Ackerdemia

Case Study

Goals & Process

Non-profit social entrepreneur, registered association 

For scaling and establishing the GemüseAckerdemie in each federal state, Ackerdemia e.V. needs growth capital of 300.000 EUR. Previously, 140.000 EUR of own funds had been invested. 

Why did you choose this funding type?

The financing model supports the social mission.

Mezzanine financing with profit sharing and social impact incentive takes into account the special requirements of the business model at hand by giving the social entrepreneur the necessary leeway while still allowing investors to participate in the entrepreneurial success. The social impact incentive component promotes the company's purpose and accelerates the social impact.

The financing, which is structured as profit participation capital with a qualified subordination agreement, has a variable remuneration component in addition to a fixed, non-performance-related remuneration - the investor participates in the success of the company from both a financial and a social perspective. From break-even, the investor receives a share of the profits and, at the end of the term, a remuneration that is dependent on the achievement of a defined social impact target.

The profit sharing with social impact incentive leads to very flexible financing costs at the level of the social enterprise - especially in the start-up phase. This remuneration structure and the very flexible redemption options secure valuable liquidity for the company in the start-up phase. The social mission and the scaling of the business model are significantly supported by the selected financing instrument and the remuneration structure.

Successes & Challenges

Match funding

1. Companies as school sponsors

• Large, national companies from the sectors of agriculture,
  nutrition, health and sustainability
• Smaller, local companies with a high level of identification with a school

        Goal: authentic CSR management

2. Structural support from politics

• By state ministries for environment and agriculture (funding pots for
  applied education)
• By federal ministries BMEL, BMU and BMG

Goal: Convince through high and unique quality (lasting effect)

Ackerdemia eV is supported in its financing project by a foundation and five
business angels.

Takeaways & Additional Information

Ackerdemia is now called Acker.

Source: FASE Deutschland