Crowdfunding

Overview

Crowdfunding is a fundamental component of regenerative village development. Community share offerings represent a proven model, particularly in the UK, where Community Benefit Societies issue withdrawable shares with typical 3-6% interest returns. Ethex has facilitated £120M+ raised for 200+ projects with 25,000+ investors, including the Findhorn community buyout which raised £1M+ through member investment.

Methods and Approaches

Community share offerings (UK model):

• Community Benefit Societies issue withdrawable shares
• Typical 3-6% interest returns
• Share value cannot increase (unlike equities)
• ISA-eligible status for tax-free returns
• Ethex platform has facilitated £120M+ raised for 200+ projects

Citizen energy cooperatives (Germany model):

• Bürgerenergiegenossenschaften demonstrate scale
• Hundreds of community energy co-ops operating through member shares and bank loan partnerships

Tokenized models:

• Traditional Dream Factory (Portugal) raised €384K through $TDF Token (280 token holders, €256/token)
• Provides accommodation rights + governance participation
• Legal structure: OASA Association (Switzerland)—only EU jurisdiction with DAO legal recognition

Small ticket investments:

• Some projects open crowdfunding rounds allowing investments as little as €100 alongside larger investors
• This democratizes access while building community support

Key Insights

Community share offerings work: The UK model has proven successful, with Ethex facilitating £120M+ raised. The Findhorn community buyout raised £1M+ through member investment, demonstrating the model's viability.

Small ticket investments democratize access: Opening crowdfunding rounds allowing investments as little as €100 alongside larger investors builds community support while raising capital. This approach was important for Traditional Dream Factory's model.

Platforms matter: Established platforms like Ethex (UK) provide infrastructure, legal frameworks, and investor networks. Germany's Bürgerenergiegenossenschaften show how cooperative models can scale.

Tokenized models offer innovation: Traditional Dream Factory's hybrid model combining tokenization (€384K raised) with private loans demonstrates innovative structures can work within European legal frameworks, particularly using Swiss OASA Association structure.

Returns expectations: Community share offerings typically offer 3-6% interest returns, which is competitive with other fixed-income investments while supporting mission-aligned projects.

Legal structure is critical: Tokenized models require careful legal structuring. Switzerland's OASA Association provides the only EU jurisdiction with DAO legal recognition, making it attractive for innovative funding models.

Examples and Case Studies

Findhorn Foundation (Scotland): Raised £1M+ through community share offering via Ethex platform, demonstrating the viability of community investment for ecovillage projects.

Traditional Dream Factory (Portugal): Raised €384K through $TDF Token (280 token holders, €256/token), providing accommodation rights and governance participation. Combined with private loans (€400K raised in 2024), the project demonstrates hybrid funding models.

Ethex platform (UK): Has facilitated £120M+ raised for 200+ projects with 25,000+ investors, showing the scale possible with community share offerings.

Bürgerenergiegenossenschaften (Germany): Hundreds of community energy cooperatives operating through member shares and bank loan partnerships, demonstrating how cooperative models can scale.

Implementation Guide

For UK projects:

• Consider Community Benefit Society structure
• Engage with Ethex or similar platforms for community share offerings
• Structure shares with 3-6% interest returns, ISA-eligible status
• Target €100K-€300K through community shares

For European projects:

• Research country-specific cooperative laws (Germany has strong cooperative frameworks)
• Consider tokenized models if using Swiss OASA Association structure
• Open small-ticket investment rounds (€100+) alongside larger investors
• Build community support before launching crowdfunding campaign

Best practices:

• Start building community and investor network well before campaign launch
• Provide clear returns structure (interest rates, terms, exit mechanisms)
• Ensure legal structure supports withdrawable shares or clear token rights
• Use established platforms when available (Ethex, etc.) for infrastructure and credibility