Enduring Planet, a startup founded by Dimitry Gershenson, Erin Davis, and Joshua Krafchin, is helping climate tech and clean energy businesses bridge the cash-flow gap created by slow government grant payments. The company offers loans against government grants, as well as loans to companies with government contracts. They also provide CFO services on a part-time or fractional basis. Enduring Planet has raised $9 million to loan out to climate tech startups in amounts ranging from $100,000 to $500,000, with annual interest rates of up to 18.5% and limited additional fees.
The company works with a network of venture capitalists and helps connect its customers to investors for additional funding. Enduring Planet recently closed its own round of funding, raising nearly $4.9 million from investors, including Green Spark Ventures, ImpactAssets, and the Toniic impact investor network. The startup has 17 employees and has deployed $13 million in loans, with over 90% of the startups being led by underrepresented founders, having diverse teams, or serving marginalized communities with their products and services.
In addition to Enduring Planet, there are other groups providing financial services and support for early-stage climate tech startups, such as the Los Angeles Cleantech Incubator, Ezra, and Spring Lane Capital. Gershenson and Davis find working with passionate and committed entrepreneurs in the climate tech sector inspiring and hopeful for the prospects of combating global warming. They believe that the dedication of these entrepreneurs drives the success of the field, as many are not motivated solely by financial opportunities, but by a deep care for the environment.
Enduring Planet finds its loan customers through partnerships with startup accelerators, investors, and by tracking grant and contract awards to reach out to recipients. While the loans come at a price, the company secures them only against government grants and contracts, rather than requiring personal guarantees or asset liens. This approach makes Enduring Planet one of the cheapest providers on an all-in cost basis, according to Gershenson.
The startup’s mission is to ensure that climate entrepreneurs have the capital they need to be successful. By providing loans against government grants and contracts, Enduring Planet aims to support startups in the climate tech sector, particularly those led by underrepresented founders, with diverse teams, or serving marginalized communities. The company’s co-founders believe that the passion and commitment of these entrepreneurs will drive the success of the field and contribute to efforts to combat global warming.
