Financing options for energy storage startups

What financing options are available for startups?

Options for non-equity financing include venture debt, the colloquial name for term loans or lines of credit tailored to startups, as well as common mechanisms such as convertible debt, insurance, project finance, equipment finance, vendor financing, asset-based lending, and others.

What are energy storage trends & startups?

The Energy Storage Trends & Startups report highlights top trends such as lithium alternatives, hydrogen economy, and supercapacitors, among others, that will transform the energy storage sector by 2025.

Why is energy storage a good investment?

Energy storage as a service allows businesses to obtain a reliable power supply at zero asset investment and low implementation costs. This makes energy storage a good investment as it eliminates the need for large upfront capital and reduces the risk of stranded assets.

What types of non-equity financing are available to a startup?

Types of non-equity financing accessible to a startup depends on the stage of the venture. Appropriate options can vary by the type and stage of the startup, market conditions, and the nature of current investors. Often the ideal capital stack becomes more layered as a company matures.

What is the Energy Storage Innovation Map?

The Energy Storage Innovation Map is a comprehensive overview of innovation trends and startups that can impact your company. This map is derived using our Big Data and Artificial Intelligence-powered StartUs Insights Discovery Platform, covering over 4.7 million startups and scaleups globally.

Is venture debt a good option for startups?

Even outside of climate tech, venture debt and non-equity financing options for startups have matured and exceeded the overall growth rate of venture capital. Although U.S. VC deal counts grew between 2010-2020 from 5,500 deals to 12,250 (2.22x), venture debt more than tripled from 940 loans in 2010 to 2,900 in 2020 (3.10x) (Pitchbook, 2021).