FAQ
The most frequently asked questions about Rikx in a row. Still can't figure it out or do you have a different question? Then contact team Rikx at info@rikxplatform.nl.
What is Rikx and what is it used for?
Rikx helps impact creators (social entrepreneurs) grow by connecting them with committed impact investors (companies). On the online platform, investments can be made in the most impactful entrepreneurs of the moment. Indeed, Rikx has developed a methodology by which the impact of these impact makers (or impact projects) is measured in advance and expressed in a monetary value. As a result, as an impact investor, you know that your contribution will go to the right place!
So how does Rikx work?
Impact makers apply to the Rikx platform and, when a new round opens, submit a project plan. An expert team evaluates the plan and uses it to determine which projects are and are not part of the new round. Companies (impact investors) can invest on the platform in the project that most appeals to them. The project starts when a minimum amount is raised, which we call the threshold. Read more about this in one of the other FAQ questions. Finally, impact investors can use Rikx to fulfil their social return task with the municipality.
What or who are impact creators, impact investors and impact governments?
Impact makers are the impactful entrepreneurs who work to create a strong and social city where everyone can participate. They are also known by the term "social entrepreneurs". Impact investors are the committed (Rotterdam) entrepreneurs who would like to contribute to this social city by investing in the impact makers' projects. Impact authorities in turn are the municipalities and government bodies that want to work towards a strong and social city through the Rikx formula.
What does the term "round" mean?
Rikx works with rounds. A new round starts with a period in which impact creators can submit a project proposal; this is about a one-month period. Project submissions then close, after which they are assessed by an expert team. See also the information at one of the other frequently asked questions regarding submitting a plan or the rating of the plans.
After a positive valuation, the projects will appear on the Rikx platform for a period to be determined. Depending on the success of the round, this might be six months or a year, for example. Eventually, a round closes to make way for new projects in a new round. This way, everyone gets a chance to submit a project plan.
What is the relationship between a "Rikx" and a euro?
All projects on the Rikx platform have invaluable social value. However, to make this social value transparent, team Rikx translates it into a monetary value: Rikx. For further clarification regarding the valuation of projects, which ultimately leads to a monetary value, please read further under the heading: How are projects valued?
Making an investment, what does this process look like?
In the project overview, select a project of your choice and click on "Invest Rikx". In the new screen, you can indicate how much Rikx you want to invest in the project and leave some details. It is possible to invest in multiple projects, but each investment must be submitted per project via the website. Team Rikx receives this investment request and sends a confirmation requesting you to agree to the general conditions and fill in the company details via a form. Based on this data, a receipt is sent to the investor. Once we receive the amount, we prepare a certificate as proof of payment and send it electronically.
I have a social return assignment, how does this work with Rikx?
Have you been awarded a contract by a municipality in the Rijnmond region? If so, the municipality asks you to make an effort to help vulnerable groups in the city or region. We call this a social return (SR) task. The aim of social return is to offer opportunities to people who need just a little more help in finding a job. With Rikx, (part of) the SR task can be fulfilled. Ask your WSP Rijnmond account manager, who will guide you in completing your SR declaration.
Via Rikx's online platform, you get the opportunity to invest in the most impactful entrepreneurs of the moment. After actually paying the investment, the certificate follows from Rikx. This certificate can be uploaded in WIZZR, the social return registration system of WSP Rijnmond, and thus serves as a completion of the SR statement.
There are specific rules regarding the maximum investment amount in Rikx:
If you have a social return specification up to €10,000, 100% of that amount can be invested in Rikx.
If you have a social return assignment above €10,000, a maximum of 25% of the total social return assignment can be invested in Rikx.
Do you have questions about your social return statement or questions regarding these conditions? Then contact your account manager at WSP Rijnmond.
I don't have a social return assignment, can I still do something with Rikx?
Of course. We hear that more and more companies are keen to give something back on a social level for the city where they earn their money. To this end, Rikx offers a safe investment in projects that make a local impact on a human level. With measurement in advance, matching to projects according to your preference and monitoring of the projects, you can be sure that your investment is well spent.
If you want to do corporate social responsibility for several years in combination with Rikx, it is possible to apply your company for the partner programme. If you are interested in becoming a partner of Rikx, please contact us and ask about our partner programme via info@rikxplatform.nl
I am a social entrepreneur with a plan, what should I do?
If interested, send an email to projecten@rikxplatform.nl so we can keep you informed of developments. When opening a new round, it is possible to submit a project plan via a form. This form formulates the requirements the project plan must meet. After a certain period, the form will close and the expert team will start working on the valuation of the projects. Read more about this in one of the other FAQs.
After the valuation, it will be announced which impact makers will be allowed to participate in the round and thus which projects will be posted on the Rikx platform. Team Rikx will provide the necessary support and contact moments during the round. Commitment is also expected from the impact makers during the course of the round in which a participant participates, in order to increase attention for Rikx and for themselves. This could include jointly drawing up communication tools for the project and Rikx; actively thinking along and participating in approaching potential impact investors; providing visual and text material about the project; participating in events and company visits; and other efforts to be determined. Read more about this in our General Terms and Conditions.
If the project's threshold is reached during the course of the round, the money is paid out and the project can start. There is also close contact with team Rikx about this.
How are the projects rated?
Rikx values the submitted project plans of impact makers in advance to say something about the impact made by the project. This methodology to arrive at a final valuation works as follows:
Impact makers must submit a project plan, which at least addresses the nature of the intervention, size and characteristics of the target group and the ambition and objectives of the plan. All project plans are individually scored by a team of five experts, consisting of a mix of scientists in the field of impact economics, consultants with knowledge and experience of social returns and possibly other non-stakeholder impact makers.
The experts rate each project on a scale of 1-10. In a joint session, using the Delphi method, they work towards a supported average score per project. Prior to the scoring, experts receive a framework in which the Rikx core team describes the elements to be scored and the factors to be taken into account. In the case of Rijnmond region, it was stated that the project should specifically focus on labour market participation, primarily expressed in the step towards employment, or steps on the participation ladder in preparation for the step towards employment (becoming fit for work).
The Rikx core team takes the valuation from the expert team and translates this valuation into a number of Rikx (a financial value) to be offered for sale by the impact maker through the Rikx platform. To translate this valuation into a number of Rikx, the Rikx core team takes a few steps, in which the scope, valuation and cost of the project play a major role. From this, a ranking follows in which the projects with a high "impact versus cost" ratio are placed at the top, and those with a lesser value, at the bottom.
The Rikx value of a round is set at the value at which a predetermined percentage of projects have a positive business case. This also depends on the total number of applications. Projects below this predetermined percentage are dropped, those above this percentage are admitted to the round and are allowed to offer their project on the platform. Above the predetermined percentage, projects with a higher impact versus cost ratio even have increasing room to offer additional Rikx above the threshold (the cost of the project). The more impact is made relative to the cost, the more excess value a project has and thus the project yields potential social benefits.
A threshold value? What does this mean?
The threshold is the cost of the project. This is the minimum amount of investment an impact maker needs to receive before any money is disbursed. However, this does not stop the sale of Rikx. The remaining Rikx that are sold concern the surplus value. This can be seen as the impact, expressed in euros, that the impact maker receives. Every Rikx sold above the threshold value is profit for the impact maker. We see this as a good incentive to make more entrepreneurs social. Because doing good and making money can go hand in hand.
A surplus value? What does this term mean?
Rikx uses a methodology that determines the social value of projects by impact makers and expresses this value in financial terms. To participate in the Rikx platform, the estimated social value (the impact in euros) of a project must be greater than the costs required to carry out that project. The positive difference between these costs and the estimated social value is called "surplus value". This surplus value can then be offered via the Rikx platform, offering impact makers the chance to generate additional income.
Specifically, if an impact maker creates more social value than the cost of their project, they get to keep the excess value. They have complete freedom to decide how they want to spend this surplus value within their organisation. This could mean investing the money in growing their current project, further developing their organisation, or even setting up new initiatives. This flexibility allows impact makers to operate in a sustainable and innovative way and continue to generate social impact.
All in all, the Rikx platform offers impact makers an opportunity not only to realise their projects, but also to strengthen and grow their organisations through the positive surplus value they create. This highlights the power of social impact and creates a win-win situation for all involved.
What happens when a round closes?
At the closing of a round, it is no longer possible for investors to invest in impact makers' projects. Some projects will have already reached their threshold and received the money, others will not (yet) reached their tresholds. So there is the possibility that no or not enough Rikx have been sold to allow the project to start. The invested number of Rikx that fell below the threshold for a project will thus lapse. These sold Rikx will be made available to projects that can reach the threshold value as a result. Here, projects that have almost reached the threshold value (75% or more) are given priority. After that, the most efficient projects are considered, based on the expert team's valuation in relation to the cost price of the project. We aim to have as many projects as possible reach their threshold value so that as many projects as possible can start. Of course, we keep impact makers and impact investors informed of the steps. With this process, we close one round so that a new round can start.
Where can I buy Rikx?
For now, it is only possible to buy Rikx in Rotterdam. In the short term, we expect to further expand the Rikx platform to other municipalities at home and abroad.
What is one Rikx worth?
During Rotterdam Round 3, the value of Rikx is set at 43 euros per Rikx. It is only possible to invest whole Rikx units.
What amount of money can I invest?
This consideration is entirely up to you! It may depend, for instance, on the amount of your social return fulfilment. Please pay attention to the conditions of the WSP Rijnmond when you invest from the social return point of view. But the amount of the amount may also depend on what your corporate social responsibility goal is. It is already possible to invest as little as 1 Rikx (43 euro). The average amount invested per investor is 2,500 euros, around 58 Rikx.
Will I get something in return if I buy Rikx?
First, a good feeling, because you have just contributed to improving the life of someone with a vulnerable position in society! But, depending on the amount you invest, there is a quid pro quo in return in the form of an impact story for your own socials to a social media campaign and a special offer from the impact makers themselves. Read more about our impact packages on the website. Anyway, you will be informed about the start and progress of the project.
Are there any costs associated with Rikx?
There is no cost to Rikx as an impact creator or impact investor. 100% of Rikx sold goes to the projects. Rikx facilitates funding for promising initiatives that remove barriers. For municipalities, Rikx offers a route to strengthen the connection with these entrepreneurs, as well as an additional route to fill in social return by contracted companies. Rikx's revenue model is therefore not about skimming sales, but through a subscription model for municipalities.
I work for a municipality and am interested in Rikx. What should I do?
The Rikx method is scalable to other municipalities and/or regions. We would be happy to get in touch to tell you more about this. Please contact us via info@rikxplatform.nl and we will get back to you about the possibilities.
What are the Terms and Conditions?
Read our Terms and Conditions here.
How can I get in touch?
We can always be reached at the e-mail address info@rikxplatform.nl