares in the BDC which means that
a)unaccredited investors can invest
b)initial investors (foundations etc.) can sell their shares should they so wish
c)the BDC's capital remains unaffected by these transactions
4) After successful implementation the companies start to grow, create jobs and revenues and
become (hopefully) profitable. The BDC continues to assist their management and helps - if
necessary - finance their growth. At some point the BDC will sell its shares in these
companies (hopefully) at a profit while the companies continue to operate.
5) The resulting sales proceeds will be reinvested by the BDC into a new round of investments
into start-ups and SMEs thus continuously supporting new developments in the water/energy
sector.
Companies and start-ups that lend itself to such an approach are increasingly to be found in the
waste water and sewage treatment sector, where more energy is generated while treating the water than is actually needed, i.e.:
http://janickibioenergy.com/
http://www.aquaporin.dk/
http://www.monsal.com/
But also in sectors that deals with available hydro power in a city's pipe network:
http://aquakin.com/
http://www.lucidenergy.com/
These are merely a few examples.
Hopefully this explained our proposal in more detail.
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Carl Fischer Apr 27, 2015 01:43 ![]() | Proposal contributor
Hi Sardar,
I noticed your thoughts in your 2014 proposal were somewhat along
the same line of thinking.
While I am in favour of crowd funding, I think the SEC more or less stopped it
in its tracks. The necessary funding in the environmental sector is substantial
and if it is to be privately funded significant "players" have to be attracted.
The money is there. It just needs to be offered a structure - like the BDC - which
offers liquidity. Once that is available it will offer both: an attractive opportunity
for institutional funds as well as for unaccredited investors.
Best
Carl
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