Fintech company Enduring Planet has closed its second fund at more than $12 million, more than doubling the size of its first fund as it expands financing support for early-stage climate startups (03/06).

The company, which was launched in 2021, provides loans to climate-focused startups, particularly businesses that have received government grants and contracts. It also offers part-time chief financial officer services.

Second Fund More Than Doubles Initial Investment Pool

The new fund marks a significant increase from Enduring Planet’s first fund.

“We’re really proud of this outcome, despite the challenging market environment that climate tech is facing in the US,” said co-founder and Chief Executive Officer Dimitry Gershenson.

Gershenson is based in Portland, Oregon, where the company maintains its roots in the Pacific Northwest.

Nearly $40 Million Distributed to Climate Startups

Since its launch, Enduring Planet has provided nearly $40 million in loans to more than 70 climate startups and other businesses.

Companies that have received funding include Aquagga, based in Tacoma, Washington, and Photon Marine, headquartered in Portland.

The company offers financing ranging from $100,000 to $2 million.

Loan-Based Financing Model Supports Startup Growth

Unlike venture capital firms, Enduring Planet does not take equity stakes in the startups it supports.

Its financing carries annual interest rates of up to 15% to 17%. Additional charges are limited to a 1.5% origination fee.

The new fund comes as the climate technology sector faces a difficult investment environment in the United States.

According to the source article, government support for climate initiatives has become less broad, less predictable, and less supportive of early-stage ventures under the Trump administration.

Sightline Climate reported that around $90 billion remains available from climate investors. However, the capital is being deployed faster than new funds are being raised.

The report also noted that investors are moving away from riskier early-stage startups and focusing more on established companies and infrastructure projects.

Fund Backed by Multiple Investors and Foundations

The fund received support from Blue Haven Initiative, Cisco Foundation, ImpactAssets, DF Impact Capital, Green Spark Ventures, Montcalm TCR, SK2 Fund, The Arthur B. Schultz Foundation, Rebecca Buyers and Nils Johnson, Viridian Works, Brighter Investing, clients of Figure 8 Investment Strategies, 1994 LLC, and Realize Impact, with support from The Schmidt Family Foundation, among others.

PHOTO: CLIMATECAP

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