On the Catalyst with Shayle Kann podcast this week:
There’s a hole in the finance world. Fighting climate change means scaling up lots of new technologies, but financing those first-of-a-kind (FOAK) projects is incredibly difficult. New technologies involving things like sustainable aviation fuel, geothermal and direct air capture can take a decade or more to scale up. But venture capital is too expensive for FOAK projects, while infrastructure finance is too risk-averse.
So what solutions could solve the FOAK financing problem?
In this episode, Shayle talks to longtime climatetech investor David Yeh. He was most recently the managing director at the Canadian Imperial Bank of Commerce and served as a senior adviser on climatetech in the Obama administration.
They cover topics including:
Different approaches to financing FOAK technology: off-balance-sheet, structured finance, catalytic capital and government programs.
Examples of companies that solved the FOAK problem.
Code-switching between venture capitalists and infrastructure financiers (try using the word “innovative” with traditional bankers).
David’s checklist for FOAK entrepreneurs.
Bloomberg: Grant from Bill Gates–led fund will make green jet fuel as cheap as fossil fuels
CTVC: What the FOAK?
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