Financing first-of-a-kind climate assets

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. David has spent over 20 years in climatetech, including in roles at the Obama White House, Generation Investment Management, and the World Bank.

They cover topics like:

• Different approaches to FOAK, like 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.

Recommended Resources:

• 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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