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💸 The One-Stop Shop for the Infrastructure Revolution

My Climate Journey

Photo by Markus Spiske / Unsplash

Host: Jason Jacobs
Guest: Scott Jacobs | Co-Founder & CEO | Generate Capital
Category: 💸 Funding

Podcast’s Essential Bites:

[4:31] “Generate is a permanently capitalized company that invests in and operates sustainable infrastructure projects. […] We really looked at the problem we were trying to solve, which is to build a lot more sustainable infrastructure to save the world. And we realized that the existing capital markets, the existing structures, the existing companies really weren't going to get the job done. And so we had to start with a clean sheet of paper and think about what the market really needed, what the customers and communities really needed when it came to sustainable infrastructure, what the project developers and technology companies really needed when it came to sustainable infrastructure.”

[6:33] “It was clear to us that we had to have the flexibility that a balance sheet gives you to provide any kind of capital that these project developers and technology companies need. You also need to have the operational capabilities, and the customer, base and customers solution orientation, to actually deliver for the customers and communities what was promised to them in the original pitch. And none of that gets solved with a finite fund life, like so much private capital is organized. And none of that gets solved with one tool in the toolkit, like so many investors only are able to offer. And importantly, none of that gets solved without a really innovative and reliable operating capability, so that these customers and communities actually can depend on the infrastructure as the mission critical resource provider that it is.”

[30:00] “We essentially invest through partnerships we form with technology companies and project developers. So we have a sense of what demand for capital there is among the partnerships we've formed with these companies that are rebuilding the world. So we might have a $100 million program with a battery storage developer and a $300 million program with an electric vehicle company. And we might have a $200 million program with an anaerobic digester developer. And so we have a sense of where they are in all their development timelines, with the assets that we're hoping to finance and own. And we roll that all up and just like any company create a forecast. And we have a certain amount of money that we need in order to fund the ability to achieve the forecast, both in terms of the operational talent and expenses that we need to fund inside Generate […] and the capital expenditures we need in order to build these projects.”

[37:27] “I would say aircraft leasing is certainly a comparable model for some of the technology and equipment financing that we do. I would say that the solar PPA project finance model is one that we've tried to apply and have successfully across a lot of other technologies and segments of the resources world. […] In our case, essentially, instead of going to an investment bank, you come to us and we say we can take care of all of the capital needs that you have. We're your one-stop shop […]. And that is a very different proposition than I think anyone offers in the market.”

[45:59] “We don't do anything we don't believe moves the needle on the natural resource issues or sustainability issues that we're trying to solve. We obviously think a lot more than just about climate change. We think about water scarcity, food insecurity, energy poverty, these are all intertwined issues with climate change and natural resources. We think of it as a resource productivity question: Can we do more with less of our precious resources?”

Rating: ⚡⚡⚡

🎙️ Full Episode: Apple | Spotify (Original Title: "Scott Jacobs, Co-Founder & CEO of Generate Capital")
🕰️ 1 hr 14 min | 🗓️ 11/29/2021
✅ Time saved: 1 hr 12 min

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