Unlocking the Capital Stack: The Role of Debt in Climate Startups (with Dimitry Gershenson and Austin Badger)

This is CC Pod - the Climate Capital Podcast. You are receiving this because you have subscribed to our Substack. Upgrade to CC+ for insider access & community or manage your subscription here.Disclaimer: For full disclosure, Dimitry Gershenson is the CEO of Enduring Planet, and Austin Badger is a Managing Director at HSBC, and Sherrie works as a General Manager at Climate Angels.CC Pod is not investment advice and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any investment decision. Don’t miss an episode from Climate Capital!But first: CC Network Fund, CC Syndicate, Climate Angels→ Back CC Network Fund. Large fund access with micro-fund minimums. In Q2, the fund invested in 18 companies, including Alta & LGND.→ Back CC Syndicate. SPVs with investment minimums starting at $1k.→ Join Climate Angels. Sessions w/ top investors, discounted CC Syndicate carry, community & more.In the latest CC Pod, we are featuring the most recent Climate Angels webinar, where Sherrie Totoki hosts Dimitry Gershenson, CEO of Enduring Planet, and Austin Badger, Managing Director at HSBC, to explore the often overlooked role of debt in the capital stack for early-stage climate startups. This conversation was originally part of a Climate Angels session, and we’re sharing it here as a special edition of our podcast.While equity typically dominates conversations around startup financing, this episode highlights how debt can be a powerful and strategic tool to fuel growth, manage cash flow, and avoid unnecessary dilution when used wisely.They walk through different types of debt available to founders, including cash flow financing (such as receivable and contract financing) and asset-backed financing (such as equipment loans or sale-leasebacks). They emphasize that understanding when and how to raise debt, before you're in a cash crunch, is critical to maintaining flexibility and negotiating favorable terms.The conversation also touches on investor perspectives, with insights on why lenders are becoming more open to working with early-stage climate companies and what founders should know about aligning their financing strategy with both board expectations and long-term goals.They share real-world lessons, including how one company successfully used debt to finance multiple U.S. military contracts, bridging long reimbursement cycles without giving up equity.Debt is not just for later stages. It is a valuable part of the capital stack if you know how to use it. Get full access to Climate Capital at climatecap.substack.com/subscribe