"Like many startups, climate tech companies often face a " valley of death " that lies between early stage funding and growth capital that helps proven technologies reach commercial scale. But because climate tech startups are often hardware focused - physical problems tend to require physical solutions, after all - this valley of death tends to be a lot wider. Financing a first-of-a-kind power plant or factory can cost tens or hundreds of millions of dollars."
"Now, a new fund hopes to bridge this financing gap, also known as the "missing middle." Called the All Aboard Coalition, it aims to raise $300 million by October to help startups secure $100 million to $200 million rounds needed to build first-of-a-kind projects. All Aboard will write checks for equity or convertible equity, but it won't offer loans or back specific projects, a person familiar with the fund told TechCrunch."
Climate tech startups face a wider "valley of death" because hardware-focused solutions require expensive first-of-a-kind facilities, often costing tens or hundreds of millions. The All Aboard Coalition aims to raise $300 million by October to help startups secure $100–$200 million rounds needed to build inaugural projects. The fund will invest via equity or convertible equity and will not provide loans or back individual projects, positioning it as venture capital rather than project finance. The fund is led by Chris Anderson and includes participation from a broad group of climate and venture investors seeking to signal confidence in portfolio companies.
Read at TechCrunch
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