How can we finance the myriad startups and small business transitions that will bring the sustainable economy to full flower? Our guest, Dimitry Gershenson, co-founder and CEO of Enduring Planet, argues that the climate crisis has made the human and business response inevitable. Enduring Planet was launched to provide non-dilutive financing — in the form of unsecured loans — to climate mitigation companies that help reduce emissions, carbon removal startups that capture CO2 from the atmosphere, and firms that provide climate adaptation and resilience services that will be needed in response to climate change.
Dimitry shares the key trends in the market driving new financing and how his team selects companies based on similar criteria as a venture capital firm without taking stock, providing loans based on the borrowers’ cash flow. Enduring Planet also seeks out diverse and inclusive companies and organizations delivering goods and services in marginalized communities.
Dimitry explains why Enduring Planet invested in Compost Colorado and AQUAOSO, an agricultural data company, as examples of recent deals. Interest in investing for sustainability has soared in recent years. Bloomberg reports that in 2021 more than $1.6 trillion of debt financing went to corporate and infrastructure transitions to renewable, low-carbon, and low-impact business approaches. That brings the total invested in sustainable paths to more than $4 trillion, or about 4.2% of the value of the world’s economy last year.
Tune in to get a sense of the financing activity at the grassroots of the sustainable economy and be introduced to debt financing for sustainability-focused startups. You can learn more about Enduring Planet at enduringplanet.com.
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This podcast originally aired on September 28, 2022.