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.
3. Problem
Nigerian Population: 180 Million
Average Access to Energy: 30%
Energy Poverty is so bad we lose 350 hectares of
woodland yearly for cooking Energy
Habiba Ali
4. Sosai RE Company Mission statement
We have as a mission on this journey:
• To Provide Better livelihoods to a minimum of 1000 communities in northern Nigeria
by 2020 through Renewable Energies.
5. Solution By Sosai
Sosai Renewable Energies Company
provides reliable technologies like Solar
Lamps, Home systems and improved
cook stoves that completely eliminates
any form of pollution and promotes all
year farming through better irrigation
services. Constant energy for
educational opportunities and increase
in economic status of the people in
general
6. Value Proposition
Core Sosai Promise
High Quality Certified By Lighting Global
Ensuring Seamless behavioral process
7. Market sizing
Total Addressable Market : 19
northern States
The Served Available Market:
Over 12 Million people of
Communities in Kano, Kaduna,
Katsina, Niger and Zamfara
states. With the same
demography. Age range between
18-65 years.
8. Impacts so far
• 50,000 ICS and 2500 Solar
Products.
• 317, 500 People
• 70 MASI (30% Income rise)
• 103,000 tonnes CO2
• Reduction in Family expenditure
30%
• 160 Artisans
• 2 Mini Grids
• Agro Processing units
9. Competitive Advantage
End User Financing through Payment in installment
Positive Livelihood Impact is our main goal
Wide rural and community based network
High Function products delivering value for money.
12. Strategies to
reach our
goals: 5P’s
1. Product: Pay as You go Solar
Energy options. Delivering Better
payment plans, Better service
levels
2. Price: Using COGS in pricing and
the Pay as You go Model. Prices
of Products range between
N4000 (10USD)- 1,200,000
(3000USD)
3. Place: Sosai Premises/
Experience Center Micro
Enterprise of (MASI) Women and
Community heads
4. Partnerships: Suppliers,
Distributors, Multilateral Bodies
and District heads
5. Promotion: Fours Step, Educate,
feature, benefits and loyalty.
13. Why Crowd Funding?
Market availability
Lighting Global Certification on Products
Sosai Team Expertise
Cost of Products
Expensive Working Capital
Short repayments
Investors Requirements
14. Crowd Funding Experience
Organization Year Amount
Kiva 2013/2014 $22,950
Kiva (DSE) 2016 $35,000
Bettervest October 2017 €112,200
Bettervest November 2017 €112,200
Bettervest March 2018 €224,400
15. Impact of Crowd Funding to Sosai
Achievement of the
impacts listed
beforehand
Growing a large base of
rural women owned
businesses.
16. Kiva Paid to Provide Energy to women owned businesses
& Train Artisans
17. Tips
Research Crowd funding Platforms and their terms
Be concise and transparent during the process
Business of high impact
Invest wisely
Have a good action plan upon full funding.
Sometimes Slow: Be patient.
But Self Promote as well…. Ferociuosly.
Be diligent with the project
Make timely repayments
19. an Enterprise that has…
Measurable impact
Product that solves a pain point
First mover or difficult to replicate
Customers willing to pay
Competitive advantage
Game changing innovation
Right team
Financials that scale
Plausible exit options
List provided by Lisa Kleissner of KL Felicitas Foundation