By supporting sustainable and social startups, DOEN Participaties, the DOEN Foundation’s social investment company, aims to make the world more sustainable and social. DOEN Participaties has become the largest impact investor for sustainable and social startups in the Netherlands with, currently, a financial stake in 67 companies. We interviewed colleague Mirjam Niessen, Impact Investing Principal at DOEN Participaties.
Making an impact is paramount at DOEN Participations. How do you do that?
DOEN Participaties invests directly with convertible loans or direct equity. With a convertible loan, we defer the moment we actually become shareholders. A convertible loan can be useful when the price of the shares (in fact the value of the startup) is still difficult to determine. Initial investments are between €50,000 and €500,000.
At what stage are you stepping in as an investment company?
DOEN Participations finances sustainable and social enterprises in the very first phase, when other financiers dare to step in because the risk is too high. DOEN Participations' investment often has a catalytic effect. When we show that we believe in a company and are the first to invest in it, we take a risk, but it also acts as a stamp of quality that wins over other financiers. An example is our investment in Fairphone: in 2017 we were one of the first external investors to step in. Fairphone has attracted a large group of investors since then.
When is a company interesting for you to invest in?
We invest in companies in the Netherlands, in Western Europe in the countries where the Postcode Lottery operates (UK, Germany, Sweden and Norway) and we have a small portfolio in East Africa. We invest in companies that prioritise sustainable and/or social impact and fit the transitions DOEN wants to accelerate. The company must have a strong and diverse team.
What makes DOEN Participations so unique?
As DOEN Participations, we are a patient investor who can stay on board with a company for a long time. We often see companies, if they are successful, grow to more employees, more revenue and more impact with DOEN Participations' investment. As long as a company contributes to achieving DOEN's objectives and as long as DOEN Participations has a role to play within the company, DOEN remains involved. This strategy differs greatly from other investment companies that generally stay involved for a maximum of five or six years.
How does DOEN Participations get the money to invest?
The DOEN Foundation, of which DOEN Participations is part, receives an annual contribution from the Postcode Loterij (Postcode Lottery) and the VriendenLoterij (Friends Lottery) that enables DOEN to invest. DOEN Participaties does not primarily aim for financial profit but for social return.
When we do make a profit, it is used to finance new entrepreneurs with their sustainable plans. This way, all income from sales, interest and dividends is reinvested. This is how DOEN Participations' impact on society grows.
How are you involved in your investments?
Besides financially supporting pioneers, we connect entrepreneurs and bring their initiatives to the attention of a large audience. We do this through our own media (website, socials, events and printed material such as annual reports) and we benefit from the wide reach of the media channels of the Postcode Loterij and VriendenLoterij. A relevant network and publicity with a large reach are powerful pillars for the growth of a business. And recently, we also have a job board where we make the vacancies at our partners visible. We hope to support them in attracting talent.
What is your golden tip for sustainable and social enterprises looking for investors?
Check out how to apply for funding from DOEN Participations at doen.nl. Take a look at our criteria, do the QuickScan and read the terms and conditions. Above all, look at the companies we already fund and whether your idea is the same or brings something new.
Do you think your plan has a chance of succeeding? Instead of an application, you can also send a so-called 'pitch deck' to: [email protected].
Your pitch deck shows who you are, how you will make money, how much money you need, what exactly you do and what problem your product or service solves (impact).
