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This platform makes it easier for asset-heavy climate startups to secure funding
Spotted: Deploying climate technology at scale is crucial to achieving global net-zero goals, but financing such projects remains a challenge. McKinsey estimates that meeting net-zero targets by 2050 will require $9.2 trillion annually in investments for physical assets – far exceeding current funding levels. Addressing this issue is a London-based startup, Tangible, which aims to help climate hardware companies span the so-called ‘valley of death’ to access debt markets critical for scaling their operations.
The platform provides a one-stop solution for structuring and managing debt deals, an area traditionally fraught with complexity. Companies can use it to model deal terms, assess risks, and connect with potential lenders, including 28 banks and a growing network of private debt providers. As CEO Will Godfrey explained to Springwise, “Our platform combines collaborative deal structuring, statistical modelling, automated reporting, AI document reading, and sophisticated risk assessment – particularly for new asset classes like batteries where traditional lenders struggle with valuations.”
What distinguishes Tangible’s approach is its focus on automation and integration. For example, the platform uses AI to streamline the reporting process. This is vital for companies leveraging Special Purpose Vehicles (SPVs) to secure debt without risking their parent company’s balance sheet. The platform’s design is especially beneficial for emerging asset classes like batteries, where traditional lenders often struggle to navigate risks and valuations.
The innovation is timely. As interest rates drop, more funds are “yield hunting,” and debt vehicles are gaining traction in climate tech. High-profile examples like Northvolt and H2 Green Steel have already secured billions in debt financing (with varying degrees of following success). However, the landscape is not without challenges. Instances of underperformance by major players like Northvolt raise concerns about risk, making tools that increase transparency and confidence, such as this platform, even more critical.
Currently, the platform is operational and expanding its capabilities to support a broader range of assets, including heat pumps, solar installations, and mobility solutions. The startup’s recent funding round of £4 million – backed by Future Positive Capital, Hardware Club VC, and others – underscores investor confidence in its potential to bridge the climate finance gap.
Written By: Oscar Williams