Prime Coalition (“Prime”) is a 501(c)(3) that partners with philanthropists to place catalytic capital into market-based solutions to climate change. Our primary goal is to address the acute financing gap in early-stage climate-related innovation which currently prevents breakthrough technology companies from addressing climate change at scale. While venture capital (VC) is well-positioned to support capital-light innovation (e.g. software or connected/smart devices), it is not well-suited to support transformative hardware-based innovation in infrastructure-heavy categories relevant to massive greenhouse gas (GHG) emission reduction. Catalytic capital is patient, risk-tolerant, and flexible in ways that differ from conventional capital. It is a critical but under-utilized tool to support the primary population Prime serves: nascent hardware-based companies poised to address climate change. Its potential is to close the critical funding gap, and crowd in billions of dollars of growth capital not active in this space by “de-risking” these companies early on.
Prime’s investments diverge from traditional VC in corporate form, appetite for disproportionate risk/reward and longer time horizons, management incentives, and investment criteria prioritization, where climate impact is paramount. Whether it be through traditional grants, recoverable grants, program-related investments, or mission-related investments, catalytic capital can support Prime ensures that all catalytic capital is invested according to our core investment criteria: Gigaton-scale impact: Only invest in companies with potential to reduce GHG emissions at the gigaton scale annually by 2050. 2. Additionality: Only place capital where we can demonstrate investment would not be made “but for” Prime’s intervention. 3. Attractive to follow-on funders: Only invest in companies attractive to conventional investors in subsequent rounds, after initial risk is retired via catalytic capital support.