When Silicon Valley Bank went bust, Enduring Planet was one of the organizations that rushed in to fill the breach for climate tech clients that were left in the lurch. The Portland, Or.-based lender since 2021 has made flexible, non-dilutive bridge loans to small climate tech companies to tide them over while they wait for government grants, commercial payments and unforeseen delays.
Now, as the firm looks to raise its second fund in a challenging capital-raising environment, it is receiving a helping hand from Locus. The nonprofit is extending a guarantee from its Community Investment Guarantee Pool that will cover 10% of any investor losses on up to $20 million of Enduring Planet’s Climate Fund II.
“The guarantee plays a critical role in derisking and enhancing the capital structure of Climate Fund II, especially during this volatile economy,” Enduring Planet’s Erin Davis tells ImpactAlpha.
Unlocking capital
Enduring Planet has made nearly $25 million in loans to climate tech firms working in areas such as clean transportation, renewable energy, and the circular economy. Its loans range from $100,000 and $1 million, with interest rates of 15% to 19%. The firm does not require personal guarantees or stock warrants, like some lenders catering to startups.
Last May, Enduring Planet reached a first close of $4.1 million on its second fund, which aims to raise $20 million to $40 million. Early investors include Greenspark Ventures, DAFs managed by ImpactAssets, members of Toniic, and clients of Figure 8 Investment Strategies.
“Enduring Planet exists to make sure that all climate entrepreneurs have access to the capital they need to address the climate crisis,” says the firm’s Dimitry Gershenson.
Since it was launched in 2020 by 10 philanthropic organizations, the Community Investment Guarantee Pool, managed by Locus, has issued more than $40 million in guarantees to date, unlocking some $307 million for community projects. The partnership with Enduring Planet, said Locus’ Jim Baek, “is a prime example of how guarantees can strengthen investment ecosystems and drive capital towards urgent needs like the Climate Crisis.”
