Enduring Planet: Bridging the Cash-Flow Gap for Climate Tech Startups
Image Credits: Enduring Planet
In the fast-evolving world of climate tech, securing timely funding is crucial for startups looking to make a significant impact. Government grants and publicly funded projects have provided a lifeline for many, but the slow disbursement of these funds often creates cash-flow challenges. Enter Enduring Planet, a Pacific Northwest-based fintech startup, which is stepping in to bridge this gap.
Founded in 2021, the startup offers loans against grants and public contracts, serving the immediate financial needs of climate technology companies. The company also offers part-time or fractional CFO services, further supporting startups in efficiently managing their finances. "Our core mission is to ensure that climate entrepreneurs have the capital they need to succeed," said Dimitry Gershenson, co-founder and CEO of the Portland, Oregon-based startup.
With $9 million raised to date, they provide loans ranging from $100,000 to $500,000. Backers include Green Spark Ventures, ImpactAssets, impact investor network Toniic and clients of Figure 8 Investment Strategies. Despite an annual interest rate of up to 18.5%, the startup's loans are considered competitive due to limited additional fees, such as a 1.5% origination fee. "We are one of the cheapest providers when all fees are taken into account," notes Gershenson. Unlike other lenders that may require personal guarantees or liens on assets, Enduring Planet secures loans only with grants and government contracts.
Not only do they provide financial support, but they also connect their clients with a network of venture capitalists, which facilitates other funding opportunities. "We're unclogging the climate finance ecosystem where we see these inefficiencies," says Erin Davis, co-founder and chief operating officer, based in Washington, D.C.
The company's third co-founder and chief technology officer, Joshua Krafchin, is based in Oakland, Calif. Together, the team of 17 employees works to identify loan customers through partnerships with startup accelerators and by tracking grant and contract awards. While Enduring Planet has raised $9 million for loans, it has successfully deployed $13 million, thanks to the returns on its investments. Impressively, over 90% of the startups receiving loans are led by underrepresented founders, have diverse teams, or serve marginalized communities.
Enduring Planet’s recent funding round brought in nearly $4.9 million from investors, including K Street Capital, Avesta Fund, Cerulean Ventures, Resolute Ventures, Dangerous Ventures, Portland Seed Fund, and E8 Angels. The company's commitment to supporting passionate, mission-driven entrepreneurs is evident. "Most of the people building in this space are not in it just because there’s a financial opportunity," Gershenson said. "They stick to it because they care so deeply."
