Thread by @d_gershenson

An incomplete list of all the ways to finance your #climate startup or small business:

Grants: private foundations, corporate foundations, municipal/state/federal agencies. @sbirgov, @ENERGY, @USDA, @CalEnergy, @NYSERDA

Get help from folks like @Finance4Climate; find opportunities at @opengrants_io

Equity: angels, syndicates, institutional VCs, corporate VCs, family offices, etc

@climatetech_vc has the definitive list for institutional VCs. Groups like @ToniicNetwork and CREO bring fam offices together

Proof of concept/pilot financing: more rare, but an emerging category. @laincubator is one example offering this financing to startups in the space, @Breakthrough Catalyst is another

Corporate advances against receivables: this includes PO financing, invoice financing, factoring, etc. Also includes products like our Climate Grant Advance at @enduring_planet.

Revenue Based Financing: like an advance, but for your revenue! Great for early-rev and high growth companies.

Shameless self-plug: @enduring_planet is the ONLY firm providing RBF exclusively to #climate entrepreneurs

Venture Debt: debt which generally comes with warrants and follows venture rounds led by top investors

@SVB_Financial is the largest venture debt investor in #climate from what I know

Dequity: creative debt structures with equity components; not convertible notes but more bespoke structures for later-stage companies.

@Aegon Asset Management is a good example

Growth Equity (not to be confused with late stage venture): dilutive investment with different return and time horizons, focused on durable and sustainable growth; typically need $20M in ARR+

@BuildersFund focuses exclusively on impact and plays actively in the space.

Off-balance sheet Receivables Financing: for those who generate predictable revenue from assets. Think EV leasing, heat pump financing, and other hardware-as-a-service models.

@ThirdSphereHQ credit fund focuses on this exclusively. @perlstreet a great tool to get you ready

Crowdfunding (generally equity): raise capital from non-accredited investors at scale; great model for businesses where community plays a big role

@Wefunder, @joinrepublic are two examples, but there are lots

Bank loans: for companies with at least 3 years of operating history, profitability, and collateral (and often personal guarantees). Lower cost than unsecured credit options mentioned above, but more complex

@AmalgamatedBank, @BeneficialState are both very active in the space

Project Finance: this is a big one and constitutes a MASSIVE portion of all climate finance. Off balance sheet debt and equity are both possible, along with other forms (tax equity, etc)

@GenerateCapital is a major player, but the list is long and often industry specific

Consumer financing: not necessarily a form of getting your business funded, but this lowers the barrier to customer adoption so...kinda? Residential solar, EV loans, energy efficiency retrofit financing, etc.

@joinmosaic, @SunlightLoans are two examples

Government loan programs: LARGE loans and loan guarantees for later-stage companies, from our friends at @ENERGY. Big tickets, low rates

What did I miss?

Oh, Carbon Offsets! Can't forget those. Get certified/verified using a registry like @goldstandard or @VerraStandards and boom! Money per ton!

And Venture Leasing! It's like receivables financing, but on balance sheet! Basically converts CAPEX to OPEX; groups like Kineo Finance are the folks to talk to in these contexts.

Accelerators and Incubators: most provide non-dilutive or dilutive funding for companies when they participate. @NewEnergyNexus, @GreentownLabs, @elementalexcel, @laincubator, @LaunchAlaska, @cleantechopen, @activatefellows, @indbio, and many more!