Author: Mathias

IOspect

IOspect.

A SaaS company that develops industry-specific apps that simplify time-consuming manual processes and ensure that internal auditing and reporting become easier and more accurate.

IOspect’s main product is the DomuSpect app, which helps private landlords and property managers make the move view digital. All documents, pictures, and notes are gathered in one place, clear, documented, and paperless.

Problem

In Denmark, there are legal requirements for both occupancy and eviction reports for landlords. There are many manual workflows associated with preparing these reports, and it is therefore cumbersome and time-consuming. Notes, pictures, floor plans, and various other documents are usually included, and it can be challenging to get a general overview. Therefore, it often affects the quality of the reports, and the landlord and tenant spend a very long time on this manual process. In the event of error or doubt, a dispute may arise regarding the agreement’s possible deficiencies or precise content. Since it is done manually, there is also a large consumption of paper, which is not in line with the general desire to save resources.

Solution

IOspect has developed the DomuSpect app, targeted at real estate agents and landlords for digital relocation. The app is used in connection with moving in and moving out, where a statutory moving inspection must be performed. It guides the landlord through an easy and logical checklist with the option to insert pictures, notes, floor plans, and documents, so everything is gathered in one place and can be signed directly on iOS and Android devices. The DomuSpect app helps increase the quality of the report. There are fewer errors and omissions, and both time and money can be saved on the work process. All you need is a tablet / iPad or a smartphone with the app installed. It is simple to use, and based on a subscription scheme.

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Sustainable investments – good for the climate and you.

Sustainable investments – good for the climate and you.

At MEGATREND INVEST sustainability is essential in all of our investments. We only make sustainable investments, and there are several reasons for this. For example, a sustainable index from MSCI (Select Reduced Fossil Fuels) has had a 30% better return since 2012 compared to the corresponding non-sustainable index. Also, sustainable investments support a better climate and a better future for all of us. You thus help both the environment and your investment portfolio.

Heyfunding have talked to Steen and Mathias from MEGA about problems, startups, investors, etc. in the context of sustainable investment. Below you will find an excerpt from the interview.

The problem with sustainable investments.

“The problem when you start talking about sustainable investment is the question – what is sustainability? It differs from person to person and culture to culture. The term is often used and sometimes misused. A funny example, an acquaintance once saw at a trade fair in Asia, was a company that had produced a mug in clay, which they advertised as sustainable. When asked why it was sustainable, they replied, “yes, it’s because you can wash it up and use it again”, says Steen.

“For us, sustainability is about making a positive impression on the climate, the environment, the globe, people, etc., and that is what we at MEGATREND INVEST mean when we talk about sustainability. Our investments must support the future – in other words: We invest in the companies we do not want the future to miss.”

“But sustainability can be challenging to measure, precisely because the perception of the concept varies. For example. How do you report that we save so much CO2 and compare it to another company that saves so many children? It’s hard to line up the two.

Let me give you a quick example:

  • Sustainable business 1 produces food from insects. They save water because less water is used for 1 kg of protein from insects than for 1 kg of protein from animals.
  • Sustainable company 2 is a medical company. Among other things, they save patients because their product can better cure diseases.

Both companies have been put in the same category – namely “sustainable companies”, but how the hell can we compare and measure them the same? “

How do we solve this?

“So there is a gap in the market for how we measure sustainability. We can easily dive into each case and find some numbers that show that they make a difference on different parameters. Still, as soon as we compare several different sustainable companies and put an amount on their value, we are challenged. Especially because the number of cases we can compare with each other is still relatively low.

Because it is difficult to compare sustainability across different cases, we ensure that sustainability is in focus through other means. At MEGATREND INVEST, we demand companies themselves have relevant KPIs within sustainability. They must have thought of a sustainable life cycle and a sustainable design in their business and products and show relevant KPIs based on this. “

3D Flipbook Test

4 tips to get the most out of your alternative investment

4 tips to get the most out of your alternative investment

By Ulrik Falkenstrøm, COO & Vicepresident
MEGATREND INVEST

 

Risikoprofil i alternative investeringer

Hvordan er din risikoprofil? Foretrækker du en lav risiko, som medfører et begrænset eller lavt afkast, eller er du risikovillig og går efter et højt afkast? Det er typisk det valg du skal træffe, når du står med muligheden for at investere i enten traditionel eller alternativ investering. Det er der ingen tvivl om, men ikke desto mindre er det måske nok en anelse mere nuanceret.

Alle vil naturligvis gerne have det højst mulige afkast, og det er der gode muligheder for, når man vælger alternative investeringer. Samtidig skal man dog være opmærksom på, at det aldrig bliver risikofrit. Men der er mulighed for at minimere risikoen ved at træffe de rette valg og sikre en spredning af både den samlede investeringsportefølje og den del, der eventuelt afsættes til alternativ investering. Her er 4 gode råd i forbindelse med alternativ investering:

1. Valg af investeringer

Vurdér eksisterende trends og vær kritisk og selektiv i dit valg. Nogle teknologier og områder vækster lige nu. Bioteknologi, sundhed og eksempelvis også et område som kunstig intelligens er oplagte. Hold også øje med nystartede virksomheder indenfor disse områder. Uanset hvilket område, du foretrækker, har det bæredygtige også høj fokus, og alt tyder på, at dette område får endnu større præference fremover. Ja, det er næsten umuligt at forestille sig, at det ikke gør, for en stor del af den yngre generation tager ansvarlighed og bæredygtighed som en selvfølge, og det vil selvfølgelig påvirke efterspørgslen.

2. Spredning af din investeringskapital

Et potentielt højt afkast af alternative investeringer kan være fristende. Men det mest fornuftige er at sikre en fordeling af investeringsmidlerne på traditionelle og alternative investeringer. Et godt råd er, at ca.10% placeres på alternative (unoterede aktier) og resten på det traditionelle område (obligationer og noterede aktier). Du kan læse mere om porteføljespredning i artiklen af Søren Rytoft fra MEGATREND INVEST.

3. Spredning af din risiko ved alternativ investering

Det gælder som med alt andet, at lægger du alle æg i én kurv, er risikoen for tab også større. I forbindelse med din alternative investeringsdel er det derfor vigtigt at få spredt dine investeringer ikke bare på de rette virksomheder, men også på flere forskellige. Det reducerer risikoen yderligere.

4. Professionel rådgivning

Uanset hvilken porteføljefordeling du vælger, er professionel rådgivning af stor betydning. Her er det vigtigt at læne sig op ad rådgivere med en stor viden, og rådgivningen skal derudover også være baseret på stor og solid praktisk erfaring.

I MEGATREND INVEST investerer vi i de allerbedste kapitalsøgende danske iværksætter- og vækstvirksomheder. Vi investerer kun i ansvarlige og bæredygtige virksomheder inden for 9 udvalgte megatrends i verden. En investering i iværksættervirksomheder er forbundet med en risiko, men ved at sprede risikoen på mange nøje udvalgte investeringscases, reduceres risikoen markant.

Det ser vi som den bedste strategi med hensyn til at fremtidssikre og få det optimale ud af en alternativ investering.

05.08.2020

What challenges do most start-ups aim to solve?

What challenges do startups aim to solve?

Society as a driver for change.

The issues that take up society’s interest most is naturally often depicted in startups. Fortunately, we’ve seen an increased interest in alternative investment, specifically sustainable investment, in recent times. The focus on SDG’s is a clear sign of this. At MEGATREND INVEST, we hope this trend will develop into investment in startups as well. This could give people even more influence to shape the (hopefully sustainable) future they want.

Rainmaking.io has made an excellent overview of which SDG’s startups focus on. They have mapped over 2000 startups from across the world in an interactive compass. All the companies address challenges in at least one sustainable development goal (SDG) and are represented as a dot on the compass. The compass offers a unique insight into which challenges and SDG’s the startups choose to solve, in an easily viewable way.

Climate change is a clear inspiration for startups.

SDG 7 – Affordable and clean energy – has the highest number of startups with 26% or 562 startups. It’s clear that this issue has a societal will to be solved. Climate change and renewable energy have gotten a renewed focus over the last years, and this is clearly reflected in the number of startups that focus on SDG7. This is further underlined by SDG13 (Climate Action), taking first place in the highest average funding per startup (£90,55M). As sustainability is one of our nine megatrends, we are happy to see work being put into making better, cleaner, and more affordable energy sources. It’s essential for all of our futures.
The most active startup region is the Nordics, with 719 startups, and we think that’s great!

Investment in startups with a sustainable focus.

MEGATREND INVEST makes it accessible to invest in startups. Through our focus on nine megatrends, we offer an alternative and sustainable investment. There is no need to become your own angel investor when you can let us do the hard work.

View the SDG compass here.

New report from the Council for Return Expectations

New report from the Council for Return Expectations.

Overview of asset classes – incl. Alternative investments.

The Council for Return Expectations has just published a new report, in which they make some suggestions for future returns across asset classes. The report is used by pension companies and banks to compile investment forecasts and is a good starting point for an overview of recommendations and opportunities right now. The Council sets societal expectations for returns in available asset classes over the next ten years and is a useful tool for investors.

The report is particularly interesting because it compares the different asset classes available on the Danish market. The report is published twice a year and indicates an average of 4 different international expectations for the global financial markets. Based on the recent report, the expectations are as follows:

Expected annual returns in 1-5 years and 1-10 years term:

Source: Council for Return Expectations June 2020

Spread of the investment portfolio

When composing your portfolio, it is always important to spread your risk across several of the above asset classes. The very low-interest rates and the consequent low return expectations should be carefully considered before deciding what to invest in.

Equities have shown great momentum and have returned after the Covid-19 dive into the markets, and now it is at record levels. The skyrocketing in equities is now probably due to a lack of alternatives due to the low-interest rate level. Therefore, the high level of equities must be followed closely because the effects of corona can still have a significant impact on future financial results.

Asset classes with higher risks such as EM shares and private equity should be included in a diversified portfolio. It is up to the individual investor’s risk appetite to determine how much they can invest in these asset classes.

What will be the optimal investment?

I have in a previous post written about allocation to different asset classes. LINK. At the time, I concluded that a distribution in the traditional asset classes for both equities and bonds should make up 70-80% of one’s portfolio.

That said, it is also my position and recommendation that both real estate and private equity (unlisted stocks or alternative investments) should be included. Properties have a very small correlation to other of the mentioned asset classes and are a long-term investment. Private equity has a potentially high return without being notably correlated with other equity products. The chosen distribution will, of course, also be affected by age, where you are in terms of investable funds, and how high a risk you want to take.

MEGATREND INVEST is a venture company that invests in sustainable companies within specific megatrends. Our starting point is alternative investments in the form of unlisted shares with a view of investing in startups, where potential companies are carefully selected based on thorough due diligence. We believe that the companies we invest in will perform better than average based on active co-ownership. Our business is targeted at sustainable investments within specific megatrends with a future perspective. Investing in unlisted shares in sustainable entrepreneurial companies is the same as investing in the ideas that will ensure the development of our planet for many years to come.

Read the rapport from the Council for Return Expectations here.

WHAT IS A SHARE?

What is a share?

Knowing where different shares types differ is essential to create a robust portfolio with diverse investments.

What is a share?

Owning stock is the same as owning a share of a company. Thus, when you buy a share, you become the co-owner of the company in question. The ownership entitles a part of the company’s share capital and, as a rule, gives voting rights at the company’s general meeting. A stock can be listed; that is, it is registered that you bought this particular stock, and it gives you access to accounting and other information from that company.

Some companies have divided their shares into several classes of shares, typically Class A- and Class B-shares. A shares often have a higher number of votes than B-shares, and in contrast, B-shares may have a higher dividend than A-shares.

How to buy Unlisted shares.

An unlisted company is not traded on a stock exchange, which is why the marketability is significantly lower than on the stock exchange. Therefore, the buyer has to find a seller to buy the share and vice versa when selling.

The price of an unlisted share is often an expression of the company’s intrinsic value divided by the number of shares with a deduction or surcharge depending on whether it is a purchase or sale. As there is no market price to evaluate the company’s value, the intrinsic value of the company is often what the share price is based on. This is usually calculated only once a year in connection with the closing of the annual accounts. The price can also be set based on expectations of the company’s future earnings and the limited possibility of marketability of the share. This method can give a value that differs markedly from the intrinsic value.

Return on shares.

The return on shares consists partly of stock dividends from the company and partly of changes in price over time. Dividend is an expression of how much of the company’s profits are paid to shareholders. The size of the dividend is decided at the company’s general meeting. The change in price is an indication that the value of the stock fluctuates over time.

what is the risk.

The determination of an unlisted share’s trading price can fluctuate significantly in relation to net asset value, depending on how earnings expectations in the company in question develop. These expectations are affected by the general economic situation and the development of the market in which the company is located. In the worst case – if the company goes bankrupt – the investor can lose the entire amount invested. Risk can be divided into company, market, and currency risks.

Company risk is the risk associated with the individual company and can, for example, be earnings difficulties, dependency on particular customers, key people, or other challenges.

Market risk is a risk common to all companies or groups of companies engaged in the same area. These are external events or changes that affect all companies within individual industries or in a single country. For example, it can be cyclical movements, interest rate developments, or political factors that change the market situation in a particular industry.

Exchange rate risk is the risk of fluctuations in the exchange rate of shares traded in another currency. Consequently, the exchange rate risk is not present for unlisted shares traded in Danish kroner.

Pension savings in unlisted shares.

When investing pension funds, be aware that special rules apply to how you invest your savings. There is the following ceiling on how much you can invest in unlisted shares:

  • 20% of pension assets under DKK 2 million saved in the same bank
  • 50% of pension assets between DKK 2-4 million saved in the same bank
  • 75% of pension assets over DKK 4 million saved in the same bank. Also, the individual investment must be at least DKK 100,000, and the investor must not own 25% or more of the capital of an unlisted company.

Contact us for further advice on this.

Tax considerations.

The tax treatment of return on equity investments differs depending on the type of funds you use for investment. There is a difference in the taxation of return on shares, which comes from investing in free funds, pension savings, child savings, or corporate assets, respectively. Shares are not suitable for investing funds in the corporate scheme. The tax treatment may vary and change depending on your tax circumstances or as a result of changing tax rules. We recommend contacting an adviser about the tax consequences of an investment.

Wholi Is Now Hey Planet

Wholi is now Hey Planet.

Love can be a fickle thing. Our partners at Wholi fell in love with their name, but as they said themselves, others loved it first. That’s why they changed their name to Hey Planet.

New name, same mission

Hey Planet’s mission has been clear from the start. Create a sustainable food system that reduces the toll on the planet. Conventional farming, global warming, and increasing populations don’t mix too well. Hey Planet brings a solution to the table without turning the world upside down.

Health & Food is one of the nine megatrends that we focus on in MEGATREND INVEST, and Hey Planet is a stellar example in this category.

Take a look at their new website and follow along for great deals, as they rid old inventory and bring forth new and even better products.

The Hey Planet website.

AN introduction to
Hey Planet.

Sustainable food of the future

Sustainable food of the future.

Much of the protein we consume comes from meat, fish and poultry, but there is a far more sustainable alternative – insects.

A sustainable alternative

Insects not only have many nutritional benefits. They also have a climate effect similar to that of plants. According to FAO the cost conversion rate for crickets is very high, which means that for the same amount of protein 12 times less feed is needed than for cattle. In addition, there is a much smaller need for water, because around 20,000 liters of water is needed to produce 1 kg of beef, but only 1 liter is needed to produce 1 kg of crickets – and they require very little space.

Superfood

Edible insects are a superfood and an excellent source of quality protein – up to 80%. They also contain a variety of vitamins and minerals such as iron, vitamin B12, zinc and magnesium, which can be difficult to cover through a vegetarian diet. The UN has designated it as the food of the future, and the insect food market is also expected to increase significantly in the coming years.

In our part of the world, many of us have only experienced it indirectly and probably completely without knowing it. There are astonishingly many insects in orange juice, ketchup and coffee, and certain dyes are also based on special insects.

However, eating insects is by no means new. Up to 2 billion people around the world eat insects every day and it is so common that it includes 1900 insect species eaten by 80% of the world’s nations. In many cultures it is seen as a delicacy, and back in time cicadas used to be a bit of a luxury snack. The company Wholi Foods has already introduced insects as snacks here in Denmark.

Burgers based on insects

Wholi Foods` mission is precisely to integrate insects into food because they are both nutritious and sustainable to produce. In addition to initially being a variety of insect snacks, protein bars and crispbreads, they have now also started manufacturing a product based on insect flour that can be used as a meat alternative.

MEGATREND INVEST, which has been financing the start-up of Wholi, recently went into the kitchen and tried out the new meat product Manna to make traditional burgers. Everyone agreed that it was a really good alternative to the well-known beef.

Want to try it, you can read more at www.wholifoods.com

SolarSack Won!

Solarsack, winner of Danish Design Award 2020.

A brilliantly simple design

SolarSack just won a Danish Design Award 2020 in the category Save Ressources! A big congratulation goes out to you! It is truly deserved and well done!

If you haven’t read why SolarSack won, you can understand why here.

SolarSack is not the only great company that won an award this year. A big congratulations go out to the other winners as well. Danish Design Awards gave awards to companies and projects such as Too Good To Go, Ørsted (360 VR Space Safari), Lego Education Spike Prime, E-ferry, and more.

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