Crowdfunding is an important source of funding for new enterprises where investments from companies and individuals from all over the world are pooled together. As an investment tool, crowdfunding is rising in popularity.
Crowdfunding for development and climate finance
Crowdfunding has been used for development finance for over 12 years now with a focus mainly on micro-finance for poverty reduction and extending to financing small and start-up businesses.
More recently, Climate change is now a project theme across most crowdfunding platforms, and there are several crowdfunding platforms that are now particularly dedicated to climate change solutions.
For example, Dalendo, a crowdfunding platform based in Luxembourg and the U.S.A. provides potential investors and shareholders with the means to explore investment opportunities in the realm of social and environmental change.
Dalendo and crowdfunding
Dalendo, a donation-based crowdfunding platform with roots in the USA and Luxembourg focus on helping entrepreneurs to develop their green projects to fight against global warming and make their business last thanks to the support of donors from every corner of the planet.
Historically, crowdfunding is mostly concentrated in Europe and the US. However, since climate change affects everyone, green crowdfunding has catapulted into the rest of the world – Indonesia, Australia, Japan, South Korea, India, Singapore, and New Zealand. Crowdfunding has also taken root in parts of Africa, with Zambia, Kenya, and South Africa. Although Dalendo is only based in the U.S and Luxembourg, its reach is throughout the whole world.
Dalendo crowdfunding as an enabler of climate finance
Using Dalendo crowdfunding in this case (as an enabler of climate finance) is quite beneficial as the platform has the probability to address major challenges in climate finance, notably helping project initiators acquire sufficient amounts of climate finance quickly enough to address the climate threat.
- Dalendo crowdfunding may give project initiators immediate access to funding, in turn speeding the flow of climate finance to match the urgency of the climate threat.
- Dalendo crowdfunding for climate finance also holds the potential of ‘democratizing’ the green movement by increasing awareness and encouraging public participation in the realm of sustainable investment.
- Dalendo Crowdfunding can help small-to-medium enterprises, such as smallholder farmers and micro-borrowers amongst the rural and urban poor in developing countries who are in tremendous need of climate finance to mitigate and adapt to the effects of climate change, by acquiring funding for them.
In essence, Dalendo is a participative financing platform for companies and entrepreneurs who want to boost the dynamics of the green economy and the achievement of the sustainable development goals defined by the United Nations.
If you are thinking about launching a crowdfunding campaign for your project, you can start now.