David Bank

In this week's column: The math at the heart of venture capital is out of whack. Successful exits have become vanishingly few and far between. That’s because it’s been next to impossible for startups to go public, and the regulatory climate for extremely large mergers and acquisitions is generally unfavorable, too. Many venture funds so far have been betting on lower interest rates and better IPO conditions in 2025. But the outlook for lower rates is receding, especially given today's strong jobs report. For many funds, particularly those in the middle quartiles when it comes to assets under management or performance, it’s time to move on with life. To survive, let alone prosper, they need an alternative to the traditional venture capital math based on big-number investments, $1 billion-plus valuations and gargantuan exits. The good news is that current conditions have prevailed since the Fed began raising interest rates in 2022—long enough that a few funds have brought forth alternatives to holding their breath or trying to manifest something better. Touring Capital arrived in 2023 with just such a thought in mind: It has positioned itself as an early growth stage fund with a focus on unconventionally modest Series B rounds. Co-founder and General Partner Nagraj Kashyap knew that startups were staying private for longer, but even he was surprised when research showed IPOs could take 15 years, far too long for venture investors to tie up their capital. And he knew firsthand that billion dollar-plus exits via mergers and acquisitions are exceptionally difficult to achieve. Touring builds relationships with startup founders at an early stage and advises them to take a smaller round of capital than they would traditionally raise, especially at the Series B stage. They get less rocket fuel to underwrite rapid growth, but founders and initial investors’ stakes are also less diluted. That should allow them to ultimately sell their companies for more modest valuations and still make substantial returns on their investment of time and capital. “A larger fund will have to invest in a quantum that is very significant because they can’t do $5 million or $10 million at a time,” Kashyap said. “So they’ll invest between $75 [million] and $100 million. Then you see that that means for the full B round, it becomes $150 million and the dilution for the founder becomes significant. That’s basically the math that goes on, which sometimes artificially takes the pricing higher.” The total size of each B round involving Touring is $30 million to $40 million. But it’s important to see that venture capital, designed to capitalize on “broken” models and experiences in a wide range of markets, is beginning to train its sights on itself, where there’s a pressing need for greater liquidity. 

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Climate change is the story of our time. This is why our team of journalists has, with great intentionality, amplified coverage of sustainable solutions which benefit humanity. This November, 20 Israeli climate-tech companies are headed to the COP29 Azerbaijan Climate Conference in Baku, Azerbaijan. Handpicked by the Israel Innovation Authority רשות החדשנות and key government ministries, these companies span a broad range of sectors, each bringing innovative solutions to tackle the pressing climate crisis. With the COP29 conference rapidly approaching, these are the Israeli companies you should follow. Airovation Technologies CarbonBlue Rewind CI Sensing NGV MARINE EDGE Momentick BlueGreen Water Technologies EZPack Water Ltd. H2OLL Treetoscope SaliCrop Ltd Senecio Robotics Terra CQM TextRe Envomed Reep Technologies SolCold ANINA Culinary Art #startupnation #climatecrisis #tuesdaythoughts

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Excellent blog post on the realities of Climate & VC. While these are "tough times for the transition," there are also many opportunities. Significant capital will continue to flow, with Corporate VCs playing a larger role in financing this transition. Through this process, they will strengthen their LP positions in funds tackling climate challenges. I receive weekly calls from large Holding & Corporate VCs seeking introductions to Climate / Energy / Infra VC Funds. When I ask about their target sub-verticals within Climate / Energy, they often mention that they default to focusing on specific regions due to limited resources and coverage. In other words, rather than evaluating whether a DACH VC is better positioned for solar or grid-tech compared to a Nordic or US VC, they simply pursue whichever regions they can access—a haphazard approach at best. I always advise LPs to evaluate VCs within their operating market context. Since sourcing is crucial in venture capital, Holding Cos. and Family Offices should carefully assess a VC's location, regulatory context, and market environment before investing and building a portfolio of Funds. I've heard "I wish I had discovered this VC / region sooner" far too many times... * At ComposeVC's Built World Fund, we do not invest in Climatetech or Energytech directly, only as it relates to our Built World thesis.

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📣 CLIMATEBASE COHORT 6 processing loss… 📣 (San Francisco, CA) Chosen from a field of 4,000+ applicants, an ambitious collective of optimists, doers, creators, visionaries, disruptors, and explorers journeys through the Climatebase Fellowship, a 12-week educational program and career accelerator, covering Energy, Transportation, Food & Agriculture, Nature-Based Solutions, Carbon Removal, Corporate Sustainability, Built Environment, and Circular Economy -- topped off with a Capstone Project. 🌱 = = = 🗓 WEEK 10 – BUILDINGS, CITIES & ADAPTATION Disclaimer: It’s been a numbing week. Let’s extend ourselves a little *grace* if our hearts aren’t quite caught up with our heads.💕 Weeks ago America experienced hurricanes Helene and Milton. Last week: 1) Unprecedented flooding in Spain where 💚 Julian Moore of Climatebase shared that one year’s amount of rain fell in 24 hours! *Deaths: 200+* 2) Deadly typhoon Kong-Rey (largest in 30 years) hit Taiwan (relatives: safe!🙏). Grateful for our *RESILIENT* Fellows with shoutout to 💚 Caroline Wu: 📌 “I’d like to direct my [election] mourning towards action.” CURRICULUM: 💚 Matthias Muehlbauer (Co-Founder, OnePointFive (opf.degree)) is headed to COP29 Azerbaijan next week! - the Built Environment which includes concrete, steel, brick, aluminum (“aluminium” in Australian😉) - emissions from production *and* maintenance: HVAC (heating, ventilation, air conditioning) - Post-Hurricane Sandy, New York case study/important efforts in *ADAPTATION*: intriguing non-electric solutions to protect against subway flooding - 40% of the world’s population lives near water: possible Managed Retreat to move populations away from changing coastlines and rising waters - losses/damages that disproportionately affect the most vulnerable populations - 15-20 Minute Cities/Neighborhoods: urban planning where *daily needs* are met within 15-20m walk/bike ride, restricting high-polluting vehicles, creating community parks/gardens to improve the quality of life ➡️ People forget how climate personally affects them: *SUPPLY CHAIN* 🇪🇸 About Spain (our cautionary tale!): “It’s the political infrastructure that has failed us. It’s the media environment that has failed us… resulting in so much death & destruction. On top of all that is the shock. *Hopefully this will lead to reforms.*” ~JULIAN MOORE  (**See comments in this original post for 🔗 to related topics! ⬇️ ) = = = 🎉 CHEERS for more Cohort 6 Fellows in (4) images: 🌟 Adam Winston 🌟 Addy Spiller 🌟 Aune Michener 🌟 Benjamin E. Long, MBA 🌟 Chris Wingenroth 🌟 Dillman Delgado 🌟 Ece Özbaylı Halligan 🌟 Genevieve Gholizadeh 🌟 Georgia Lechlitner 🌟 Ignacio Franco 🌟 Meghna Varma 🌟 Mira Musank 🌟 Mohith Murlidhar 🌟 Sara Bermingham 🌟 Sarika Vora 🌟 Tovah Cook, Climate TBD podcast launch w/ Fellows 🙌 🗓 Reminder: April 19-27, 2025 is SF Climate Week (Year 3)! #ClimatebaseFellowship #ESG #ClimatebaseCohort6 #Climatebase6ers #ThankfulThursday

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Today on ImpactAlpha, Jessica Pothering is talking to six women-led funds that are working to grow and commercialize climate tech solutions. These fund managers are stepping into critical gaps in growth-stage financing, pushing climate solutions from proof of concept to real-world impact. The article highlights how a gender lens is not only creating more inclusive investment portfolios but also accelerating innovation in the climate tech space. It's #ClimateWeek in New York this week, and tomorrow, Heading for Change is teaming up with ImpactAlpha and UBS to show how investors are integrating gender and broader systems-level levers into their investment strategies to help them spot new market opportunities, accelerate their impact, and facilitate a just transition. I'll be running around Manhattan all week, learning from the incredible people and organizations who are working to make the case for the capital we need to tackle the climate crisis. If you see me, let’s connect - I'd love to talk about how we can more effectively make the case for urgent and intentional climate action. #ClimateWeekNYC #GenderLensInvesting #ClimateTech #ImpactInvesting #SustainableFinance

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Is SF Climate Week banter a good barometer of the macro climate tech investment mood? Key nuggets to ponder: 💰💰💰 Climate solutions (like most science/engineering and hardware based deep tech) are capital intensive. They require an "all of the above", creative financing approach to obtain the capital needed to scale (from CVCs, government, public-private partnerships, green banks, debt financing...). 🤖 AI - Everything, Everywhere (all at once). As in most sectors, AI is white hot. It can be a key component of climate solutions, but also a demand accelerant ⏩ More AI = ↗ compute and power demand ⚡= ↗ need for energy storage and grid enhancing solutions 🔋. 🏛 🤵 Political Angst. Real worry that a new administration will cut or impede climate tech catalyzing funding (e.g., DOE funding from IRA). #climatetech #climateweek

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Echoing Green announces the launch of the Signal Fund, a financial tool that provides capital to social innovators at critical growth stages. Signal launches with $15.6 million raised and prioritizes founders with overlooked potential for scalable social impact. Signal Fund aims to test a new set of financial mechanisms and model more broadly accessible investment vehicles that can help fuel transformational social change and innovation globally. It will disrupt the current funding landscape that is misaligned with the needs of social innovators. “In the current economic climate, fundraising for entrepreneurs has become increasingly difficult,” said Echoing Green President, Cheryl L. Dorsey. “Through Signal Fund, we are strengthening and de-risking a new pipeline of social innovators — ones that we believe will expand the set of leaders who are too often overlooked by mainstream philanthropy and financial institutions. This fund can help proven social innovators move past the proverbial valley of death that so many start-ups face, achieving organizational milestones recognizable to traditional investors without compromising impact.” #YesWeInnovate https://lnkd.in/dgfjDqAd

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Today we released our 2024 Hive Fund annual impact report. It is a visually stunning summary of incredibly inspiring progress toward climate justice across the US South. I really hope you can take a look! Five years ago, Melanie Allen and I started the Hive Fund to do philanthropy in a more collaborative way. Now, after moving more than $80 million to more than 150 organizations across the US South, most of which are led by women of color, we have confirmed that :   --Climate solutions that center racial, gender, and economic justice work better, move faster, and are more durable.   --A feminist approach to grantmaking that creates space for women leaders to lead authentically unlocks exponential power.  --Multiyear general support that is renewed allows groups to flex for maximum short-term impact while also working toward long-term progress.  The next five years present an unprecedented opportunity to build on the momentum we’ve collectively created to fundamentally transform our energy systems in ways that spread economic and environmental benefits to communities who have long borne the brunt of dirty energy’s pollution and corruption. We are overflowing with gratitude for the collective “hive” we’re built together with our advisors, grantee partners, funders, staff, and so many other allies and supporters. This impact report highlights some of the sweet successes you have all been part of achieving.  We hope you savor them and that they nourish you for even more ambitious and audacious action to come! This was a huge team effort, but I especially want to thank our communications director, Julian Foley, for a phenomenal job on pulling this report together! https://lnkd.in/gnGNWEzK

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I spoke with Jade Sasser about her new book, “Climate Anxiety and the Kid Question,” which explores the complex intersection of climate change and reproductive decisions. We discussed the importance of diversifying the conversation around climate emotions, understanding climate anxiety as a collective experience, the challenges faced by climate-concerned parents, and cultural pressures around having children. Sasser emphasizes the power of inclusive dialogue and emotional resilience as we navigate this uncertain future together. Her insights provide much-needed perspective on one of the most profound questions of our time. Read our full interview through the link in comments. #ClimateAnxiety #ReproductiveJustice #HopeInAction

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This is a good and important read on #FOAK projects and the ClimateTech Valley of Death, with good insight from some very sharp investors. One often overlooks aspect of this challenge is WHO will build these early commercial projects that are smaller and don't often appeal to top tier EPCs. Developing and building these projects will be a critical, often binary factor in the outcomes. https://lnkd.in/gbedmkmt

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A mature and nuanced reflection by a co-founder of the Sunrise Movement, an influential youth climate advocacy group that wants Joe Biden to step down, on the coming election. What I appreciate most about the piece is its grappling with the uncertainty of the moment. Something I think about: What will climate-policy advocates do if Donald Trump wins? The conventional wisdom is they’ll dig in, through America’s various institutional channels, and hold on, much as they did through Trump’s first term. But Trump is such an unusual figure in American politics — someone who demanded the overturning of a legitimate election; someone who casually discussed “the termination of all rules, regulations and articles, even those found in the Constitution”; someone well aware that SCOTUS has recently expanded the executive's power to commit crimes — that, I think, we have to consider the possibility the political environment will look like nothing we’ve ever seen before. To say nothing of the social environment which, we’ve seen historically, can (can, not must) undergo extreme change when influenced by authoritarian figures. I haven’t really seen any reckoning with this in environmental policy circles, or in the environmental media circles in which I roam. I suppose the obvious reason is we have no idea. I maintain that the line of questioning is valid. What does climate policymaking look like in Putin’s Russia, do they have ratepayer hearings and do Environmental Impact Statements? What happens if Trump dissolves, say, the CFTC? The types of questions we may be asking in January 2025. https://lnkd.in/d354gVZA

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NEW: "Overheard at SOCAP: Progress and possibilities for climate action and inclusive prosperity" Fear and uncertainty and anxiety is giving way to determination, affirmation and new possibilities. A year ago, investors and founders were on the defensive in the face of legal and political attacks on ESG and DEI. At this year’s SOCAP gathering in San Francisco last week, Agents of Impact were singing a new tune: Investing for inclusion, equity and diversity is essential for long-term performance. “This is about fiduciary duty,” said CapEQ’s Tynesia Boyea-Robinson , who co-founded Freedom Economy with Adasina’s Rachel J. Robasciotti to defend the rights of justice and sustainability investors. “We’re not pushing back. We’re not just fighting back. We are standing 10 toes down on what makes good financial sense.” Progress on climate and inclusive prosperity sparked the attacks in the first place. Moving forward confidently despite the headwinds became a theme of the conference, especially ahead of a consequential US election. “If we take three steps forward and we take a step or two back, we can’t think that we’re back where we started,” Activest’s Micah Gilmer said following the screening of 'Ownership and Equity,' ImpactAlpha’s documentary on napoleon wallace and his network of organizations in North Carolina that together form a multi-front strategy for Black wealth-building and multi-racial prosperity. h/t Shaylon Scott, Antony Bugg-Levine, Greg Neichin, J. W. Carpenter, LAURA ORTIZ MONTEMAYOR, David Bank, Amy Cortese Full dispatch up on ImpactAlpha: https://lnkd.in/g3vKC-3q

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The Week in impact investing: Coalition of the serious 🗣 Plot preview. Some of his early personnel choices make it seem like President-elect Donald Trump is casting a new Netflix series rather than staffing a government. What roles will Agents of Impact play in the dramatic new season? On our Call on Monday, “New realities, new narratives,” we’ll preview plotlines that already are taking shape (RSVP now). https://lnkd.in/gEukfaAp Impact investing champion Antony Bugg-Levine will make the case for “investing in America.” Freedom Economy’s Rachel J. Robasciotti will connect the pursuit of a strong economy for all with the legal defense of justice and sustainability investors. And Partners in Equity’s Wilson Lester will lay out “the North Carolina model” for broad-based ownership and equitable wealth building. Contributing editor Imogen Rose-Smith didn’t mince words in her latest Institutional Impact column. From resistance to rapprochement, we don’t have to agree on a single strategy. Let me know if you have a crisp call to action and we’ll add you to the lineup. Meanwhile, the work continues. Private equity investors are shoring up their portfolio companies to maintain the momentum of the energy transition despite political headwinds, as ImpactAlpha’s Snehal Shah reported from this week’s SuperReturn conference in New York. In the face of a likely US retreat, Brazil, China and even Azerbaijan are claiming climate leadership, Amy Cortese writes in her roundup on COP29. I spoke with Heading for Change’s Sana Kapadia on the crucial role for women’s leadership at “the finance COP.” From Baku, The Lightsmith Group’s Jay Koh told Amy he’s seeing the emergence of “a coalition of the serious." “If you’re serious about this problem, then let’s get together and make something really happen now,” he said. “And I think the serious folks are going to do that, no matter what.” In Africa, philanthropists and even pension funds are building a pipeline of local capital for sustainable economic growth and resilience, Lucy Ngige reports. Back in the US, nonprofit hospitals are finding ways to invest in “social determinants of health,” like housing, food and neighborhood safety, contributor Ibrahim Rashid, MPP explains in a guest post. From tangible improvements in working class livelihoods to taking on the industrial food complex, opportunities for progress remain. There are all kinds of people still in the fight, and there’s all kinds of work to be done, I told host Brian Walsh on this week’s Impact Briefing podcast. Maybe we can play a little role in keeping folks talking to each other. https://lnkd.in/g22ZNi6y #impinv #sustainability #climate #adaptation #employeeownership #equity #climate #energytransition #COP29 #gender

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Check out my recent post on why President Trump is the forcing function for us to solve the “Missing Middle” and catch the industrial Tsunami of onshoring coming to the US!

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As climate startups continue to grow and scale, understanding the cost of borrowing is crucial for making informed financial decisions.  We’ve talked with a lot of founders struggle with this, so we figured we’d share what we’re seeing: What are typical interest rates for climate businesses? - Venture Debt: APRs typically range from 9% to 15%+ (given a Prime rate of 8%), with banks like Silicon Valley Bank landing at the bottom of this range.  Venture Debt is generally senior secured, and also comes with warrants and covenants. - Bank Debt: APRs can vary widely, but you might expect rates between 8% and 14% for senior secured, personally-guaranteed loans to cash-flowing businesses. - SBA Loans: APRs vary by transaction size, typically around 11% to 14% (given a Prime rate of 8%).  These are generally senior secured and personally guaranteed. - Alternative Lenders: These lenders often offer faster approval times and less stringent requirements, but they typically charge higher interest rates. For example, OnDeck currently offers APRs as high as 27%. - Enduring Planet: for companies with government receivables, EP offers advances at 15-17.5% APR with limited collateral, no personal guarantees, no dilution, and no complex covenants. Common loan terms and their impact on pricing: - Collateral: This is an asset that a lender can seize if a borrower defaults on a loan; secured loans have collateral. The more valuable the collateral, the lower the interest rate.  For reference, most commercial banks will require an all-assets lien on the business to lend. - Personal guarantees: These are promises by business owners to repay a loan personally if the business defaults. Personal guarantees can often lead to lower interest rates but put the founders at risk if things go wrong. - Loan term: The length of time over which a loan must be repaid. Longer terms generally result in higher interest rates. - Repayment schedule- The frequency of repayment will impact the cost of capital, with some lenders requiring monthly, weekly, or even daily repayment terms, while others tie repayment to some future outcome (a receivable, a fundraise, etc). How do these factors impact pricing? A combination of these factors will influence the overall cost of borrowing. For example, a well-established climate business with strong financials and substantial collateral will be able to secure a loan with a much lower interest rate than a startup in their first few months of operations. Are you seeing anything different in the market?  Please share your thoughts below!

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We spend a lot of time talking about how to cover climate change, but the fact is it's here. Instead of projections, local news orgs are deep into trials by fire, innovating as they go to keep their communities safe, informed and connected. It's ironic and wildly impressive that In the midst of AI hand-wringing and viral disinformation campaigns, innovation right now means going back to the basics in areas completely cut off by Helene's devastation. How are they doing it? Here's an initial short list, via an American Press Institute round-up, and other posts trickling in. If you have more, please feel free to add them in the comments -- I know I'm not the only person thinking a huge focus for support is equipping media for this new normal. -From CNN's Brian Stelter: Local radio stations have been a lifeline for residents, sharing updates on road closures, providing verified information on relief efforts and opening up the phone lines to answer questions and help connect people. -Daniel Williams and the folks at NC Local News Workshop helped developed a text-only, lite version of Blue Ridge Public Radio (BPR) built on Newspack that was rapidly deployed to get critical information into the hands of folks in Western North Carolina struggling with weak cell service. There are no ads or images so it loads fast. It also includes resources with links for services and other critical community resources. https://text.bpr.org/ -From Jeremy Markovich on North Carolina Rabbit Hole: In Black Mountain, town leaders gathered in person in the Town Square to share information about the status of the utilities and other necessities. Residents learned about the meeting from posters, and outlets have used whiteboards placed around town.   -The Asheville Citizen-Times launched a text message service to help to answer questions directly about news and local services. (This is part of a larger trend towards text messaging as an audience tool, Charlotte Tobitt wrote in Press Gazette, noting that SubText will send roughly five billion text messages this year.)  🙏 to the journalists out there doing the work.

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🌬️The air we breathe. 🔥The heat we feel. 🌪️The storms we weather. 📣 CLIMATEBASE COHORT 6! 📣 (San Francisco, CA) Chosen from a field of 4,000+ applicants, an ambitious collective of optimists, doers, creators, visionaries, disruptors, and explorers journeys through the Climatebase Fellowship, a 12-week educational program and career accelerator, covering Energy, Transportation, Food & Agriculture, Nature-Based Solutions, Corporate Sustainability, Carbon Removal, Circular Economy, Buildings, Cities & Adaptation, and topped off with a Capstone Project. 🌱 = = = 🗓 WEEK 8 – CARBON REMOVAL Carbon is the hot topic in the Climate space, i.e. reducing / removing carbon emissions from our atmosphere. Emissions include carbon dioxide (CO2) and methane (CH4) as byproduct of burning fossil fuels, manufacturing, livestock production, et al. (See CBS News 🔗 in comments.) SOOO much to learn!! Our gratitude to amazing: 💚 Neil Yeoh (CEO/co-founder, OnePointFive (opf.degree)), sharing a spectrum of Carbon Dioxide Removal (CDR) solutions from Nature-based to fully Engineered. As he says, "If you can’t *measure* it, you can’t *reduce* it!" Also great to learn of corporate stalling tactics and loopholes. 💚 Robert Hess (Cohort 5 Fellow), firefighter with controlled burn experience, who hosted… 💚 Dr. DON HANKINS (California State University, Chico) Prof. of Geography & Environmental Studies, who championed the wisdom of Indigenous Stewardship Network. Powerful insertion of *Community* beyond known terms of biodiversity, emissions, and carbon. 💚 Annalise Downey (Head of Climate Consulting Sylvera) whose childhood love of oceans & water, fueled by curiosity, led to research and carbon markets. Humorous example (citing THE DEVIL WEARS PRADA) of what Article 6 means in the context of COP (Conference of the Parties). = = = 📌Neil's *Hot Takes*: “...the best way to keep carbon dioxide out of the atmosphere is not putting it there in the first place. We cannot use technology as an insurance plan to the damages that we’re doing today.” ~Prof. Howard Herzog (Sr Research Engineer, Massachusetts Institute of Technology) “Technology has a place to play within the portfolio [of solutions]… Nature is our top line of defense but we need every single solution across the portfolio to meet our net zero decarbonization goals.” ~NEIL YEOH  (**See comments in this original post for 🔗! ⬇️ ) = = = Celebrating our next set of Cohort 6 eco-warriors in (4) images: 🌟 Alberto Vargas 🌟 Alejandro Carrillo Teniente 🌟 Andrea Campos Rubio 🌟 Andy Promisel 🌟 Annah R. 🌟 Anne Walker 🌟 Barbara Milewski 🌟 Daisy Qin Rui Z. 🌟 Dorene Wharton 🌟 Elsa Higby 🌟 Hilda A-Amenyo, MBA, MSc, PMP 🌟 Immaculate M. Nabuggwawo Kasendwa ACIArb, AISU 🌟 Juana Solano Mesa 🌟 Maria Bujor 🌟 Marwan M. JAJU 🌟 Zachary Rogers 🗓 Reminder: Put April 19-27, 2025 on your calendars for SF Climate Week (Year 3)! #ClimatebaseFellowship #ESG #ClimatebaseCohort6 #Climatebase6ers #ThankfulThursday

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A SAFE and convertible note had a baby and Wilson Sonsini Goodrich & Rosati was the midwife- out popped the D-SAFE! 👶🏽🎉 A new #climatetech funding instrument was announced by Elemental Excelerator last week. One of the company’s main goals is to support smaller, up and coming companies during the awkward “Scale Gap” phase between #VC funding and natural growth. It’s called the #DSAFE (Development Simple Agreement for Future Equity) and it aims to aid the process by giving companies a small amount of cash to overcome initial risks and expenses during the developmental stages of a product launch or company. How does it work? D-SAFE has a redemption clause meaning companies can choose to have their payments offered as a loan or convert to equity at the investor’s discretion. Funders and companies will have clear communication and expectations about where the money is going and how it will be applied to either the company or the projects at hand. Financiers and companies will work together with more #transparency, and that’s a great boon for #startups and VC alike. As of this month, Elemental has already invested using D-SAFE in eight different companies, including Dimensional Energy and Origen — both companies investing in innovative and out-of-the-box solutions to environmental issues! Seems like a win-win on the surface. What do you all think about the D-SAFE? Alfredo Coppola Momoka Ueda Tim Wagner Stephen D. Torres Olya Irzak Natsuho Toyama Noriya Tarutani Shin Ogawa

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