Liquid Wind: A tale of sustainable investments and remarkable returns

In just under three years, investors in LiquidWind, the dynamic cleantech startup, are about to witness the fruits of their investments.

In early 2023, LiquidWind found itself at a pivotal moment when HyCap, a UK-based private equity fund and existing shareholder, extended an enticing offer to acquire all shares in LiquidWind CommunityTWO AB (LWC), leading to LiquidWind winding up its operations and distributing funds to shareholders. The proposal, aimed at advancing sustainable initiatives, garnered significant attention and anticipation among shareholders.

By June 2023, a resounding majority of over 50% of shareholders, gave their stamp of approval to proceed with the offer. This decision not only signified the company's strategic shift but also marked a significant milestone in its journey. On July 31, 2023, the culmination of these efforts was realized as the purchase of shares was executed, resulting in total proceeds estimated at €688,000 or 8 Euros per share.

On top of that, a few years back, the company implemented a 1:100 share split. Picture this: If you initially bought just one share through FrontFundr at $270 CAD, that single investment has now blossomed into 100 shares, each valued at $2.70 apiece.

Considering this development, investors are poised to receive 6-8x return on their investment**.

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LiquidWind’s raise in a snapshot

• LiquidWind raised $123K from 71 investors on FrontFundr in 2020 on a 4-month offering memorandum as part of their overall $1.5M raise
• This was their first Canadian round, following two rounds focused solely in Europe
• They focused on pushing paid ads across Canada, focusing on Facebook, Dianomi, and Google
• 80% of investors were non-accredited, retail investors, and 34% were between 35-44
• LiquidWind partnered with another successful crowdfunding campaign listing on FrontFundr, ecologyst, to cross-promote the opportunity as their values and investor profiles aligned quite closely

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LiquidWind is a trailblazing developer of sustainable electro fuel production facilities on a mission to reduce the world's reliance on fossil fuels, particularly in challenging sectors like global shipping. With a robust pipeline of projects underway in the Nordic countries, aiming for over 10 projects with a Financial Investment Decision (FID) by 2030, LiquidWind has become a beacon of innovation since its inception in 2017.

When initially entering Canada and listing on FrontFundr, Claes Fredriksson, Liquid Wind CEO and Founder, commented, “Canada has a growing industry in both hydrogen and carbon capture, and Liquid Wind greatly complements both of these industries. I am excited to connect with Canadians to accelerate our collective, climate-neutral future.”

Now, in addition to its FrontFundr raise, LiquidWind boasts notable investment groups, adorned with multiple accolades.

Just recently, Liquid Wind received the environmental permit for FlagshipONE in Örnsköldsvik, which is co-owned with Ørsted, a dynamic energy company based in Denmark, with construction set to wrap up by 2025. In August last year, Liquid Wind announced that its second facility FlagshipTWO will be developed in Sundsvall. Both facilities are located in north-east Sweden and will produce green electrofuel for the marine industry; supporting decarbonization in the hard-to-abate shipping sector by reducing CO2 emissions with more than 90%. Once both FlagshipTWO and FlagshipTHREE are ready to go, they will be set to produce a whopping 100,000 tons of electrofuel—double the output of their initial project.

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Compared to some of the stats we presented in our post about historical returns, the 6-8x return on investment number (a.k.a. 600-800% return) is particularly impressive especially when considering the typical investment horizon of five years or longer for venture capital investments. Venture Capital's estimated returns generally fall between 25-35%, making LiquidWind's performance truly remarkable.

In the past, retail investors faced barriers when venturing into private markets. However, with an increasing number of Canadians—12.3 million to be exact—participating in public stock investments through online platforms, FrontFundr has emerged as a pivotal bridge to private market participation.

As the allure of private market investments continues to grow, the call for optimized portfolios allocating 10% towards private equity has gained momentum. What's more intriguing is that private market investments have showcased an impressive outperformance of 12.4% compared to their public market counterparts, making it all the more reason to invest.