This case is about a German company, active in developing and exploiting windfarms and other sources of renewable energy. What makes this company interesting is that it relied on less conventional ways of financing, issuing Profit Participation Certificates (PPCs) instead of bonds or shares. The company mainly targeted individual investors, and offered them certificates with an annual return between 6% and 8%. The company was fairly successful in attracting these “household investors”, growing the invested capital roughly by 50% year on year. This type of funding is sometimes referred to as “crowdlending”. Based in Itzehoe, near Hamburg in Germany, Prokon was founded in 1995 by Carsten Rodbertus. The company was established to leverage sources of renewable energy in order to secure a sustainable, environmentally sound and responsible energy supply. In 2011 Prokon’s portfolio consisted of projects and concepts for a future free from dependency on the “potentially harmful and limited”1 resources of oil, natural gas, coal and nuclear power. The company invested in wind energy, biofuel and biomass. Most of its resources were focused on planning, financing, building and managing (technically and commercially) wind farms, as well as on selling electricity to end customers. Case A takes the perspective of a prospective investor, Ms. Müller, and ends with the question whether or not to invest in Prokon PPCs. Case B picks up when PPC holders have already begun to cancel their investments en masse and Prokon is on the brink of bankruptcy, following increasing claims of a Ponzi scheme. Panic and uncertainty set the tone of the situation.
Thinking about a career change? Keen to move industry or transition into a new role? IMD professors share the best advice they have received or gleaned over their careers.
Marketing campaigns for sustainable offerings often fail, leaving businesses with products that do not sell. This short guide will help you target customers more effectively. Marketing campaigns for sustainable offerings often fail, leaving busine...
Here are three strategic lessons from the tramp shipping industry.
Companies need clear guidance to achieve sustainable business transformation. A practical roadmap identifying drivers for effective change can make success more likely.
Why the market for new year predictions is broken and how executives can better use forecasts to discern the implications for their companies.
Power is neither good nor evil; nor is it the ultimate goal. The chief aim is to show leadership, which comes down to how you use your power. Power is neither good nor evil; nor is it the ultimate goal. The chief aim is to show leadership, which c...
GenAI is becoming a more common feature of the supply chain function, but significant areas of opportunity remain, suggests IMD’s Carlos Cordon
With fact-checking out and community-driven moderation in, Meta is betting big on free speech – but critics warn the move could open the floodgates for disinformation and online harm.
Strategic thinking is key to success. Overcome common excuses and develop the skills to navigate change, drive innovation, and prepare for future business challenges.
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications