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

Token-based crowdfunding:

• A community-driven funding model where projects raise capital by pre-selling access rights in the form of blockchain tokens
• Traditional Dream Factory (Portugal) raised €384K through $TDF Token (280 token holders, €256/token)
• Tokens provide accommodation rights and governance participation, allowing members to finance their own village development
• Early supporters take on more risk and buy at lower prices, while later buyers pay higher prices reflecting reduced risk
• Legal structure: OASA Association (Switzerland)—only EU jurisdiction with DAO legal recognition
• Democratizes access by allowing small-ticket investments alongside larger supporters

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.

Token-based crowdfunding offers innovation: Traditional Dream Factory's hybrid model combining token-based crowdfunding (€384K raised) with private loans demonstrates how community-driven funding can work within European legal frameworks, particularly using Swiss OASA Association structure. This approach enables communities to front-load capital by converting future use value into present funding.

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: Token-based crowdfunding requires careful legal structuring. Switzerland's OASA Association provides the only EU jurisdiction with DAO legal recognition, making it attractive for innovative community-driven 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 token-based crowdfunding (280 token holders, €256/token), providing accommodation rights and governance participation. Combined with private loans (€400K raised in 2024), the project demonstrates how community-driven funding can be combined with traditional financing in hybrid 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 token-based crowdfunding if using Swiss OASA Association structure
• Open small-ticket investment rounds (€100+) alongside larger investors to democratize access
• Build community support before launching crowdfunding campaign
• Structure tokens to provide clear access rights and governance participation

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