A stable planetthe new tech firm, which finances exclusively climate entrepreneurs, is processing its first product after receiving $ 5 million in debt and equity financing.
The company seeks to quickly deliver debt capital to startups and small businesses that focus on climate, such as reducing emissions or helping humanity adapt to the catastrophic consequences of burning fossil fuels. “When the world is on fire, it’s important that we act quickly and not take six months to close the deal,” co-founder and CEO Dimitri Gershenson told TechCrunch, promising to deliver checks to $ 500,000 in less than 30 days. companies that meet certain criteria.
Because of the gates, Enduring Planet offers income-based financing to companies that bring in more than $ 25,000 a month. In exchange, companies must transfer part of their monthly income (up to 7%) to the Enduring Planet, in addition to 3% more from the top and 1% birth fee until the loan is repaid. So far, it is funding two startups: New Sun Road, which creates software for renewable micronets, and Aquaoso, a company on climate risk.
In recent years, many revenue-based financing options have emerged, including proposals from Striped and Unclosedthat swallows sales data to predict future profits. Enduring Planet also does this by using its model as an alternative (or complement) to adjustable venture dollars.
In the world of venture capital, the founders are handing over some control of their business to venture capitalists – and consequently to their limited liability partners, many of whom are entrenched in the fossil fuel industry. Conversely, Enduring Planet does not accept stocks or collateral, but has other requirements, including that businesses have significant gross profits (north of 35%) so that they can withstand monthly payments. The model is incompatible with startups with like-razor profits, such as new electric car firms, but it has some flexibility: “If a startup has a bad month, it’s not on the hook for a large principal and interest payment,” Gershenson said, adding that Enduring Planet “is already piloting a second instrument that allows us to offer non-dilutive capital to entrepreneurs” who are not eligible for income-based financing.
Enduring Planet’s $ 5 million attraction includes approximately $ 2.4 million in debt and $ 2.6 million in debt, the latter of which is financing its first loans before future attraction. The company’s speakers include Climate Capital, Common Sense Fund, KD Venture Partners, Keiki Capital, Portland Seed Fund and Susquehanna Foundation.