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Terra2Official151 karma

This is a good question and it shows that you know your stuff. That said, what we are providing, as you said, exists in other verticals but not in renewables.

Right now, I shouldn’t say any specific number until offering circulars are made available. That will have financial information that you need to model the asset before you make any investments. This document would be involved with the SEC qualification. But this will come later, and vary project by project. It’ll obviously have to be professionally audited and checked before we make a project’s financials public to you.


Terra2Official56 karma

Hi pperca,

So our CEO actually has worked on financial modeling for both gas pipelines and large solar projects so we do have some industry expertise on our team! Sorry for not clarifying that sooner.

Regarding your second point, we totally understand your concern and in general would want our investors and investors everywhere to be able to make good decisions with their investments. We also totally agree that the diversification offered by ETFs is very beneficial.

That said, there are a couple reasons we believe our company is a useful complement to what's out there on the market right now.

  1. I'm not sure which ETFs you are recommending specifically. However, the ETFs I've seen are mostly comprised of companies that are related to the solar space but aren't primarily involved in the business of financing solar farms. For example, Invesco Solar ETF is mostly comprised of solar techology companies (https://www.etf.com/TAN#overview). While these are definitely useful, they perform a very different role in the solar energy ecosystem than we're proposing. At the least, the money invested in these funds won't go in their entirety to financing solar farms.
  2. Ease of use: One of our goals is to make it extremely easy to invest in these types of products while also surfacing important details about the underlying assets in a clean and transparent way. While we may be less diversified than ETFs, we definitely aim to be more transparent and easy to use. If the average investor of a solar ETF like Invesco wanted more information on what they were invested in they would have to dig through the SEC filings of the individual companies comprising the ETF. One of our goals is to make understanding what your invested in as easy and transparent as possible.

Finally, we are by no means advising individuals to invest their life savings with us. Nowhere do we offer to make people a quick buck or guarantee the safety of their investment. Rather, we think that as a private market investment with an underlying revenue generating asset (where the revenue may be contracted or uncontracted depending on the investor's risk profile), users can diversify their portfolio by investing a small percentage with us. We also believe that there are few other investments you can make that would have as direct an impact on emissions reductions as us!

Finally, our offerings will be registered with the SEC and actually, the financial filings we need to do are one of our primary expected expenses!

Finally regarding your third point, realtime tracking of carbon emissions reduction and related realtime data is something that hasn't been done before or at least not made publicly available. It will require realtime tracking of the productivity of the underlying asset which is a difficult problem and also fantastic in terms of visibility to our end users. We agree that the specific carbon emissions reductions display doesn't have much to do with the financial health of our assets - this is a cool new feature we can offer that provides a transparency from a climate change impact perspective that people haven't seen before!

Terra2Official53 karma

Great question! A regular solar ETF let’s you invest in different solar companies. We let you directly invest into a solar project or solar farm itself. So, the asset you are investing into is fundamentally different.

Additionally, ETFs don’t let you pick. We give individual investment decisions to you so you can handpick which solar projects you want to invest into and build your own solar portfolio that way.

Lastly, we will be tracking your emissions reductions over time. You will be able to check it real-time on your phone, on the website, etc.

Hope that highlights the key differences! Please let us know if you have more questions!


Terra2Official16 karma

Thank you for following up!

Terra2Official15 karma

Hello! Please check out our updated post! Our website also has a link to our team if you want to check that we are real people. We will be providing responses to all of the questions.