The LACI Cleantech Debt Fund is a specialized loan program under the Los Angeles Cleantech Incubator, established in 2022 to supply non-dilutive debt capital to early-stage clean technology startups across the United States. Working alongside the LACI Impact Fund, it bridges finance gaps for companies often overlooked by traditional lenders and equity investors. Headquartered in Los Angeles, it contributes to LACI’s goal to foster an inclusive green economy by supporting innovation, market transformation and workforce development. Partnerships with climate innovation incubators nationwide extend its reach and promote access for founders from underrepresented communities.
This fund offers two tailored loan options. First customer financing serves startups with annual revenue under $1 million that have secured their initial customer, providing loans from $25,000 to $100,000 at 9% interest and a 1.5% closing fee, repaid through a balloon note over 3 to 12 months without collateral. Working capital loans target firms with annual revenue up to $5 million, offering $50,000 to $250,000 loans with collateral and monthly repayments over 12 to 36 months. Managed with Mission Driven Finance, the fund allows founders to maintain ownership while obtaining growth capital for research, hiring, inventory management and preparing for grant-backed projects.
Investment focus covers battery technology, electric transportation, renewable energy and sustainable infrastructure. Notable loans include Smartville’s project converting used electric vehicle batteries for energy storage, SiLi-ion’s work on silicon battery additives, Evolectric’s diesel-to-electric truck conversions with retrofit battery kits and SparkCharge’s expansion of mobile charging stations. By funding these ventures, the LACI Cleantech Debt Fund accelerates deployment of critical clean technology solutions and supports startups working to reduce emissions and promote sustainable growth.
