Green Economy - Discover how the FirmFunding platform allows to finance the development of projects in sustainable agriculture.
Examples of equity financing of farms within the framework of sustainable agriculture projects
FirmFunding is a digital marketplace that allows SME advisors to find a suitable financing solution from professional investors. The financing files that can be put online and consulted by investors concern all types of projects, development, transmission, asset financing, disposals, for amounts ranging from 1 to 20 million euros.
Several sustainable agriculture projects have been put online on the FirmFunding platform, which has enabled innovative farmers with projects for the development of sustainable agriculture, respecting the best environmental standards, to be put in touch with professional investors willing to invest in projects with an impact.
All projects are likely to be put online on the FirmFunding platform and to find investors able to finance them.
The proof is in the projects put online on the platform in recent months in the sustainable agriculture sector, some of which have already been funded.
A farmer located in the Meuse (Grand Est region), was able to finance a methanization project on his farm. 3 million, the financing requirement was structured partly in equity (shares), partly in banking, and, for a total amount of more than
Focus -> Methanization, a win/win strategy, generating income for the operator and beneficial for the environment
Methanization is the use of a natural biological process that transforms organic matter to produce both renewable energy and a residue that can be used as soil and crop fertilizer. The biogas thus released can produce heat, electricity or be purified into biomethane for use in the gas network or as a transportation fuel. The farmer enters into an agreement with a partner who takes care of the gas purification and compression.
This type of project provides the operator with a recurring source of additional income through the resale of the energy produced and the recycling of all the waste from its crops, while benefiting from organic matter to enrich the soil.
- Growth through buyouts of other operations
The professional investors with whom FirmFunding allows you to enter into a relationship are likely to finance growth projects through the takeover of other farms.
One of the bearers of these projects put online, producer and trader of potatoes, located in the Marne (Grand Est region), met high standards in terms of environmental respect, biodiversity and agroecology, while using the most advanced technologies (« farm of the future » label). The project to acquire two other farms, also located in the Marne, for a total amount of more than 5 million euros, partly structured in banking, convertible bonds and equity (shares), was financed for 2 million euros in dry bonds with a professional investor registered on the platform (management company).
- Agro-ecological transition
External growth, by taking over other farms, can also be an opportunity to diversify into organic farming, which, in addition to being high value-added production, allows the project to be considered as meeting the criteria for impact investment : this type of project is ultimately likely to promote France's food sovereignty, by improving the resilience of farms and accompanying their ecological transition.
FirmFunding is proud to allow farmers to finance their transformation and expansion in a sustainable agriculture logic, which ensures them better incomes while respecting the planet. They can count on the capacity of professional investors to finance this type of project and on their interest in allowing the development of a reasoned agriculture, within the framework of a CSR approach.
Farmers who found financing through FirmFunding were able to count on the support and expertise of Gérald Evin and Xavier Gibut, specialists in the agricultural field, from the Labeliance Group:
« Putting our clients' projects online on the FirmFunding platform gave immediate visibility to our clients' projects among registered professional investors and allowed us to be quickly put in touch with quality professional investors who are aware of the stakes and specificities of our business. The FirmFunding team's insight into the expectations of investors was very useful to us. Thus, we were able to offer our clients a financing solution adapted to their needs, within a timeframe that allowed for the successful completion of their project. » - Gérald Evin and Xavier Gibut