In Fundeen you can invest in the different projects that are published in the platform through the acquisition of shares. This is called Equity Crowdfunding. 

Your investment in a project will provide you a number of shares in the company that owns and operates the facility. It is through the sale of the energy produced by the installation how positive cash flows are generated once all expenses are deducted. These positive cash flows can be used later to make a distribution of dividends and, these, are used to calculate the profitability of your investments.

The profitability calculation that we publish in Fundeen has the following characteristics:

  • The project's profitability is estimated by Fundeen's team of experts, which requires estimates or projections of income to be obtained based on the future price of energy. Other values such as inflation or project costs are also estimated.

  • We always speak of net profitability, measured as the annual average of the returns received or to be received. This means that we are discounting all types of expenses, commissions and taxes from the project. The only aspect that we do not consider when calculating profitability is the withholding (Personal Income Tax in the case of individuals and Corporate Income Tax in the case of companies) that is practised in a distribution of dividends according to the law. 

  • The profitability published is the Annual Equivalent Rate or APR, which corresponds to the Internal Rate of Return or annualised IRR.

Where:

  • f is the frequency of dividends collected and can have the following values: 1 (annual), 2 (half-yearly), 3 ( four-monthly), 4 (quarterly), 6 (bimonthly), 12 (monthly).

  • Ft are the payments made (initial investment) and received payments (before the withholding of PIT or CT to practice in the distribution of dividends) each year by the investor.

  • n is the number of years or period of the investment.

We use APR as a reference value for two reasons:

  • Provide a comparable value to other financial products, since the Bank of Spain requires this index to be included in all types of financial products since 1990 (standard 8/1990 on "Transparency of operations and protection of customers").

  • Consider the value of the quarterly dividends that we seek to offer in Fundeen for all projects. The APR homogenizes on an annual basis, in addition to the interest rate, another type of commission, so the result is more accurate.

Remember that you have a tool in the project finance pages that allows you to see the amount you are going to receive in the term of the project depending on how much you invest, where we also calculate the CO2 you are going to avoid investing in renewable energy projects.

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Investor Information before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

Did this answer your question?