BioCycle first learned about Boston-based Spring Lane Capital when it committed $21.4 million in capital to Atlas Organics, Inc., a composting facility developer, for equity in future solid waste diversion projects and corporate support. Spring Lane Capital (SLC) is a private equity firm focused on "catalytic project capital investments for smaller scale distributed solutions in the energy, water, food and waste industries."
"We identified a gap in the financing market where early stage companies have established commercially proven solutions using venture funding, and hit the point where they need to raise project capital to fund infrastructure and equipment," Nikhil Garg, Co-Founder and General Partner at SLC told BioCycle. "This isn't a stage that traditional venture investors are well-suited to fund, as the asset-intensive needs aren't a good fit for their mandate." SLC provides investments in the $10 million to $25 million range.
Garg and his two partners have been working together for 10 years across the resource innovation investing space. He cut his investment teeth in the clean energy sector with solar energy and photovoltaic companies, in some cases utilizing smaller scale distributed investments. "We focused on how to help these companies access project capital to scale up - and to further prove out their business model so larger investors will write bigger checks," explains Garg. "Our financing enables them to establish enough proof points in the marketplace. Essentially, Spring Lane provides the stepping stone and know-how to help companies scale up over time. The goal is if we do that well, mainstream banks and infrastructure lenders will want to get involved."