Green investment firm raises $2M

A Montreal-based online investment platform that gives loans to support green energy projects has raised some capital of its own.

CoPower has received $2 million in equity financing from a group of investors that includes the Royal Bank of Canada; Fondaction CSN, a labour-sponsored pension fund; and Ferst Capital Partners, a Montreal-based venture capital firm that invests in financial technology.

The investment is a sign that established investors are starting to buy into “the idea of climate wealth, the idea that the shift to a low-carbon economy is an enormous wealth creation opportunity,” said David Berliner, the CEO of CoPower. “Companies that are solving social and environmental problems can be some of the biggest growth opportunities in the coming decade.”

It’s also a vote of confidence in his company and a sign that newer, technology-enabled financial services companies — also known as fintechs — are finding opportunities to collaborate with established financial institutions, Berliner said.

The money will help the company hire and expand its offering, Berliner said.

CoPower gives loans to companies and other organizations that are investing in clean energy projects, particularly projects that involve infrastructure.

In May, it provided $1 million in financing to Marmott Énergies, a Town of Mount Royal-based company that aims to make geothermal power more accessible by spreading out the up-front costs.

CoPower finances loans like that by selling what it calls “Green Bonds.” The bonds pay three per cent on a three-year term or five per cent on a five-year term.

Berliner said CoPower was created to address three trends in the marketplace — clean energy projects couldn’t access financing, investors were looking for lower-risk green investments and technology was making it easier to sell financial products online.

“When we talk to professionals in the investment industry, they often tell us that their clients are looking for investments that have this impact or this green element, but there aren’t very many that have a low-risk, or an infrastructure component, or a yield component,” he said.

It’s not just about making money, though, Berliner said.

“We’re always looking for measurable clean energy and carbon metrics, and that’s part of what investors get in their periodic reporting,” he said. “People see both their financial statement as well as, on the same line, their impact statements — here is how much clean energy has been generated and carbon reduced.”