2023-05-25 15:15:42
The Berlin start-up wants to significantly reduce the bureaucracy involved in setting up foundations.
(Photo: Christian Customer)
Berlin According to the World Wealth Report, more than 1.6 million dollar millionaires live in Germany. The Fintech Project Bcause wants to encourage these, but preferably also all other Germans, to let a larger part of their assets benefit society – regardless of a possible return.
In the absence of meaningful opportunities, many wealthy people often only invest their money in real estate, says company co-founder Felix Oldenburg. He wants to create such alternatives: Digital foundations can be set up within minutes via the platform, even with small amounts.
With this non-profit idea, the start-up, founded in 2021, has already been able to convince entrepreneurs such as Nebenan.de founder Christian Vollmann to co-finance the young company. “Private assets continue to grow, the volume of donations in this country is stagnating. The scissors are widening,” Vollmann explains why he is there. Also present are Martina Merz, who is leaving Thyssen-Krupp as CEO at the end of the month, and the former Zalando co-boss Rubin Ritter.
Why is that important?
According to Felix Oldenburg, there is a gap in the “segment between the donation and your own large foundation”. Getting involved in this area, however, involves a lot of bureaucracy. Oldenburg speaks from experience, he was managing director of the Association of German Foundations for four years.
With Project Bcause, he wants to mobilize dormant private capital – without entry hurdles and without the expense of legal advice and foundation authorities.
An online foundation can be set up in five minutes, promises Ashoka, the longtime executive director of the non-profit organization that promotes social entrepreneurship.
The Federal Association of German Start-ups honored the project, which is unique in Germany, with a nomination for the German Startup Award this year.
How does Project Bcause work?
After registration, a custody account is opened in one of the non-profit trust foundations. “Our customers can invest in an existing foundation with us via their Bcause custody account and manage the money they have brought in with us,” says Oldenburg. Some of the curated organizations needed donations, others were financed by repayable loans.
It is also possible to finance impact funds, sustainable investment products such as Planet A. “We do not manage third-party assets. The money belongs to the respective foundations. Customers can’t earn anything from us,” Oldenburg makes clear. So far, the platform has been free to use, but customers can pay transaction fees on a voluntary basis.
Who is on board?
Project Bcause was able to win entrepreneur Christian Vollmann as the first investor. But it didn’t stop there. “I set up my own foundation for climate protection there,” says the founder of the Nebenan.de. Soon he wants to start another foundation with his wife and other comrades-in-arms with the aim of strengthening social cohesion and democracy. Vollmann then wants to use this to support organizations such as JoinPolitics, BrandNewBundestag and HateAid.
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Currently, around 500 users can finance more than 200 organizations. The doctor and moderator Eckart von Hirschhausen is also on the road with his own foundation on the platform, with which he supports, among other things, “Doctors Without Borders”. “All forces must be mobilized, ideas as well as capital,” says Hirschhausen, whose foundation currently has a volume of 27,320 euros.
There is currently a waiting list to join Project Bcause. Minimum amounts are not necessary. According to Oldenburg, the average transaction size is around 5,000 euros. Overall, users have already made several million euros available for good causes.
What’s next?
So far, Project Bcause has had no trouble attracting investors. “This may also have something to do with the fact that a huge wave of heirs is rolling towards us, which is directly affected by the consequences of climate change and other social problems,” says Oldenburg. The start-up has raised around four million euros since it was founded.
Oldenburg has big plans for its social entrepreneurship. It’s not about building a niche product for him: “Meanwhile, online stock portfolios are no longer just a form of investment for the rich, but for everyone.” The founder has a corresponding number of ideas for the future of his business: “There are many to boost sales – for example through custody fees or Bcause credit cards.”
More: You can find more start-up checks here
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