Main outputs of 7th CrowdCamp Session 2: The role of crowdfunding in ethical and sustainable finance
On 16 June, our 7th CrowdCamp continued with Session 2. The session started with a presentation of disruptive models of cooperators in the social economy, presenting the platforms co-ops as an alternative to platforms like Amazon. The session continued with a discussion on the connections between different mechanisms of funding, applying it to the social economy context and explaining how to encourage people to invest in projects with impact.
Speakers agreed that the fintech industry has a big role when facing social and environmental challenges, with the necessary innovations and tools to make people’s life easier and facilitate the access to finance. When talking about how established ethical financing entities relate to crowdfunding, the panelists agreed on the importance of asking: ‘why this organisation?’ when it comes to alliances between crowdfunding platforms and other ethical financing entities.
The discussion also focused on the increase of impact-oriented projects in platforms, and how platforms become more sustainable as they grow. Indeed, some of them are already choosing projects considering both aspects, the economic and the social impact.
Speakers talked about crowdfunding in the future of sustainable finance, showing why platforms care about sustainability and impact. They stated that people care about making an impact with every decision, and money can be a powerful tool to change the world through sustainable investments.
The panel emphasised the frameworks used by the platforms to assess the onboarding process of companies and how sustainable they are. Some of the platforms use different frameworks for each sector based on two main parts: qualifying the impact, meaning to which extent the service or product is providing a solution to a problem. And making the right measurement of this data. In other cases, the platforms have a consolidated model to take social development goals as the main sustainable targets, and others use their own KPIs framework to measure the aggregate performance of their projects. To finish the session, speakers concluded that raising awareness and bringing people together is the impact of crowdfunding.