Goes hand in hand with new government requirements (in NYC, for example) to increase building efficiency! http://www.nyc.gov/html/gbee/html/home/home.shtml
exactly!
We're really excited to start launching projects in the NYC area.
Show HN: I quit my job to help communities fund energy efficiency upgrades
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Re: Show HN: I quit my job to help communities fund energy efficiency upgrades
#12What kind of legal arrangements are being used here? Does the person/company who borrows money legally owe this debt to the investors? And which government bodies regulate these transactions?
It's all regulated by the Securities and Exchange Commission. So we're actually selling securities of the debt owed to us by the borrower to the crowd investors. A lot of the work we've done over the past year is navigating the regulatory labyrinth required to offer securities to 'non-accredited' investors. (i.e. everyone who doesn't have a million bucks in the bank)
Wow, I'm impressed. Before you replied, I would have guessed you found a loophole to avoid SEC regulation.
I haven't read enough to judge how beneficial the particular loans you broker are, but I think that just showing that it's possible to crowdsource investment this way is a great achievement.
Re: Show HN: I quit my job to help communities fund energy efficiency upgrades
#13Do investors have to reside in the US? If so, please state this clearly on your sign-up page rather than ambiguously (by only allowing the input of US addresses).
Re: Show HN: I quit my job to help communities fund energy efficiency upgrades
#14Do investors have to reside in the US? If so, please state this clearly on your sign-up page rather than ambiguously (by only allowing the input of US addresses).
Unfortunately for now you do have to be a US resident due to SEC regulations.
I'll definitely add something to make that clear. Thanks for the suggestion!
Re: Show HN: I quit my job to help communities fund energy efficiency upgrades
#15Do investors have to reside in the US? If so, please state this clearly on your sign-up page rather than ambiguously (by only allowing the input of US addresses).
Seconded. It’s getting to the point where I just assume any website of this nature is US-only, since so few actually mention this clearly up-front.
Re: Show HN: I quit my job to help communities fund energy efficiency upgrades
#16Do investors have to reside in the US? If so, please state this clearly on your sign-up page rather than ambiguously (by only allowing the input of US addresses).
Unfortunately for now you do have to be a US resident due to SEC regulations. I'll definitely add something to make that clear. Thanks for the suggestion!
Great. This is a really cool idea and I hope you get enough traction in the US to eventually be able to move into other jurisdictions.
Re: Show HN: I quit my job to help communities fund energy efficiency upgrades
#17What are the kinds of projects you can invest in? How are you planning on getting competitive returns?
Re: Show HN: I quit my job to help communities fund energy efficiency upgrades
#18Whats the approximate return you expect investors to receive ?
Re: Show HN: I quit my job to help communities fund energy efficiency upgrades
#19What are the kinds of projects you can invest in? How are you planning on getting competitive returns?
Spark's upcoming beta platform will focus on energy efficiency and renewable energy projects, primarily building retrofits like LED upgrades, HVAC, boilers, water efficiency, building automation systems, heat pumps, etc. We're targeting projects in small businesses, community organizations like churches, charter schools and non-profits, and mid-scale commercial and industrial facilities.
Luckily, efficiency projects with three to five year paybacks are generating significant current year cashflow through avoided energy or resource costs, meaning Spark can offer solid returns and short tenor notes, lowering temporal risk to our investors. Specifically, we generate returns for our investors based on the revenue we receive from lease payments made by the project recipient.
Re: Show HN: I quit my job to help communities fund energy efficiency upgrades
#20Earlier quoted context omitted.
It's all regulated by the Securities and Exchange Commission. So we're actually selling securities of the debt owed to us by the borrower to the crowd investors. A lot of the work we've done over the past year is navigating the regulatory labyrinth required to offer securities to 'non-accredited' investors. (i.e. everyone who doesn't have a million bucks in the bank)
Wow, I'm impressed. Before you replied, I would have guessed you found a loophole to avoid SEC regulation. I haven't read enough to judge how beneficial the particular loans you broker are, but I think that just showing that it's possible to crowdsource investment this way is a great achievement.
We've worked really hard to make sure it's a significant benefit to everyone involved. Investors can expected yields between 4-10% with durations between 1-10 years. While borrows save money even in month 1. They only pay back a portion of the savings they earn from their reduced energy bill. In as little as 1 year they'll be keeping all the savings.