Growth capital in the sustainability sector
12 Aug 2020, 09:31

By Clemens Susen, Investment Associate, aream Group

 

Hydrogen is currently on everyone's lips because it is sustainable, versatile and is considered a lu-crative future market. The German government has announced its intention to promote research and use of hydrogen in Germany. But not only hydrogen is in vogue, investors have given many companies in the sustainability sector very high ratings: Tesla, for example, is the highest rated car manufacturer in the world and Nikola, which offers solutions in the field of hydrogen mobility, was traded on the NASDAQ after its stock market debut with a market capitalization of over 35 billion US dollars, although it did not have any turnover at that time.
 

Many investors therefore justifiably ask us the question: Is growth capital in the sustainability sec-tor a worthwhile investment or has a speculative bubble already formed?
 

Of course, this question cannot be answered in a generalized way. Each investment must be sub-ject to an individual examination with regard to valuation and corresponding expected return. But one thing is certain: without market experience and technological understanding, growth capital in the sustainability sector offers many pitfalls for investors. The aream Group has also been active in this sector for several years. For example, the company invested early in Artificial Intelligence to support the operating phase of renewable energy (RE) plants, a company that is developing fantas-tically. An investment in the early phase of an ICO ("Initial Coin Offering") to finance services in the field of renewable energy is also proceeding according to plan.
 

In addition, aream is working together with Capital Nature, an Israeli incubator, which manages a diversified portfolio and, like aream, has many years of experience in the field of sustainability. Investors can thus invest in growth capital in the sustainability sector and benefit from the transna-tional expertise of both partners in these areas.