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FAQ
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FAQs – Frequently Asked Questions

Why does Redavia GmbH offer Virtual Shares and not ordinary shares?2022-02-18T10:13:06+00:00

Issuing ordinary shares to a large number of crowd investors would require an administrative effort that would be inconvenient for crowd-investors and unreasonable for a medium-sized growth business like REDAVIA, such as notarized transactions and time-consuming approval processes. Virtual Shares give investors a convenient way to invest in a risk-return profile that closely follows that of regular shares, yet avoids the administrative burden of regular shares. This way, investors save time and REDAVIA can focus on growing the business.

What does the subordination of the Virtual Shares mean for me?2022-02-18T10:09:41+00:00

As subordinated investors, Virtual Shareholders bear higher risk than unsubordinated investors, such as senior lenders. This risk goes beyond the general risk of insolvency-related default: In the event of a cash shortage in the company, subordinated investors bear equity-like risk. This means: No payment claims of the investor can be enforced against REDAVIA if this would cause REDAVIA to open insolvency proceedings or if such cause for insolvency proceedings (for example: a cash shortage) already exists. The investor’s claims remain unenforceable for as long as and to the extent that the cash shortage of the issuer remains unresolved. If the company is liquidated, the subordination means that other creditors are repaid first and only then the subordinated “Virtual Share” investments.

What are the risks associated with the investment?2022-02-18T10:10:24+00:00

This investment funds the difference between revenues and expenses of REDAVIA and is associated with considerable risks and can lead to the complete loss of the assets invested. The promised return is not guaranteed and can also be lower. The company may not be able to pay-out the due investment amount plus earned returns because of subordination rules. Please visit invest-redavia.com/en/risks

What is crowdinvesting?2022-02-18T10:16:41+00:00

Crowdinvesting is a form of crowdfunding, whereby a large number of people come together to financially support a project, a company, or a product. In contrast to crowd-donations or reward-based crowdfunding, crowd-investors aim to obtain an attractive financial return on their investment, for example in the form of interest, a share of future profits, or a share of an increase in the shareholder value generated by the company’s growth.

How else can I support Redavia?2022-02-18T10:08:54+00:00

Your biggest support is to support our vision and mission, but you are very welcome to share this opportunity with your network and spread the word.

When do I get my investment back?2022-02-18T10:11:53+00:00

After a qualifying exit event, such as a sale or an initial public offering of all of the shares of the company, before 31st December, 2036, the virtual shareholders receive their share of the company value of Redavia GmbH. If there is no exit event by December 31st, 2036, the Virtual Shareholders can terminate their investment. In the event of termination, the virtual shareholder receives the higher of: 1) The invested amount, subject to the profits and losses of the company, plus a return per annum, and 2) the value of the virtual share based on any equity-valuation-setting events (such as a sale of new or existing shares in the company to a third party) before 31st December, 2036. In any case, as subordinated loans, all payouts to the Virtual Shares are subject to statutory insolvency limitations.

How do I benefit from my investment?2022-02-18T10:12:23+00:00

The Virtual Shares represent a virtual equity stake in REDAVIA, based on the investment amount and the pre-money valuation of REDAVIA. If the company pays out dividends during the term, the holders of Virtual Shares will receive this cash on a pro rata basis, just like ordinary shareholders. In the event of a qualified exit event, the holders of Virtual Shares receive their investment back plus their share of the increase in REDAVIA’s equity value. In other words, the financial return on a Virtual Share is comparable to that of a regular share. As with regular shares, the return on the investment in a virtual share depends on the company’s value development and can be a multiple of the paid-in investment in the event of positive business development (upside scenario). In the event of a downside scenario, the Virtual Shares also participate in the losses of the company. In the worst case scenario, the Virtual Share may become worthless, as is the case with regular shares.

How will REDAVIA use my investment (“use of funds”)?2022-02-18T10:15:07+00:00

Redavia will invest the funds raised in this campaign to grow its business to its medium-term target of 500 customers / 100MWp. Specifically, REDAVIA will use these funds to cover the difference between company revenues and operating costs of its teams in Ghana, Kenya, Luxembourg and Munich until the company breaks even. In particular this includes: Salary cost (40%), marketing and sales cost (20%), administrative costs (20%), other operating cost (15%), and liquidity reserve (5%). This use of funds is stipulated in the terms of the participation rights and in the asset information sheet (“VIB”).

What is the potential return on this investment in REDAVIA?2022-02-18T10:11:22+00:00

By investing in this campaign, you will participate in Redavia’s economic success. REDAVIA targets a 200% return on your investment by ‘25-’27 by reaching our growth targets and a successful exit event. In case the company achieves its growth targets – even with significant delays – but does not achieve an exit-event by December 31st, 2036, then a return per annum through an ordinary termination is still possible, depending on the profits and losses of the company and other shareprice- setting investment rounds. In downside scenarios – for example if the company remains structurally unprofitable – there is a risk of total loss of your investment.

Can I sell or transfer my virtual shares?2022-02-18T10:10:51+00:00

A transfer or sale of the virtual shares can take place at any time with the consent of REDAVIA. The crowd investor informs REDAVIA about his/her plan and introduces the new investor in writing. Typically, REDAVIA takes a closer look at the virtual share sale and checks the new investor’s background (so-called “know-your-customer” checks). REDAVIA is free to refuse consent to a requested transfer for any reason.

Why does REDAVIA require my investment?2022-02-18T10:16:11+00:00

REDAVIA GmbH (“REDAVIA”) provides solar power plants to businesses in West and East Africa and is committed to using solar energy as a key driver for sustainable development. REDAVIA’s medium-term target is to grow its customer base from about 40 customers today (~10MWp) to about 500 customers (~ 100MWp) within 5 years and generate CO2 savings of over 35,000 tons per year. To fund this growth, REDAVIA requires different kinds of capital: Long term debt, working capital debt and growth equity. This crowdfunding aims to raise the required growth equity from crowd investors.

What is impact investing?2022-02-18T10:17:04+00:00

Impact investing aims to achieve measurable improvements for society and the environment, while providing an attractive financial return to investors.

Does all crowdinvesting flow into REDAVIA growth?2022-02-18T10:20:17+00:00

REDAVIA implements this crowdinvesting campaign on its own platform with Concedus GmbH as an intermediary, Secupay AG as a payment processor/trustee and other IT partners. The total transaction costs of this financing amount to only 2.2% of the issue volume. Compared to crowd investing on international platforms such as Seedrs, this is much cheaper. In this way, we ensure that your invested amount flows into operations.

Who else has already invested in REDAVIA?2022-02-18T10:15:39+00:00

Since its founding, REDAVIA Group has attracted a large number of investors who together have already committed over € 40 million of capital to REDAVIA and its subsidiary companies. These investors include: REDAVIA’s Founder, REDAVIA’s management, over 10 business angels, 2 venture capital funds, 4 Development Finance Institutions (“DFIs”), 2 foundations, and thousands of crowd investors who have supported REDAVIA via third-party platforms such as Lendahand, Energise Africa, and TRINE.

What are Virtual Shares?2022-02-18T10:14:47+00:00

REDAVIA’s Virtual Shares are participation rights (Genussrecht) – a type of subordinated loan – from an investor to REDAVIA which provides the investor with certain rights to take part in the financial value created by the company. The Virtual Shares give the investor rights closely following the rights of the owners of ordinary shares in Redavia GmbH, and as such, are often referred to as “Virtual Shares”. Like ordinary shares, the “Virtual Shares” are in the equity of REDAVIA’s balance sheet and aim to generate a financial return for the investor from the growth of the company. Unlike regular shareholders, holders of Virtual Shares do not vote in shareholder meetings.

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