Lots has been written about SVB as a climate bank, but the real pain for climate mitigation is in the 2nd order effects

No one wants to talk about the hard stuff publicly, but here goes...

What we're seeing across deals, GPs and LPs 1/

First thing to know:

Loss aversion -- one of the strongest cognitive biases in the human psyche -- applies more to immediate loss (of capital) than to future loss (of planet)

It's fear, pure and simple

And it's drying up liquidity up and down the chain 2/

Liquidity is both transaction *volume & *velocity. Both are affected

Lenders have less to lend as their $ is tied up in treasuries or CRE that's now tenantless & underwater

Everyone else is extending diligence & slowing decisions-- on funds, co's, houses, you name it 3/

Shy LPs make for shyer GPs, compounding the crunch for years to come

Thus, many startups are facing haircuts or a ticking clock

Climate startups bear a disproportionate impact -- earlier revenue + greater $ needs = 😥 4/

So, more bad news. What to do?

1. Do you have a scenario plan for true survival-level burn? Make one
2. Seek alternate capital (IRA & many state level opps) to diversify
3. Accept help + resources, even if not cash
4. Build community so EVERYONE is invested in you in some way 5/

More on this (we're attempting to write again! Critique + comments requested 🙏)

climatemoney.substack.com/p/what-svb-really-means-for-climate?sd=pf