Why Toniic members invested in Enduring Planet Fund 2
Whether they are focused on mitigation, carbon removal, or adaptation/resilience, climate tech startups are often focused on the bleeding edge of technological innovation, and many of them require significant R&D before they are able to truly go to market. This may come in the form of sophisticated sensing technology (Impossible Sensing), complicated filtration systems (Polygone), airborne wind energy (Windlift), or any number of other potential innovations.
These firms frequently rely on government grants and/or contracts to develop and commercialize these innovative technologies. However, government awards and contracts are often structured as a reimbursement model. Rather than transferring the funds up front, the government pays out according to expenses incurred, on a milestone basis, or upon delivery, which creates significant cash flow problems for innovative climate tech companies.
Enduring Planet
Since their launch in 2022, Enduring Planet has issued ~$13M in loans to over 30 borrowers and over 90% of the recipients meet at least 1 of 3 DEIJ priority criteria
To solve this problem, Enduring Planet provides fast, flexible, and founder-friendly working capital financing to climate entrepreneurs, primarily focused on government grant and government PO financing.
The company has developed a tech enabled and automated underwriting process to support speed, simplicity, and scalability. At the time of loan consideration, potential customers connect their bank account and accounting systems to the Enduring Planet proprietary financial analysis software which performs automated analysis on their financial status. This connection remains throughout the lifetime of the loan ensuring automated collections when payments are received from the grant/procuring agency.
Enduring Planet provides financing across the climate tech ecosystem, and also prioritizes lending to underrepresented founders, diverse teams, and companies serving marginalized communities. To date, since their launch in 2022, the company has issued ~$13M in loans to over 30 borrowers, primarily through Enduring Climate Fund 1. Over 90% of the recipients meet at least 1 of 3 DEIJ priority criteria.
Grant advance loans transaction examples
Being able to access grant funding upfront was a game-changer in regards to operating the company.
As part of their pilot fund, the Enduring Planet team offered a range of flexible loan products to climate startups, including grant advance loans. Enduring Climate’s grant advance loans provide capital quickly with repayment tied to when the company gets the inflow from the government.
Safire — Patented Li-ion advanced battery safety technology
Safire enhances safety and reliability in Lithium-ion (Li-ion) battery-powered systems, such as in Electric Vehicles (EVs) and Electric Aircraft. Their technology addresses the critical issue of battery fires and thermal runaway that pose risks to human lives and valuable hardware.
Safire has been awarded $2.5M of non-dilutive funding from the US Air Force. The funding consists of two Direct to Phase II SBIR contracts where Safire Group is actively working on building prototypes for the Department of Defense.
Enduring Planet’s Grant Advance enables Safire to purchase critical equipment to more rapidly scale product development, and avoid raising a dilutive round in a difficult financial climate.
Dollaride — Mobility platform for clean transportation in NYC
Dollaride is a mobility platform that helps shuttle-van fleet owners grow their businesses and transition to clean energy. Dollaride currently brings value to 15,000+ commuters in NYC (and growing). Today, Dollaride offers a suite of digital tools that these small businesses use to operate fixed-routes, manage vehicle fleets, process payments, and report on performance.
Dollaride partnered with Enduring Planet to secure bridge financing to a $10M grant-funded project in NYC. Being able to access grant funding upfront was a game-changer in regards to operating the company. Enduring Planet’s grant advance product Dollaride to turn grant-funded contracts into working capital. Ultimately, the grant advance enables Dollaride to start the project 3–4 months early before the first payment arrived without raising more dilutive venture capital.
Sparkz — re-engineering the battery supply chain
Sparkz is a leading battery startup re-engineering the battery supply chain from the ground up to eliminate the use of conflict minerals like Cobalt and Nickel and establish manufacturing of lithium batteries in the US.
In November 2023, Sparkz won a $11.2M CalCompetes Grant to establish a manufacturing facility in California. Sparkz thus needed a lending partner that could move at the pace of a start-up. Enduring Planet Grant advance enabled the company to secure the capital needed for strategic manufacturing purchases to achieve delivery deadlines to its customers.
Enduring Planet Fund 2
Grant advance loans will be the flagship product for Enduring Climate Fund 2. Enduring Planet is raising $40M and the firm announced a first close last month, with participation from ImpactAssets, clients of Figure 8 Investment Strategies and several investors of the Toniic community.
Fund II will make grant advance loans between $100,000 and $1 million, typically spanning 6 to 18 months. They are particularly looking to extend loans to underrepresented founders (BIPOC, women, etc.), diverse teams, and companies serving marginalized communities.
Enduring Planet and Toniic
8 Toniic members invested in Enduring Planet Fund 1 and at least 7 Toniic members have taken part in Enduring Climate Fund 2's first close.
Enduring Planet was introduced to the Toniic community for their Fund 1 in 2022. Two Toniic members who are equity investors in the company were keen to share the fund opportunity with fellow investors of the Toniic network.
As many as 8 Toniic members invested in Enduring Planet Fund 1, making it one of Toniic’s Fund Program’s top success stories of 2022.
Naturally, Toniic was very happy to continue our collaboration with the Enduring Planet team and feature their second fund in our programming earlier this year.
Interest from Toniic members continues to be high and at least 7 Toniic members have taken part in Enduring Climate Fund 2's first close.
Toniic member Naomi G. said:
“I think Enduring Planet Fund 2 has a very unique proposition in the debt impact space, with a clear focus on lending to climate startups. They take down the risk by focusing on startups that have received a grant from governmental bodies and need bridge finance because those institutions take time before they actually distribute the grant. We like the team and think Erin and Dimitry form great leadership.”
Toniic member Green Spark Ventures added:
“We’re always interested in putting the right type of capital to work to help accelerate the clean energy revolution. In this case, Green Spark invested capital from their family foundation to help companies that Enduring Planet has identified and vetted to scale more quickly and develop the products and services we are going to need to address the climate crisis”
In addition to completing a first close for Fund 2, Enduring Planet also completed first close for their $3.3M seed round. Investors include K Street Capital, Avesta Capital, Resolute Ventures, Dangerous Ventures, Portland Seed Fund, and E8 Angels as well as a few Toniic members such as Cerulean Ventures and Viridian Works.
Matthew Stotts, Cerulean Ventures:
“At Cerulean Ventures we have found that some of the most necessary investments to fight climate change are financial technology products and services. We sought out and invested in Enduring Planet for their demonstrated technical and operational advantage in building the top platform of financial services to accelerate climate impact and support climate-positive businesses and innovations.”
Toniic member Viridian Works which invested in the seed round, Fund 1 and Fund 2 shared:
“We’re glad to be investing with the Enduring Planet team who have a strong mission driven focus on contributing to climate solutions and who combine entrepreneurial sensibility with the financial diligence appropriate for making loans. With Enduring Climate Fund 2 they identify and address a funding gap for companies whose technology and purpose have been validated by the award of grants and who need working capital to deliver on those projects.”
About Toniic:
Toniic is a global community of private asset owners seeking to steward wealth and use influence to enable a thriving world. Our members — more than 500 high net-wealth individuals, family offices and foundations from more than 25 countries — are active impact investors and philanthropists, for whom Toniic provides education, investment opportunities, impact support, events, and community. Toniic also seeks to build the field of deep impact investing, moving money and mindsets and leading by example.
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