Speakers at the ConNEX Workshop: Securing Working Capital & Advanced Financial Planning
On July 25, 2024, we hosted a virtual workshop on Advanced Financial Planning, attended by entrepreneurs from all over California and as far as Ethiopia. The event provided insights into the unique financial landscape for clean energy startups and featured the following speakers:
- Moderator: Shawn Garvey, Founding Director, Momentum X Ventures
- Chante Harris, Founder & Managing Partner, Eunoia Group
- Scott Pitts, Founder, Socket Capital
- Erin Davis, Co-Founder & COO, Enduring Planet
Key Takeaways
Chante Harris: Navigating Risks and Finding Value
Harris delved into the shifting landscape of clean energy funding. She highlighted the necessity for startups to communicate their intrinsic value beyond their technology and look for additional revenue and collateral options. Harris discussed blending public and private capital to transition projects from the research phase to viable businesses.
Harris also highlighted the importance of doing product market fit work before the product is ready. She encouraged entrepreneurs to ask:
“Who’s started to think about earmarking money for the specific problem you’re solving, and if they haven’t done that yet, how do you get them to?”
Scott Pitts: Creative Funding and Cash Flow Management
Scott Pitts shared insights on creative funding solutions, emphasizing the importance of finding financing partners who are open to innovative approaches. He provided the example of how his financing partner bought equipment and resold it to the startup, using collateral to secure more funding. Pitts discussed the need for high-fidelity cash flow forecasts and building strong relationships within the industry – before needing to ask for money.
“If you only manage your business based on the money you have in the bank, you have a capacity issue,” explained Pitts. He encouraged leveraging incubators and local venture/angel groups to find supporters passionate about clean energy.
“Find lovers with money.”
He urged entrepreneurs to find people who are excited about their technology and have the resources to invest.
Erin Davis: Simplifying Equity Raises and Financial Maturity
Davis encouraged founders to use SAFE notes (Simply Agreement for Future Equity) using the Y-combinator template. She stressed the importance of securing non-dilutive capital quickly and bridging funding gaps with loans. Davis highlighted the significance of maintaining well-organized financial records and building a robust pro forma. She encouraged companies seeking early-stage financing to visit Enduring Planet’s website and apply.
Strategic Advice for Startups
The session concluded with strategic advice for startups. Pitts emphasized the importance of having a backup plan and advised being prepared for potential capital crunches. Harris encouraged treating regulatory requirements as drivers of innovation and leveraging networks to increase funding access.
Resources & Tools
Funders & Accelerators
- Elemental Excelerator
- Enduring Planet
- Activate
- LACI
- The Clean Fight – New Energy Nexus
Grant Writing
Recruiting
Financial Management
- Climate Finance Tracker: funding transparency tool
- CARTA: SAFE Note management tool
- Boundless Impact: Life cycle analysis
- MainStreet: Tax credit platform
Special thanks to our partner, Momentum, and funder, The California Energy Commission.
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