Capital Chaos

With the great interest in “Going Green” and becomming more conscious about the environment, tech companies and investors alike are starting to explore this sector as a serious business.  So much so that there are now dedicated funds which are solely focused on “green initiatives” or sometimes called “Socially Responsible Investing”. 

While many of the larger VC firms and banks in the Valley have “Green” as an investment focus, these four funds/banks are solely Green-Based:

The Fund: Underdog Ventures (Island Pond, Vermont)
Why it’s different: Underdog expects to sell its stake in its investments in seven to eight years instead of the traditional five to seven. If a company wants to change its social mission, it must get Underdog’s approval.

Areas of interest:

Contact:
802-723-9909
Email: info@underdogventures.com

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The Fund: Root Capital (formerly known as EcoLogic Finance) (Cambridge, Massachusetts)
 

Why it’s different: It’s a nonprofit investment fund that can lend up to $750,000 with a median size of $200k. Root Capital lends directly to cooperatives in the developing world, allowing them to use their orders as collateral. It’s similar to factoring, but Root charges only 9 percent interest.

• Areas of interest:
• Agroforestry (shade-grown and sustainable agriculture)
• Wild-harvested products
• Certified wood
• Sustainable fisheries
• Ecotourism

Preference is given to businesses that:

- Demonstrate the ability to provide meaningful employment and significant increases in household income to disadvantaged groups, especially peasant farmers, women, and indigenous people.

- Operate in threatened habitats; provide sustainable economic alternatives to environmental destruction; and act as responsible stewards of wildlife, forests, rivers, coasts, and other resources.

- Show potential for local self-determination through worker-owned and managed enterprises such as rural cooperatives and producer associations.

- Are unable to secure financing from conventional commercial sources due to their small size, lack of collateral, limited experience of management, and/or the financial risks associated with the locale.

Contact:
675 Massachusetts Avenue, 8th Floor
Cambridge, MA 02139-3309
Phone: 617-661-5792
Email: info@ecologicfinance.org
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The Bank: ShoreBank Pacific (Ilwaco, Washington)
Why it’s different: This community bank, which has $143 million in assets, lends money to green businesses in the Northwest and companies that bring jobs to the region.

Contact:
203 Howerton Way SE
Ilwaco, Washington
Telephone: 877-326-4326

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The fund: TBL Capital (Sausalito, California)
Why it’s different: TBL–it stands for “triple bottom line”–has raised $50 million to invest in companies that promise a significant social impact. TBL invested in its first company last October. (Their site is currently under construction)

Contact:
1505 Bridgeway Ave. S-128
Sausalito, CA 94965

E-mail:

Mark A. Finser mfinser@tblcapital.com
Joe Glorfield jglorfield@tblcapital.com
Joe Marshall jmarshall@tblcapital.com