After securing $5 million in debt and equity financing, Enduring Planet is taking the wraps of its first product.
The company aims to deliver fast debt capital to startup and small businesses that focus on climate, such as by helping humanity adapt to the disastrous effects of burning fossil fuels.
Companies that bring in more than $25,000 per month can get revenue-based financing from Enduring Planet. In exchange, companies have to give up a chunk of their monthly revenue, as well as additional money off the top, and a 1% origination fee, until the loan is paid back. New Sun Road, which builds software for renewable microgrids, and Aquaoso, a climate risk data company, have been funded so far.
Revenue-based financing options, such as those from Uncapped and Stripe, use sales data to predict future revenue. This is what Enduring Planet does, casting its model as an alternative to venture dollars.
In the VC world, founders give some control of their business to venture capitalists and their limited partners, who are often entrenched in the fossil fuel industry. Businesses have large gross margins so they can weather the monthly payments, which is one of the requirements of Enduring Planet. The model is incompatible with startup companies with thin margins, such as electric vehicle firms, but there is some flexibility built in.
The $5 million raise includes pre-seed equity and debt, which is funding its first loans ahead of future raises. Climate Capital is one of the company's backers.
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