Interview with Joseph Choueifaty, CEO and founder of Goodvest, who shares his desire to change the world and outlines the keys to the successful takeoff of their company.
When and how did the idea to create your company come about?
The idea came to me during the first lockdown. I was pursuing a master’s degree in HEC Entrepreneurs and was looking to invest a portion of my savings sustainably. I encountered a real problem: while there were numerous funds labeled ISR (Socially Responsible Investment), there was no way to have irrefutable proof that these funds did not invest in fossil fuels or adhere to the Paris Agreement. I wanted to be certain that I was not financing fossil fuels and that the investments were genuinely sustainable. That’s why we decided to create Goodvest. The goal is to democratize responsible investment that is transparent to ensure it’s not greenwashing. We developed our own proprietary methodology, which, for example, is the first to be 100% compatible with the Paris Agreement. It’s a mission-driven company.
It seems you have a co-founder?
We are two co-founders. My partner, Antoine Bénéteau, is the co-founder and CTO, responsible for all things tech and product-related. As for me, I am the CEO and primarily handle the business side.
When did the idea come to you?
The idea came to us in March 2020, and the launch took place in September 2021. It took a little over a year to establish strategic partnerships, including with Carbon4 Finance, which assists us with carbon footprint, and Generali, the insurer for our investment envelopes. Our business required significant initial capital. Thus, we spent nearly a year defining the methodology, designing the investment product, and launching it.
What have been the major milestones until now?
The major milestones were the initial product launch. About eight months after the launch, we introduced our Impact tab, which is unique in the market. It allows savers to visualize the impact of their savings, know the carbon footprint of their investments, the CO2 emissions avoided and reduced, as well as the carbon trajectory directly from their client account. This was a crucial step. Then, a few months later, in late 2022-early 2023, we launched Goodvest Kids, which is a second product that enables parents to invest for their children. The latest step is the launch of the Retirement Savings Plan, our third product.
Where are you today, and what explains your success?
Since the launch of Goodvest, we have convinced over 4,000 clients in 18 months, making it the most successful launch to date for online savings solutions in France, with over 30 million euros in collections. We are now close to 40 million. We’ve experienced a significant launch, and the key to our success lies in our differentiation. While there are many responsible investment solutions on the market, there are no pure players; however, there are many offers. What sets us apart and explains our success is that we are the only ones with a genuine methodology that doesn’t solely rely on labels.
Today, the majority of so-called sustainable offers engage in greenwashing. Our methodology completely excludes anything harmful, particularly all fossil fuels. When someone invests with Goodvest, they can be certain that not a single euro finances fossil fuels and that the investment complies with the Paris Agreement. In other words, the trajectory of a maximum two-degree global temperature increase is respected. This is possible, especially thanks to our partnership with Carbon4 Finance, which provides complete transparency on the impact of savers’ investments. That’s what truly explains our commercial success today.
What does Goodvest Kids do?
Goodvest Kids is essentially the same offering as Goodvest, but for parents who want to invest for their children. It involves starting to build a capital for them to use for financing their education or as a contribution to buying a primary residence. The idea behind Goodvest Kids is to offer a savings product with a return that is more attractive in the long term than regulated savings. We know that the current rate for the Livret A is 3%, and it has a cap. Inflation is around 6-7%, so it’s not very profitable, especially in the long run.
When we talk about such an investment, if you open it when the child is born and they only start using it at the beginning or end of their studies, 18 or 25 years could pass. And 18 or 25 years times the difference between the return on regulated savings and inflation can be costly in the long run! There is a real need to offer a product that is more suitable than minor savings accounts.
Are there other considerations?
The second consideration, which is even more important, is to offer a product that will not compromise their future. Because minors born today will live in 2050 and, for the majority, we hope, until 2100 or beyond. They will truly experience the consequences of climate change. Today, it doesn’t make sense to build these children’s savings by financing, for example, fossil fuels that will destroy their future. This is the case for the majority of savings products today and also for savings accounts. At least, there is a significant lack of transparency and financing that is completely misaligned with climate challenges.
What does the third activity you’re launching correspond to?
The third is the Retirement Savings Plan. It has just been officially launched. The Retirement Savings Plan is a complementary retirement savings project that operates in the same way as our first two products. Today, we know that some French people do not rely solely on state pension payments and want to start preparing for their retirements on their own.
The Retirement Savings Plan is designed for this purpose. It has “classic” tax advantages that are not negligible. You can deduct a portion of the contributions from your tax return, according to specific but advantageous conditions. The goal of Goodvest’s Retirement Savings Plan is to allow people to prepare for their retirement, benefit from tax deductions, and, more importantly, do so by investing in companies and projects that contribute to combating climate change.
What is your investment methodology?
The investment methodology is the same, whether for Goodvest, Goodvest Kids, or the Retirement Savings Plan. What changes is the product’s objective. Goodvest is life insurance, and these are medium- to long-term projects. Life insurance is typically an investment for a few years, generally up to a decade. The Retirement Savings Plan covers a longer duration. Goodvest Kids, on the other hand, is an investment more suitable for minors.
The goal remains the same: not financing fossil fuels, adhering to the Paris Agreement, providing transparency to savers, and also a level of customization. We give savers the opportunity to choose their investment themes with a portfolio that truly aligns with their values. We offer the ecological transition theme, which is present by default, and additional optional themes such as forests, access to water, climate solutions, etc.
You mentioned raising 30-35 million. Did you need to raise funds for your structure?
Absolutely. We have already raised funds for Goodvest. We completed a 2-million-euro fundraising last year, and we will likely raise funds again by the end of this year. In practice, we are financed today by both Business Angels, VCs, and debt.
Why do you want to raise funds again? To accelerate your development?
Exactly. There is a crucial issue, which
is the impact of savings. Even though we raised a significant amount and collected nearly 35 million euros, it is very little compared to the total savings of the French and even less compared to that of Europeans. If we really want to speed things up, we need to go even further, faster, launch new products, develop new strategic partnerships, and all of this naturally requires capital.
How did you make yourselves known so that the offer worked immediately?
From the beginning, we worked on a very strict methodology. As a result, our brand is now recognized by financial experts as the reference for environmentally engaged investment and savings. This has led to strong word-of-mouth, particularly from opinion leaders with a significant audience. It has been a significant lever.
Another lever is the creation of content. We do a lot of educational work, both on investment and specifically on impact investment. We produce a lot of content, whether on social networks or our blog. We also have a forum dedicated to responsible investment where people can ask questions and engage in discussions. Today, we try to reach as many people as possible by producing quality content and genuinely showing our commitment. We provide maximum transparency, and that’s what truly explains the rapid start of our company.
What will be the upcoming challenges?
The challenge is to move to the next level! Today, we have 4,000 clients. We aim for around 10,000 by the end of the year, and we are on track to achieve that. We have already doubled the number of clients since the beginning of the year, so reaching 10,000 should be achievable without much doubt. The challenge is to go from 10,000 clients to 50,000. That’s what we are already preparing for by building a truly 360-degree offering on Impact Investment. We have life insurance, minor life insurance, and the Retirement Savings Plan. Tomorrow, we also want to offer other asset classes, such as real estate, in private equity. These are our challenges. Additionally, creating new partnerships is a significant development axis with a lot of potential.
What has been the biggest difficulty you’ve encountered and how did you overcome it?
The biggest difficulty was building a product with a truly solid and transparent methodology. We worked hard to achieve this. We relied on strong partners like Carbon4 Finance, and right from the start, we hired someone to take care of the socially responsible investment and portfolio analysis. Today, there are already two people working full-time just on this aspect. We focused from the beginning on providing transparency.
Today, “we only do what we say, and we only say what we do,” which is evidence that there is no greenwashing. In fact, there are no surprises. The methodology is available on our website and accessible to everyone. You know exactly why you invest when you do it with Goodvest. We try to maintain an approach that is humble and solely focused on eco-responsible investments.
Why was it so challenging?
3 Tips from Joseph Choueifaty
It was challenging to set up initially because there is little transparency in the financial industry. We sought transparency by signing confidentiality agreements with asset management companies to access all their inventories, forging partnerships with Carbon4 Finance, and developing an Impact tab on our client account. Today, I think we have come a long way, but there is still much to do to improve the methodology. We need to provide even more transparency to clients. And this is a journey that is far from over!
1. Consider climate change regardless of the type of company entrepreneurs are launching. There are two reasons. I think the dual materiality of climate change is crucial. You need to ask yourself the following question: “How will my company and project impact the climate?” Today, it is challenging to find clients and funding. And it will become even more difficult. Standards are being established, and you won’t be able to bypass them if you don’t comply with this.
2. Consider dual materiality. It’s about asking the question, “How will climate change impact my business.” Regardless of the type of project, for example, for a real estate project, it’s essential to consider climate change. We won’t build a house 50 centimeters above sea level. It’s the same for all businesses.
3. It is important today to have an economic development goal and to seek other objectives. The company must have a real mission. It doesn’t suit all companies, but many can benefit. In addition to having a positive moral impact, it helps with recruitment or financing. Even if, for some entrepreneurs, the climate might not be their cup of tea, there are other social and societal challenges that exist.
