Raising Capital for Cleantech Businesses — Not 100% Straightforward
The merit of most of the business plans I receive is fairly obvious. Would-be entrepreneurs who expect investment capital for clean energy projects that are just ideas are unrealistic.
“Hey, here’s a country with a lot of wind. Let’s get investors to fund wind studies, feasibility studies …” It won’t happen. On the other hand, if you have the equity and development capital in place, and want project financing for a shovel-ready deal with a signed power purchase agreement, that’s not a problem.
Sounds simple, doesn’t it? In truth, this isn’t as crystal clear as I implied.
I just had a talk with an investor who turned down a deal in which my client needs capital to expand an existing business, with signed contracts to buy his product (eco-friendly paper) coming at him from all directions. We’re talking about capital to buy inventory that won’t stay on the shelves for 10 minutes.
“His customers love him. They’re standing in line to do business with him. He just needs working capital so he can take on more of them,” I explained. “What’s the matter with the deal?”
“Sorry, I’m not interested. His business is under-capitalized.”
I kid you not.
As a inventor I feel your clients pain as far as getting financing for a project.
Even with a rock solid business plans, and mathematics to back my claims up. I got the same reply. No money on hand because all of it is going out. Just won’t bring financiers to the table.
Just have to keep searching, and find someone who not only believes in the idea, but also will see how an idea will revolutionize the industry.
I am not talking about an idea either anymore I should say. I have proven that my idea will work.
Using 60,000 kW a day to create 24 MW a day.
Just have to keep looking for someone who has the renewable passion.
Kind Regards,
Andre’