A Ton of Non-Dilutive Financing.

While chasing capital for a new venture, a F-500 firm asked for a derivative slice of the venture's impact – the tons of carbon offsets created (CO2 reduction). The venture is not a cleantech firm. It does not pollute. It is a consumer financial service platform. Its business plan forecasts CO2 mitigation equivalent to San Francisco or Boston in four years. Not bad!

The interested firm wanted to claim the impact on climate change to help meet the firm’s own CO2 targets. Most large companies have pledged to reduce their impact under the Paris accords. But they often can’t meet those goals from their operations. And because the venture’s financial services focus is non-core to the firm, there was no appetite for an investment stake. So the firm proposed to pre-pay (even better!) for the rights to claim a share of the venture’s carbon offsets (and the associated green publicity).

Value…and non-dilutive financing lurks untapped in many corners! To paraphrase my grandfather, a civil engineer: “The solution to pollution may NOT be dilution”