“Closing the Gap: Trellis Climate’s Mission to Overcome the ‘Commercial Valley of Death’ for Climate Technology”

Imagine you are the founder of a company that has developed a revolutionary technology for producing hydrogen at a significantly lower cost and faster pace than any other existing method. With remarkable success in your initial fundraising rounds, you have managed to secure tens of millions of dollars to demonstrate the effectiveness of your technology, which has exceeded all expectations.

Now, all that is left to do is to construct a large-scale facility, known as the “first-of-a-kind” plant. This is often referred to as the “commercial valley of death,” a critical stage where many climate technology startups encounter significant challenges. Due to the unprecedented nature of such a project, traditional financiers tend to hesitate, uncertain of the potential risks involved.

However, all hope is not lost, as the climate nonprofit organization Prime Coalition has launched a new program called Trellis Climate, aimed at bridging this gap and providing vital support to startups.

“Prime Coalition has always taken a different approach to climate finance as compared to its for-profit counterparts,” stated Lara Pierpoint, director of Trellis Climate, in an interview with TechCrunch.

“Our Prime Impact Fund makes conventional venture-style investments in startups while also assisting philanthropists in directing their funds towards high-impact climate projects. The newly launched Trellis Climate program follows this same model, with a specific focus on middle stages where funding is scarce.”

Pierpoint further explained that there is a growing interest among philanthropists to address the urgent climate crisis. With limited resources, she believes that the best use of philanthropic funding is to support innovative ideas and ventures with the potential to make a significant impact. These flexible and risk-forward funds are invaluable for startups in the climate technology sector.

For many founders in this field, Trellis Climate’s funding program is undoubtedly welcome news. While early-stage startups have access to various sources of capital, such as venture capital funds and federal grants, there is still a significant gap in the middle stages. This is where Trellis Climate aims to step in and provide critical support to startups with promising climate solutions.

“There has been a widespread assumption that once climate technologies are proven, industry and corporations will take the responsibility to scale them,” Pierpoint commented. “However, many companies are primarily focused on immediate shareholder value and are not as motivated to invest in long-term climate solutions.”

Therefore, there is a pressing need for philanthropic support to act as a catalyst for these technologies, allowing infrastructure investors to take on a slightly higher level of risk. Trellis Climate’s initial investments include startups such as Ample Carbon, which converts old coal plants to bioenergy with carbon capture and storage, and Ebb Carbon, a marine-based carbon removal company.