The $6 million fund will provide loans of $25,000 to $250,000 to an estimated 100 early-stage startups over five years, providing a non-dilutive alternative to venture capital for companies that need financing to support their first customer orders or working capital to scale their businesses.
LACI endeavours to help underrepresented founders – in particular, female, black and brown founders – overcome some of the institutional and historical barriers they face in accessing capital to grow their business. Unlike most traditional bank loans, the LACI Cleantech Debt Fund will not require founders personal collateral or their personal credit scores in underwriting.
“To help cleantech startups move at the speed and scale needed to meet the climate crisis, we created the LACI Cleantech Debt Fund as a new tool to give early stage cleantech founders a timely, affordable alternative to expensive venture capital and slow moving bank debt” said LACI CEO Matt Petersen. “LACI Cleantech Debt Fund will also help reduce barriers to capital for underserved founders from historically underrepresented communities–too many founders cannot access traditional bank financing as they lack adequate personal assets, or the personal networks needed to secure early stage investment.”
LACI is also partnering with a limited network of leading incubation organisations whose portfolio companies will be eligible to qualify for loans from the Cleantech Debt Fund.
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