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Corporate Equity vs. Asset Funding … no, it is absolutely not the same 

Aktualisiert: 9. Apr.


🌞 Early 2023 has seen significant funding in the downstream solar power sector, such as #Enpal's 215 M € Series D at a 2.4 bn € valuation in January 2023, followed by 430 M€ in debt raised in June. #Otovo raised 120 M € in asset finance in January 2023. While much of that money is still there, just recently, Otovo had to raise a 40 M € equity round at a vastly reduced valuation.


⁉️ So, those scale-ups now have deep pockets? 


Often, a crucial distinction about funding rounds gets blurred in financial communication: large #assetfinance deals, while impressive in size, do not immediately add to corporate funding. This misunderstanding poses a significant risk in evaluating the stability of a cleantech scale-up with asset roll-out: even with hefty asset funding available, the scale-up could teeter on the brink of failure if corporate capital is dwindling. We may see some of that unfolding in the coming year.


🔥💸 Corporate equity: the typical funding structure 


Corporate #equity involves exchanging a company's shares for capital, typically catering to a broad range of corporate expenses and structural growth investments, in case of cleantech scale-ups with retail business, a considerable costs item is sales and marketing expenses. With corporate funding, investors buy into the company's vision and potential, looking for long-term growth and returns. Corporate equity is money at risk.


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Tobias and Christian

We build Cleantech Bridge Equity Advisors based on our first-hand experience in driving innovative cleantech business models and connecting investors with new asset classes.

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