She's using her marketplace to fund $1m in ground heating systems in Finland and charging a SaaS Fee
Feb 6, 2024
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Tarja, Entrepreneur in the energy industry, is using a marketplace to connect housing projects in Finland with energy service providers. She aims to raise a $15m fund to back these projects. The podcast explores the business model, investment opportunities, and revenue generation of her company.
Action Energy Marketplace connects housing projects in Finland with energy providers to improve energy efficiency and invest in energy projects.
The platform aims to raise a special purpose vehicle of 10 to 15 million euros to fund larger projects and generate cash flow through service agreements.
Deep dives
Action Energy Marketplace: Connecting Housing Projects with Energy Providers
Action Energy Marketplace, launched recently, is a platform that connects housing projects in Finland with energy providers. The marketplace has attracted about a hundred housing companies and property managers as buyers, and a hundred energy providers. In just a few months, the platform has facilitated the completion of projects worth hundreds of thousands of dollars. Providers pay a flat monthly SaaS fee of 29 euros, generating about 3,000 euros in revenue per month. However, the platform's main focus is on raising a special purpose vehicle (SPV) of 10 to 15 million euros to fund larger projects. By signing contracts with housing units and providing the necessary financing, Action Energy Marketplace aims to profit from the cash flow generated by these projects.
Action Energy Marketplace: The ecosystem of Energy Projects
Action Energy Marketplace operates multiple marketplaces, including Action Energy Market Finland, Action Energy Finance 24, and Action Energy Market Global. The primary buyers on the platform are housing companies in Finland, looking to improve energy efficiency or invest in energy projects such as heating system upgrades or the installation of solar panels. Property managers, on behalf of the housing companies, can request offers from providers on the platform. The project values on the marketplace vary, ranging from small consulting projects to multi-million euro installations. The goal of the platform is to digitize project data and facilitate financing for these projects by raising money through SPVs and becoming project owners.
Action Energy Marketplace: Financing Energy Projects
Action Energy Marketplace aims to provide financing for energy projects by investing directly in them. Housing companies, via the marketplace, can find providers for their energy projects and submit financing requests. Action Energy Marketplace evaluates the projects and invests equity, often around 50%, to make the projects happen. The housing companies then enter into a service agreement with Action Energy Marketplace, committing to purchase the heat or energy generated by the project. By owning the energy projects and generating cash flow through service agreements, Action Energy Marketplace plans to attract debt financing to further support the projects. The cost of capital for the debt financing is yet to be determined, as the business is still in its early stages.
Tarja recognizes that energy in Finland is a hot space. She's launched a marketplace connecting 100 apartment complex owners with 100 providers of energy services like solar and heat. Shes raising a $15m fund to then back these projects that go through her marketplace. Will she get the $15m SPV closed and change the course of energy efficiency before 2025?
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