Citizenfund: Doughnut Design Case Study

01 | Brief Summary and Key Facts

The Citizenfund is a participatory citizen investment fund that leverages collective intelligence to support projects with social, educational, cultural and environmental impact. 

• Location: Brussels, Belgium
• Founded: 2017
• Size (turnover, employees): 
• Size of the fund : around €600k (each investment is usually €15k, but smallest was €6,5k and largest €30k)
• Sector: Financial services
• Legal form: Cooperative
• Website: citizenfund.coop
• Main products/services: The Citizenfund provides loans and equity investments to support initiatives with social, educational, cultural, and environmental impact.

Highlight of their unique approach

Citizenfund supports companies that face challenges in securing funding, often because they are  considered too risky because of their early stage or their involvement in the impact sector. 

The fund also attracts an increasing number of companies that are not in urgent need of financial support, but are drawn to the values and community that Citizenfund fosters.

Citizenfund helps these businesses develop through financial support and by facilitating connections within the ecosystem.

The investors (or cooperators) select the projects that the fund supports, based on collective intelligence backed by subject matter experts (field, financial, marketing, etc). This process gives citizens a voice through a democratic and collective decision-making framework, ensuring that every cooperator has a say in the fund's impact. The principle of "1 cooperator - 1 vote" allows for equal participation. By doing so, Citizenfund empowers citizens to use the power of their money and ensures they are heard. Each social entrepreneur comes to pitch their project and explain the general problem they aim to solve. This causes the cooperators to become inspired, educated, and engaged. Through this direct connection between entrepreneurs and investors, Citizenfund strives to transform the transaction into a meaningful relationship.

Citizenfund finances change while transforming finance itself, offering an alternative financial model that is accessible to everyone: one that is transparent, benevolent, and committed to creating a positive impact in essential areas of life.

Highlight of their unique design 

Citizenfund distinguishes itself with its innovative cooperative structure, designed to be accessible to everyone. Starting from just €5, citizens can invest and become cooperators, gaining a voice in the fund's investment decisions. Guided by the principle of "1 cooperator, 1 vote," Citizenfund uses democratic participation to shape its future.

Inspired by permaculture principles, Citizenfund serves as a flexible tool that empowers citizens and can be implemented in various regions and countries. Currently, Citizenfunds operate in Brussels and Charleroi, with a new initiative underway in Liège. This adaptable model can be customized to address the unique needs, challenges, and opportunities of different local contexts, making it a versatile solution for fostering sustainable, community-driven needs.

The Fund has a legal structure of a co-op, where each investor becomes a cooperator with an equal vote in investment decisions

Based in Brussels, Citizenfund is using a franchising model to spread to other locations, while using a centralized platform.  

02 | Founding Story

The Citizenfund was born of the desire of seven Brussels-based entrepreneurs to offer a new participatory financing instrument that would support circular and collaborative economy projects and put the economy at the service of society while deriving economic, social and environmental benefits.

The founding story of Citizenfund begins with Alain Boribon, the founder. Initially, he became deeply concerned about the ecological and social crisis and decided to adopt a more sustainable lifestyle. However, despite his personal transformation, something still felt missing. He soon realized that a root cause of  many of the world's problems was a lack of understanding of finance, its direct and indirect implications on society and environment, and the relationship we have with money, This revelation led him to create Citizenfund, a participatory investment fund aimed at supporting social and environmental impact projects through collective intelligence. The Citizenfund could become a vaccine to classical and even impact finance.

03 | Industry Context

Attracting investment is difficult for impact start-ups. Loans are often denied without sufficient collateral. Equity investments are typically dominated by traditional venture capital, which often undermines the impact goals of the business through a focus on unsustainable growth and unrealistic exits.

While many "impact funds" have emerged, most still replicate traditional fund models, using the same methods and strategies. The Citizenfund, however, was created to disrupt this norm and provide a fresh, unseen alternative. Initially seen as idealistic, the concept has now been demonstrated with over 30 funded projects and 280 cooperators involved. Their vision is to turn this proof of concept into a standard way of financing impactful projects. 

Citizenfund aims to establish another form of finance in society, one that serves the common good, is driven by citizens, and is accessible to everyone, regardless of age, skills, status, or gender. Their intent is that this form of financing will be transparent, collaborative, and easy to understand. Their larger intent is to help transform the world into a place where everyone wants to live.

04 | Regenerative & Redistributive Strategies and Ambitions

Citizenfund’s goal is to finance change, but also to change finance itself. Some of the attributes that make it regenerative and redistributive include:

• All investments are local
• Every entrepreneur pitches to the cooperators
• Focused on initiatives and start-ups that will have positive local impacts
• Investments that have a positive impact on communities will be considered, even if they don’t create a dividend for the investors 

Citizenfund’s approach is rooted in regenerative and redistributive principles, solely focusing on investments that directly benefit both the community and the planet. The focus is on supporting projects across all sectors, embracing a transversal approach to change. This ensures a comprehensive and systemic transformation, as the idea is that change is not confined to a single sector—it transcends industries, with each contributing to a larger, interconnected evolution within the community.

Citizenfund also takes a regenerative and redistributive approach in that the projects it supports may not always deliver financial returns in the form of dividends. The outdated notion of prioritizing profit above all else is no longer viable, especially if we want a sustainable future. Too often, profits are generated at the expense of others or the environment. In these cases, some projects selected by cooperators may never generate profits, but they are self-sustaining and serve a greater purpose for the community, such as in culture, education, nature or other essential sectors. These projects are necessary and valuable, even without financial returns.

However, this is not philanthropy: the money invested in Citizenfund remains within the ecosystem. It is invested in the form of equity or loans. This model seeks to address issues at their root, rather than offering temporary fixes. The goal is to create long-term, sustainable solutions that benefit society, the environment, and the investors alike.

Citizenfund’s ultimate goal is twofold: to finance change and to redefine the financial system itself, fostering a more equitable and sustainable future for all.

All the projects supported by Citizenfund are designed to generate positive financial returns or, at the very least, become self-sustaining in the medium or long term. While each project is designed to avoid financial losses, it is important to note that the reality of investments can sometimes differ from initial forecasts. 

Some projects, particularly those in the launch phase or in emerging sectors, may require more time to achieve profitability. For these start-ups, a positive financial return is generally expected in the long term. On the other hand, some projects experience rapid growth and generate more significant financial returns from the outset. As with any investment, there are inherent risks in entrepreneurial activity. Some projects may face difficulties, and in the worst case, may fail or go bankrupt.

As of early 2025, Citizenfund has invested in 33 projects. Of these, 5 are no longer part of the portfolio. One has achieved a positive exit, meaning it generated a significant return on investment. One had a negative exit and three failed, resulting in a loss of the initial investment. This loss rate is relatively low, especially in comparison to other impact investments funds or crowdfunding platforms or start-ups. Of the 28 projects still in the fund, some are already self-sustaining, others will be profitable in the medium or long term, and some have already become profitable.

The idea is to have a balanced portfolio that consists of some economically profitable projects and others that generate ‘’only’’ a social and /or environmental “return.”

For cooperators, financial returns are determined collectively, based on the projects and their performance. If the fund generates profits, these can be reinvested, redistributed, or allocated according to the democratic decisions of the cooperative members. As Citizenfund operates as a social cooperative, investors can receive a maximum financial return of 6% per year, in accordance with the law. There is no guaranteed return, as the focus is on long-term, systemic impact rather than short-term profit maximization. That said, investors retain ownership of their capital, which remains within the ecosystem and continues to serve regenerative purposes. If investors wish to withdraw their money, they can do so annually.

05 | How the Deep Design Enables Strategy and Action

Citizenfund's deep design is central to its strategy and action, enabling the fund to fulfill its mission of promoting social, environmental, and cultural impact through citizen-driven investments. Cooperators have 1 vote each regardless of their investment amount. Other citizens (non cooperators) can also join the pitch sessions  to debate but have no voting right.  Investments can be in the form of loans and / or equity. To date, Citizenfund has invested in 30 projects. Most are start-ups and most are co-ops.

The  foundational structure supports the fund's objectives in a few key ways, outlined below.

Legal form as a Co-op

The co-operative model ensures that every cooperator has an equal voice in decision-making, with the principle of "1 cooperator, 1 vote." This democratic structure is a key part of Citizenfund’s strategy to empower citizens to take an active role in shaping the fund's investment decisions. It fosters collective ownership and responsibility, giving cooperators a direct stake in the outcomes of the projects supported. The cooperative model impacts all investment decisions at Citizenfund, as the decisions are made collectively by the citizens themselves. This process relies on collective intelligence, leveraging the skills and knowledge of each of the 280 cooperators. Every project undergoes a three-step verification process before being presented to the cooperators:

1. Pre-screening by Citizenfund's operational team: The first step is to check whether the project meets the fund's selection criteria.
2. Evaluation by the selection committee: Before the project is submitted for a vote by the cooperators, it is evaluated by a small group consisting of two external experts specialized in the project’s field, two cooperators elected annually for their expertise, and a co-founder. This committee assesses whether the project is strong enough to be presented to the cooperators.
3. Presentation and meeting with project leaders: The cooperators are then invited to an evening event where they can listen to the project leaders' pitch and interact with them to better understand the issues and objectives of the initiative. Afterward, the cooperators have access to all the necessary documents to thoroughly analyze the project through Citizenfund’s online platform. They can then decide whether or not to support the project.

This cooperative model is radically different from that of traditional financial institutions. In a conventional model, a team of financial experts, often detached from the field and social issues, would analyze a project based on strict financial criteria, without considering the diversity of skills and perspectives that citizens with experience in various fields can bring.

In Citizenfund’s cooperative model, the final decision rests with a broad and diverse group of cooperators and sometimes outside experts, each bringing personal experience and specific expertise. Thus, projects are evaluated from multiple angles and through a collective, democratic perspective. This process ensures a more inclusive decision-making approach, one that is better aligned with social and environmental issues, as opposed to traditional models that primarily focus on short-term financial returns.

Permafinance model and platform as a commons

Citizenfund’s approach is inspired by permaculture principles, which focus on sustainability, regeneration, and holistic systems. This influence allows the fund to expand across different regions or countries (through a franchising model) while maintaining its commitment to long-term, community-driven impact. 

This expansion is supported through Citizenfund’s platform, which remains a shared "commons," accessible to all citizens. The platform is designed to be adaptable to the specific needs and challenges of each local context, ensuring that it can evolve based on the unique circumstances of different regions.

This "commons" approach fosters scalability and ensures that Citizenfund can grow organically while staying true to its core values of inclusivity, sustainability, and social impact. By decentralizing the platform, Citizenfund not only empowers communities to lead local change but also ensures that its model remains flexible, responsive, and rooted in the specific needs of the communities it serves.

A quote from Astrid Huberland summarizes the philosophy behind the platform: “Everything in our approach is based on sharing. We are here to support citizen-driven initiatives. Through our experience with the creation of the first Citizenfund in Brussels seven years ago, as well as the establishment of new ones in Charleroi and Liège, we have built on best practices and developed a toolkit that is available to anyone who wishes to implement a Citizenfund in their region.”

This toolkit includes several key components:

• General Overview of Citizenfund: Introduces the philosophy behind Citizenfund, its purpose, and how it operates.
• Setting Up a Citizenfund: Provides detailed guidance on the practical aspects of creating and managing a cooperative and on structuring and aligning teams. Since these initiatives are often led by volunteer groups, it is essential that they develop a shared vision and integrate the project internally.
• A structured series of meetings and workshops, each with clear guidelines and exercises. These help teams meet regularly, exchange ideas, and ensure alignment on the project's mission, objectives, roles, values, and tasks. The approach leverages collective intelligence and active listening, making it highly adaptable to the specific needs of different regions.

This toolkit will soon be available on their website, ensuring accessibility for anyone interested in launching a Citizenfund in their community.

To maintain the shared services and centralized structure, there will be a contribution from franchisees. Additionally, a representative from each Citizenfund will participate in Citizenfriends, ensuring alignment, collaboration, and shared learning across all Citizenfund initiatives.

To further support this effort, Citizenfriends, a dedicated NGO, will centralize essential services and propose economies of scale across all Citizenfunds. This shared platform will manage core activities such as website development, awareness campaigns, and sensibilization at fairs (including universities, etc.), among other initiatives.

If Citizenfund followed a profit-maximizing model, it would likely focus on rapid expansion and charge licensing fees for access to its methodology and tools. However, Citizenfund’s approach is fundamentally different—it prioritizes knowledge-sharing, community support, and collaboration over financial gain. By making its resources freely available, Citizenfund empowers local communities to take ownership of their initiatives, adapt them to their specific needs, and drive meaningful change. The small contribution requested from the various Citizenfunds will be used to maintain/improve the common platform and general coordination.

Inclusive participation

Citizenfund fosters an inclusive participatory model by engaging citizens from all ages, social classes, and backgrounds. This approach strengthens the decision-making process by valuing the diverse perspectives of the community. The goal is to show that finance can be accessible, transparent, and understandable for everyone, regardless of financial expertise.

By involving individuals with a wide range of skills and experiences, Citizenfund highlights that competencies beyond financial knowledge are essential in evaluating projects effectively. Using collective intelligence, this inclusive model encourages citizens to contribute their unique insights, fostering a more holistic and democratic approach to impact investing. They also treat nature as an essential stakeholder by having a representative of nature in the decision making process.

By aligning its legal form, participatory governance, and inclusive strategy, Citizenfund effectively uses its deep design to foster community-driven investment and create a tangible impact while addressing critical social and environmental challenges.

06 | Reflections and Lessons for Other Businesses

Citizenfund has demonstrated that organizations can create a model that can spread (with minimal barriers) through replication and adaptation. 

Citizenfund has gained valuable insights through its experience expanding its model to new cities like Charleroi and Liège. One of the key takeaways is the importance of creating a comprehensive toolkit that enables citizens to replicate the Citizenfund model in their own regions or countries. This toolkit will feature a concentrated mix of best practices and key learnings to ensure a smooth and effective implementation process.

While each Citizenfund remains locally tailored—adapting to the unique context, challenges, and opportunities of each region—it will benefit from the efficiencies provided by the centralized framework. By combining local adaptation with shared services and providing a free, accessible toolkit, Citizenfund empowers citizens everywhere to create their own initiatives. This approach makes it easier for communities to harness collective intelligence and drive meaningful, impactful change.

This case study was researched and written by Astrid Huberland and Alain Boribon in collaboration with DEAL.