factornerd

Abundance Investment – an impact investment platform

If saving the planet is part of your priorities, Abundance Investment helps you do this while also turning in a nice profit.

Published:  Tuesday, 29 December 2020
Author:  Daniel
Launched:
2012
Headquarters:
UK
Investors:
6000 (as of January 2020)
Investors from:
UK
Investments Funded:
101 million GBP (as of January 2020)
Investment Types:
Green Energy, Social Housing, Municipal Bonds
Investment Countries:
UK
Investment Terms:
2 to 20 years
Interest rates:
5% – 12%
Minimum Investment:
50 GBP
Currencies:
GBP
Early Exit:
secondary market

Abundance Investment is a UK based investment platform that opened in 2012. It offers green investments, mainly renewable projects in the UK, that contribute to a better world. So far, they managed to fund 40 projects worth 100 million GBP.

The platform lets investors buy debentures (unsecured bonds) and receive shares of the profits from the sale of green energy along with repayment of their initial investment. Currently, there are around 6000 investors on the platform.

Most of the investments are long-term, 15 to 20 years, although in recent years some short-term loan projects (2-3 years) were added as well. Most likely these will be refinanced at some point with long-term debentures.

Opening an account

Only UK residents can register with Abundance Investment after December 2020. The process is simple and it takes less than 5 minutes. You can deposit money either by debit card or bank transfer.

Investing options

Up until 2020, all the projects were green energy-related. Now Abundance started to add also social housing projects and municipal bonds, in which I’m happy to invest. On the details page, more information about the project is presented, along with a payment plan, financial statements, and detailed risks.

Abundance investments open projects

The marketplace (the secondary market)

You can buy investments from other investors. Or, if for any reason you wish to free up your capital, you can also sell your investments here. The offers from different investors are grouped by project, and you can select the offer that suits you best (cheapest).

Abundance investments marketplace

The user dashboard

Abundance investments user dashboard

I like the website’s user dashboard. It’s clean and contains detailed information about current investments, a payment calendar, and the latest news related to your investments.

Summary of Abundance Investments

I like the idea of ethical investing and supporting companies that promote a greener economy. For this, I’m willing to ignore some of the platform’s shortcomings.

On the one hand, there are lots of good things happening on the platform.

The website is very nicely designed and it’s fast. You can see someone put a lot of love into designing it.

The projects available are all the needed info to decide if you want to invest in them or not. Each project has an offer document describing the use of funds, the business plan, potential risks, market conditions, all spread usually across a 50 pages document. Compared to most of the p2p lending platforms I’m invested in, the documentation available on Abundance is very refreshing.

On the other hand, there are also things that don’t really work here.

The projects get funded very slow. While the ethical investment trend is on the rise, there’s still not enough momentum to fund fast enough the projects available. In their defense, some of the projects like the Atlantis Future Energy tidal power plant are looking for 7 million GBP in funding, so that takes a while to fund.

The risks involved are also high for the expected returns, especially if you’re not a UK resident and you don’t benefit from any tax advantages by investing in these projects.

These being said, I think Abundance is doing a great job and while I’m not investing a big part of my funds here, I always keep an eye on new projects available and invest a small token in them. As a small sign of appreciation for what they’re doing for the planet.

Want to know more?

If you found Abundance Investments interesting, visit their website and learn more about them.

Visit Abundance

A Viventor review after 2 years

Viventor is a Latvian marketplace lender offering highly attractive returns to its p2p investors. Since I started investing, my annual return has been around 13%

Read More

A starter guide to Investly and invoice financing

Investly is one of the few European p2p lending platforms that deal only with invoice financing. While it’s not a new platform, being launched in 2015, I’ve only recently started investing in it.

Read More

A short review on Crowdestor after 2 years

Do you want to invest in real estate, energy, transport, and startup projects from as little as 50 EUR with 15% annual return rates? Crowdestor is the answer. This little real estate crowdfunding platform based in Estonia publishes on its website secured loans with interest rates that vary from 12% to 36%.

Read More