Tangible has raised £4M to transform climate hardware funding making sustainable technology affordable by offering financing to support climate hardware companies.
Tangible, a London-based fintech firm, closed £4M in funding from Future Positive Capital and other investors recently. The platform’s goal is to decouple the financing of climate hardware companies from the traditional listing and underwriting processes that take climate assets and transform them into ‘bankable’ investments.
Ensuring that Climate Hardware is Available to Institutional Investors:
Tangible’s platform focuses on transforming climate tech assets into forms that institutional investors recognize. In Faster, Founder and CEO William Godfrey considers that to achieve more you have to engage debt markets to scale sustainable innovations. Tangible addresses this concern by directing the necessary funds to valuable causes, helping meet the global net-zero targets set for 2050.
Simplification of Elaborated Financial Structures:
Tangible helps to raise structured, repeatable, and reportable solutions to firmly ground the largely elusive asset-backed financing within an initiative that hails a solution to the many complex climate finance deals. Documents and work-in-progress formats are standardized to shorten transaction times, thereby making financing quicker and repeatable structures a commonality across deals. As for reporting, it becomes automated, which in turn, leaves only deployment for companies to worry about.
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Supporting Both New and Scale Climate Solutions:
Thus, the Tangible Climate platform targets two categories of climate innovations: first-of-a-kind (FOAK) that have never been deployed before and scalable, non-FOAK technologies that have already been piloted. For FOAK projects, the platform tests the model in a ‘sandbox’ environment before implementation, allowing NOAK projects to use standardized tools for rapid deployment. This way it provides for the needs of both early-stage as well as more developed climate solutions effectively serving the climate tech ecosystem.
Unlike other loan products, Tangible also uses what the industry calls “bankruptcy-remote” structures to ensure assets against creditor losses in the event of a debtor’s failure, which is a significant aspect of creating the depth of climate finance. Such transparency and structure enhance the credibility and efficiency of investment continuity even under economic pressure.
Following the latest funding round, Tangible intends to enlarge its staff and roster of partners to chart a course toward making climate hardware funding more available. They promise that the creation of standard, effective financing processes will help the company achieve the discussed goals of global decarbonization and become a leader in the sphere of sustainable finance.
