Generate provides $150 million for infrastructure during first year of operation

Written By: Stratton Report
January 14, 2016

Generate Capital

On January 14, Generate Capital announced it had financed over $150 million of innovative, sustainable infrastructure programs during its first year of operations.

Launched in late 2014, Generate Capital is a specialty finance company that provides financing options for innovative solutions in energy, agriculture and water infrastructure. The infrastructure projects Generate targets are often seen as too risky or too small in size, despite compelling economic value propositions. Generate Capital offers multiple types of financing programs to solve project developers’ capital needs.

Scott Jacobs, Chief Executive Officer and Co-Founder of Generate Capital notes: “We need to rebuild the world in a far more sustainable way, and that infrastructure overhaul needs new ways of being funded. We work with our partners to provide the right kind of capital at the right time, which we believe makes us the only long-term capital partner for innovators in these important infrastructure and technology categories. For many years, the market has been crying out for permanent, flexible capital, for transparency in underwriting and for efficiency in transacting, so we designed our business specifically for these purposes.”

Generate specializes in providing finance for Infrastructure-as-a-ServiceTM, a no-money-down business model that enables customers to pay for the benefits of technology and infrastructure without having to take on the initial capital expenditure or the operational requirements of managing the infrastructure over time.

Jigar Shah, President and Co-Founder of Generate Capital remarked:

“We are relentlessly searching for the innovators who are solving the critical problems of our time, and our job is to help these entrepreneurs and executives scale their businesses for both real impact and real profits. We help them create compelling customer value propositions that start with no-money down. Customers want to use critical resources more efficiently, but they frequently can’t prioritize investments into these solutions without a ‘pay-as-you-save’ type of model.”

Shah, the founder of SunEdison, is credited with introducing the no-money-down approach to solar, which helped propel solar from a small niche to the multi-hundred-billion dollar market it is today.
In one program, Generate Capital provided financing for businesses to implement battery storage solutions for on-site power management and energy efficiency, dramatically reducing these customers’ energy bills. This battery-based Infrastructure-as-a-ServiceTM model enables developer partners to compress their sales cycle while simultaneously boosting their closing rates, and allows customers to bypass the single up-front expense and pay for the infrastructure with the savings they generate over time.

Raj Atluru, a Generate Capital Board member and long-time investor in energy and resource-related innovation observed: “Over the last decade-plus investing in energy innovation, it has become increasingly clear that to win in these markets, you need to build that innovation into infrastructure. That requires project financing. The magnitude of deals completed in our first year, in addition to the substantial pipeline we’ve built, is evidence of the need for this kind of partner in the marketplace.”