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Lendahand

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Lendahand is a world-leading for-profit crowdfunding platform for impact investing.

121%
 - 
Funded 18 May 2020
€1,000,048 target
€1,226,061 from 684 investors
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Business overview

Location Rotterdam, Netherlands
Social media
Website www.lendahand.com
Sectors Finance & Payments Digital Mixed B2B/B2C
Company number 55711766
Incorporation date 7 Apr 2012
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Investment summary

Type Equity
Valuation (pre-money) €17.5M
Equity offered 6.48%
Tax relief N/A
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Business highlights

  • €75M+ invested across 4 continents
  • 7,000+ European retail investors
  • 29 active companies in our portfolio
  • Crowdfunding Platform of the Year 2018 & 2019 in the Netherlands
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Key features

  • Secondary Market
  • Seedrs nominee min. €12.99 +
  • Idea
  • Key Information
  • Team
  • Updates
  • Investors 684
  • Discussion
  • Documents

Idea

Introduction

Lendahand is a for-profit company that is on a mission to eradicate poverty all over the world using crowdfunding. We give investors in Europe the chance to invest in people and businesses in emerging markets that don’t have access to the capital they desperately need.

By providing debt financing to SMEs and financial institutions that have strong track records and proven business models, we’re able to help their businesses succeed and grow. As a result, they’re able to create new jobs and improve their local economies.

These companies and institutions then repay our crowd with interest rates ranging from 3-7%. It’s a win-win for both parties in the truest sense. We’re helping fix the broken financial system in developing countries by providing a sustainable investment platform that our crowd of investors love.

Intended impact

Currently there is a $5.2 trillion funding gap between the mature economies of Europe and the U.S. and emerging markets. This currently results in poverty and inequality on a global scale.

Lendahand was founded to use impact investing as a way to help lift people out of poverty. By enabling small businesses and entrepreneurs to be the drivers of their local economies, we're creating a sustainable solution that goes beyond charitable giving.

Many entrepreneurs in emerging markets are left without options when it comes to growing their businesses, unless they want to deal with loan sharks or interest rates they'll never be able to repay.

Likewise, there are very few options for investors in Europe to make a visible impact across the world with their investments.

We're using our unique opportunity as a crowdfunding platform to connect European investors to those entrepreneurs with limited options, helping facilitate the movement of growth capital across continents with ease.

Substantial accomplishments to date

Platform accomplishments

2016: Granted a full license as a European investment platform from the Dutch Authority for Finacial Markets (AFM).

2016: Officially recognized as a B-CORP.

2017: Together with UK-based social crowdfunder Ethex, we launched Energise Africa, a UK-based crowdfunding platform that focuses on SMEs in the Renewable Energy sector in Africa.

2019: Established a joint venture called PlusPlus with Dutch NGOs Solidaridad and ICCO, of which Lendahand owns 40%. This venture focuses on MFIs in the agricultural sector.

2019: Surpassed 7,000 total investors across all platforms.

2019: Reached 1,000 investor reviews with a maintained rating of 9/10 stars.

2020: Reached EUR 75m raised across all platforms.

Awards and media

2015: Awarded Financial Product of the Year by the Dutch Financial Telegraaf.

2018 & 2019: Lendahand was named IEX's ‘Top Crowdfunding Platform of the Year’ in the Netherlands.

2018 & 2019: Named one of B-CORP's 'Best for the World' companies.

2019: Invited to appear at the World Economic Forum in Davos, Switzerland as a successful example of the bright future for impact investing.

Lendahand has been mentioned in the following press:

Monetisation strategy

Lendahand charges a "success fee" to the company raising funds for every successfully funded project on our platforms. There are no charges to investors.

The success fee depends on the risk level and maturity of the project. The higher the risk and the longer the maturity of the loan, the higher the success fee, up to a certain maximum amount in order to avoid negative incentives.

The average upfront fee is currently approximately 3.2% for Lendahand projects, and 5.5% for projects on Energise Africa.

In 2019 Lendahand successfully raised and invested EUR 19.3m in their clients, while EUR 7.5m came via Energise Africa.

Our revenues are a function of the total volumes in projects successfully funded on the platform (Q) and the success fees charged per project (P).

Besides fee income, Lendahand's platforms, including Energise Africa and PlusPlus, have received over EUR 3m in grants and subsidies, due to the alignment of key global initiatives with our mission. We expect to continue to make use of these type of funds.

Use of proceeds

We plan to increase Q while reducing P, making us a more competitive source of funding and allowing us to increase revenues.

We aim to raise Q by:
a. Expanding our investment portfolio: Adding to our investment team, introducing AI-based "Algo-lending" into our acquisition processes, expanding our "Co-financing" operations, introducing local currency and USD investments into our portoflio

b. Scaling up our investor growth: Adding to our web development team, expanding into the Nordics & Germany, including new brand awareness initiatives in the Netherlands & Germany

We plan to grow the base of existing investors from 7,000 to over 25,000 investors by 2025, all while maintaining healthy unit economics with an investor lifetime value that is at least 3x the cost of acquiring an investor.

Our focus will shift from focusing on profitability in the short term (currently possible in Q1 2021) instead to profitability in Q1 2023, with a much larger revenue and investor base.

Key Information

Company structure

Investors in this round are investing in and will become shareholders of Hands-On B.V.

The group structure is as follows:

• Hands-On B.V. (the investee company): operates a crowdfunding platform operating under the name Lendahand in the Netherlands. The platform provides financing to companies operating in emerging markets that provide working capital loans. This company holds the IP for the Lendahand platform.

• Lendahand Ethex Ltd is a crowdfunding platform based in the UK in which Hands-on B.V operates through a joint venture with Ethex Investment Club Ltd. Hands-on B.V and Ethex Investment Club Ltd each own 50% of this entity. This platform provides financing to companies that provide solar home energy access to people in Africa. As a shareholder, Hands-on B.V. provides the following contributions and services to Lendahand Ethex:
- IT and domain licenses and services
- MiFID and IP licenses
- Investment projects and pipeline management
- Back-office platform and software
- Digital marketing and social media support

• Agricrowd B.V is a new crowdfunding platform that Hands-on B.V is preparing to launch together with NGO shareholders: Stichting Solidaridad Nederland (Solidaridad Foundation), Fair and Sustainable Particiipation B.V (Truvalu) and Stichting Interkerkelijke Organisatie voor Ontwikkelingssamenweking (ICCO Foundation). This platform will provide finance to SME specifically in the agricultural sector. Hands-on B.V. will hold 40% of the shares in Agricrowd B.V.

As a shareholder, Hands-on B.V. will provide IT and legal licensing services to Agricrowd B.V. as well as operational and back-office support.

Stichting Interkerkelijke Organisatie voor Ontwikkelingssamenweking (ICCO Foundation) is also a minority shareholder in Hands-On BV.

• LAH foundation - Hands-on B.V. donates to the LAH Foundation, which operates the Lendahand Academy. The Lendahand Academy assists SMEs with business training, such as providing and financing training sessions on bookkeeping and marketing for the entrepreneurs that Hands-on B.V. finances. The foundation is mainly subsidized by charities such as the Triodos Foundation and ASN Foundation.

Outstanding debt

The company currently has an outstanding loan of €100,000 with an interest rate of 6% per anum to be repaid by 2021. None of the funds raised will be used to repay this loan.

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If you successfully purchase a share lot of this business, you will be granted access.

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If you successfully purchase a share lot of this business, you will be granted access.

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Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage has been approved as a financial promotion by Seedrs Limited ("Seedrs"), which is authorised and regulated by the Financial Conduct Authority. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Seedrs platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Seedrs platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

Seedrs does not make investment recommendations to you. No communications from Seedrs, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Seedrs does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Seedrs, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from €17,499,842

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

Pitch type

There are 5 types of investment pitch available on Seedrs.

  • Equity
  • Convertible
  • Fund
  • Cohort
  • Secondary

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

Learn more about pitch type on Seedrs

Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

Learn more about investing and pre-emption rights.

Seedrs nominee

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Seedrs nominee.

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Seedrs Nominee). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

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None of the information in constitutes part of the campaign and it has not been approved or reviewed by Seedrs.

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