Los Angeles Cleantech Incubator has launched a second fund and it’s supported by the former California Governor Arnold Schwarzenegger.
The aim of the funds is to help communities who cannot easily access finance. The fund is expected to reach $30 million.
LACI, was founded by the city of Los Angeles and its department of water and power in 201. It initiated its first impact fund in 2019.
The Chief Executive Officer Matt Petersen of LACI said, ” Of the 17 companies tapped for the first fund, 25% had a Black or Brown founder and 29% included a female founder.”
According to Reuters, this second funding could come handly following the collapse of Silicon Valley Bank, which had played may role in enhancing the operations of cleantech startups.
Meanwhile, It was reported that women startups founded by women alone received 2% of all venture capital funds raised in 2021.
Teams that included both men and women raised 15.6% of the total amount of money.
ChargerHelp!, a firm that supports electric vehicles, and Repurpose, a maker of homewares are two of the first organizations to receive funds from LACI’s new fund.
It was reported that the Co-founder of ChargerHelp! Kameale Terry intends to expand the company’s services to 16 states, adding more technicians, with a focus on California, New York, Texas, and Florida.
LACI in June 2022 launched its first in nation clean tech loan fund. It was reported that the $6 million fund will provide loans of between $25,000 to $250,000 to an estimated 100 startups of over five years of existence.
“LACI endeavors to help underrepresented founders–in particular female, Black, and Brown founders–overcome some of the institutional and historical barriers they face in accessing capital to grow their business.”
Cleantech Debt Fund in partnership with anchor investors Sobrato Philanthropies and Homecoming Capital, “To help cleantech startups move at the speed and scale needed to meet the climate crisis.”
“We created the LACI Cleantech Debt Fund as a new tool to give early stage cleantech founders a timely, affordable alternative to expensive venture capital and slow moving bank debt,” LACI CEO Matt Petersen stated.