Organic Farm Foods
Venture capital
In recent years strong, growing ethical companies have had limited options. They could choose to sell to bigger organisations, as the Body Shop and Green and Black’s have done or they could keep going independently. But, with finance and equity for small and medium sized ethical businesses hard to come by, this can limit the scale of their ambition. There’s a growing gap offering equity finance to companies in flourishing sectors like natural health care and organics. There has been a increased need for equity finance for companies in flourishing sectors such as natural health care and organics.
We have filled this gap by launching venture capital funds and investing equity in social and environmental enterprises across Europe. Since 2001, Triodos Bank has raised two venture capital funds totalling €75 million. The most recent, the Triodos Innovation Fund, is building a portfolio, which includes investments needing early-stage and expansion capital. The Fund is well positioned to tap Triodos Bank’s wide network of social and environmental enterprises. It considers investments from £250,000 to £2 million per company.
We use the following criteria for screening investments opportunities:
1. An experienced and well balanced team with a good track record
2. An idea that meets an unmet market demand
3. Targeting a market with strong growth potential
4. Sustainable competitive advantage
5. Ideally, near to break even on net profit basis
6. Desire to share ownership of the business with an investor that can bring more than just money
7. Potential exit routes identifiable at the time of investment
8. UK focus
We’ve invested venture capital in the following UK companies in 2007:
Marine Current Turbines
Pioneering tidal power in the UK, with the world’s first commercial tidal turbine system in Northern Ireland’s Strangford Lough. Our £1.8 million investment will help it pioneer tidal power in the UK. This has significant advantages in that power generated is predictable, environmentally friendly, less affected by bad weather than its wind farm equivalents, and aesthetically less controversial because most of the structure is below the water.
Historic Futures
Supports the development of fair trade and organic businesses by providing an online tracking system to back up their ethical claims, as well as encouraging mainstream brands to make their supply chains more transparent. Our £350,000 investment will help the company to grow beyond its current pilot stage, helping more retailers and brands to trace the journey their products go on before they reach the consumer.
The Triodos Opportunities Fund
The Triodos Opportunities Fund is a ground-breaking social enterprise equity fund, investing in high impact and commercially sustainable social enterprises and providing expertise to help them grow.
The Real Food Pub Company
The Real Food Pub Company aims to build up a group of country public houses in central and west England specialising in the provision of locally sourced, often organic, sustainable and seasonal food.
- Triodos Opportunities Fund
- A ground-breaking social enterprise equity fund, investing in high impact and commercially sustainable social enterprises and providing expertise to help them grow.
- The Real Food Pub Company
Triodos Bank sponsored the first round of EIS fundraising for the Real Pub Food company. This is now closed, but there will be other opportunites later this year.
- Triodos Renewables Share Issue exceeds fundraising target
- Triodos Renewables has announced that its recent share issue was oversubscribed, raising £10 million from both public and institutional investors. (16 July 2008)
- Groundbreaking social venture capital fund launched
- Triodos Bank has announced the launch of the Triodos Opportunities Fund, a ground-breaking venture capital fund for social enterprises. Triodos is now seeking to invest between £200,000 and £750,000 in social enterprises with a proven business model that are looking to grow and scale up their operations. (30 June 2008)