MIRIS, as a company, specialises in sustainable real estate development. MIRIS X, an investment and project management platform, has fundamentally changed the way the company manages projects and more specifically, how it raises funds.
Read on to find out why it was developed, as well as how it can benefit you as an individual with an interest in sustainability.
What is MIRIS X?
MIRIS X is essentially an investment bank on a platform. It allows investment in environmentally sustainable projects with full transparency. And all investments are recorded and managed on the MIRIS X platform.
How did the idea for MIRIS X come about?
It all started with a phone call with Jan, the CEO of MIRIS, a few years ago. Jan expressed concerns about the traditional methods of raising money and wanted to find an alternative way to raise funding for their property development projects. MIRIS was dependent on traditional loans, bonds and equity raises, which are expensive and cumbersome to execute. They were losing roughly 8% just in the admin process of raising capital.
Our South African team, who have a strong background in fintech, flew to Norway and facilitated a workshop with the MIRIS team, during which we came up with a solution: MIRIS X. We decided that MIRIS should have its own platform to facilitate the fundraising process – from initial capital raise to payment of suppliers and ongoing management of the completed projects.
The team got approval from the regulators in Norway and although the platform wasn’t initially intended to facilitate project management, it was added in order to achieve the level of detail that allows for full transparency across a project’s lifespan.
What makes MIRIS X different from traditional investment platforms?
There is no shortage of fundraising platforms out there, it isn’t a complicated process. But reporting for green projects is complicated, so these kinds of platforms are not as common, especially not when we started building it.
With traditional investments, we would previously go through an investment bank to raise money. The problem is the costs are very high. There are various people involved who all take a cut, which means the return MIRIS has to generate is absurdly high in order to cover all costs and provide a return to investors.
MIRIS projects are all environmentally sustainable, and these kinds of projects are treated differently. Unfortunately, the short-term financial return is not always as high as conventional investments.
The reality is, you might make more money off a piece of land that has a coal mine than off a green housing plan. While there is increasing global pressure, supported by the UN, for organisations to be more green, we’re not there yet.
The problem this poses for investors is typically a lack of transparency from financial advisors. Most advisors are more interested in pure financial return and don’t necessarily pay attention to environmental impact, so they're more likely to recommend low-risk investments that they understand.
We built MIRIS X to allow us to raise money directly from individuals, banks, and institutions on the platform and provide full transparency of the deployment and impact of their investments.
How does MIRIS X solve these problems for individuals who want to invest?
MIRIS X is at the core of the financial operating system of MIRIS, providing stakeholders with a robust, transparent way of ensuring their money is being used for the right things.
If you go to your bank to invest a small amount in a specific project, you’re likely to be turned away. Their admin processes and systems can't process small amounts, so they create investment packages – your money gets lumped with other people’s money, but you don’t necessarily know what’s included in that package. It’s not fair that individuals can’t invest small amounts just because banking systems aren’t geared towards managing those funds properly. We want to allow anyone to invest in sustainable projects through our platform, starting from as little as 100 Euro.
With MIRIS X, no one needs to check our systems. Everything is open for everyone to see. You can see the records of how much money we’ve raised and how we’re spending it. And as with smart contracts, these records can never be destroyed. If we make a mistake, which we have done in the past and then fixed it, it’s a full audit trail. Everything we do and say is quite visible and we can never erase it. It’s completely transparent
On the topic of sustainability: We've also noticed the rise of a conscious type of investment. Many people, typically millennials, are becoming a lot more concerned about sustainability. They care about more than just the return – they want to know what their money is being used for. They think along the lines of, ‘I’m vegan, I sort my garbage, I’m trying to live a more sustainable lifestyle... but what is my bank doing with my savings?’
MIRIS X promises to show you the projects and the progress being made, both in monetary return and carbon footprint impact. We know we have a long road ahead of us, these things don’t happen overnight. But we hope to eventually have millions of investors on the platform.
What is the main goal of MIRIS X?
We want to allow anyone to invest directly in environmentally sustainable projects, have full transparency on how funds flow into these projects. We also want them to see the impact that their money has made, as well as return on investment.
MIRIS X is making green investment cheaper, more transparent, and more accessible – allowing you to make smarter, more informed sustainable investment decisions.
Find out more about how you can invest without harming the planet.