Putting your money behind community energy, affordable homes and other projects with a positive impact is getting simpler, as Triodos Bank brings its crowdfunding investments onto Ethex.
The migration took place on 8 September. All future Triodos crowdfunding offers will be hosted on the Ethex platform, giving investors one place to find opportunities from both organisations and manage their holdings.
For Good With Money readers who want a closer connection between their investments and the difference they make, it’s a welcome move. Bringing together two experienced ethical finance organisations should help more people discover projects they want to support, and help those projects reach more potential investors.
A shared home for positive investment
Together, Triodos and Ethex have raised more than £330 million for over 300 projects. That includes £246 million for 264 climate-positive projects.
Their work spans renewable energy, community-led initiatives and organisations meeting social needs. By combining their investor communities on one platform, they aim to get more money flowing to these businesses and projects.
Ethex, which was established in 2013, has built a community of more than 29,000 positive investors. Triodos brings more than 25 years of experience arranging investments through its corporate finance team.
Both will continue independently to find investment opportunities in their specialist areas. Triodos will develop and structure new offers, which will be clearly identified alongside Ethex’s own opportunities.
Mark Clayton, CEO at Triodos Bank UK, said: “By partnering with Ethex, we can now offer more investors even greater access to these high-impact opportunities.”
What changes for investors?
The practical benefit is a single portfolio view and simpler account management for investments brought together through the partnership.
Ethex will handle investor records, payments and online accounts, providing support for Triodos crowdfunding investors and the organisations they’ve backed.
There is also continuity behind the scenes. Both platforms have used ShareIn, the specialist provider supporting payments and investment platform technology.
For people exploring direct impact investing for the first time, Ethex offers opportunities starting from £50, although minimum investments vary between offers. Investors buy shares or bonds issued by organisations seeking funding for activities that benefit people or the environment.
That gives investors a clear view of what their money is intended to support, whether that is generating clean electricity or helping a social enterprise expand.
The difference that funding can make
Recent fundraising through Ethex gives a flavour of the projects this approach supports.
Bath and West Community Energy raised more than £750,000, while Low Carbon Hub raised more than £500,000 towards a community-owned battery project in Oxfordshire.
These are examples of how individual investments can come together to fund local energy infrastructure, helping communities play a greater part in the shift to cleaner power.
The partnership gives projects access to a wider pool of investors, while bringing more choice together for people looking to put their money to positive use.
Lisa Ashford, director and co-CEO at Ethex, said: “We believe that now more than ever we need to move with urgency to meet the demand for capital that we are seeing from impact-driven enterprises.”
Making an informed choice
Some bonds offered through the platform are eligible for an Innovative Finance ISA, allowing qualifying investors to receive interest tax-free. Eligibility and tax treatment depend on the investment, your circumstances and the rules in force.
It’s important to read each offer carefully. These are investments, and returns are not guaranteed. They can be difficult to sell, you could lose some or all of your money, and they are not covered by the Financial Services Compensation Scheme.
Find out more about investing through Ethex.
