Newtree Impact Raised 2 Million Euros Through Crowdfunding

The first fundraising via the crowdfunding platforms Spreds and Ecco Nova carried out by Newtree Impact was a success. The impact holding company raised 2 million euros from 290 individual investors.

Last May, Newtree Impact announced an original fundraising

After seeking capital from investors, family offices, holding companies, and wealthy individuals, the impact holding company turned to individual investors. This was done via an original formula, “crowdlisting”, i.e. a crowdfunding operation, participatory financing, but allowing the issuance of new shares that can be listed on the stock exchange.

The operation was all the more original because for this occasion, two fairly complementary crowdfunding platforms, Ecco Nova and Spreds, had joined forces.

Nearly 300 investors participated in teh Newtree Impact fundraisaing

A month and a half later, here are the results: 2 million euros were raised from 290 investors. “We are all very happy,” said Charles-Albert de Radzitzky, CEO and co-founder of Spreds. “The shareholders of Newtree Impact were quite surprised, having just completed an institutional round of 5 million euros, that the company was able to raise 2 million euros from small savers. That’s really a lot because obviously small investors don’t put in the same amounts. The majority put in 2,900 euros,” he added (i.e. 1,000 shares at 2.9 euros).”

Benoît de Bruyn, CEO of Newtree Impact, is also delighted: “We are very happy with what happened. We are truly staying the course of making impact investing accessible to everyone. This is a great first experience that opens up the thinking to multiple possibilities and multiple paths,” he says.

A doubled free float

A result that was not easy to achieve. “At the beginning of the operation, the stock markets were not good. We were a little worried at that time.”

But by successfully raising these 2 million, Newtree Impact has achieved its objective of diversifying its sources of financing and doubling its “free float”, i.e. the number of shares that can be freely traded on the stock market (as opposed to blocks of shares held by institutions which are normally there to stay for a certain time).

Both platforms are also very pleased with their collaboration. “Our joint operation has shown that we can achieve much more together, for the benefit of both parties and responding to investor demand,” rejoices Pierre-Yves Pirlot, founder of Ecco Nova.

Other operations?

This crowdlisting operation could lead to others. “This initiative marks a significant step forward in the world of crowdfunding and investment. By promoting collaborations between platforms and using innovative strategies such as crowdlisting, the Newtree Impact operation has succeeded in creating a more efficient and inclusive financial ecosystem,” Ecco Nova and Spreds rejoiced in a press release.

“I think it can inspire vocations,” added Charles-Albert de Radzitzky. “We have been thinking for some time with Euronext to see how to solve the liquidity problem of small companies. Let’s be clear, there is no miracle solution for all companies. But I think that for a certain number of companies, crowdlisting can be a solution.”

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(Featured image Egor Lyfar via Unsplash)

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First published in Trends. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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