Los Angeles Cleantech Incubator seeks to raise $30 million in second fund in effort to help communities that typically struggle to get financing.
(Bloomberg) — Los Angeles Cleantech Incubator has launched a second fund with support from former California Governor Arnold Schwarzenegger in a bid to back communities that often struggle to raise financing. The fund is expected to reach $30 million.
LACI, founded by the city of Los Angeles and its department of water and power in 2011, created its first impact fund in 2019. Of the 17 companies tapped for the first fund, 25% had a Black or Brown founder and 29% included a female founder, according to Chief Executive Officer Matt Petersen. Such funding could become even more important following the collapse of Silicon Valley Bank, which had played an outsized role in propelling cleantech startups.
Startups founded by women alone received 2% of all venture capital funds raised in 2021. Comparatively, teams comprised of women and men accounted for 15.6% of all funds raised. And research published in December found that startups with Black founders raise only one-third as much venture capital within their first five years as companies with white founders.
Two early recipients of funding from LACI’s new fund are electric-vehicle support company ChargerHelp! and homeware company Repurpose. ChargerHelp! co-founder Kameale Terry plans to hire more technicians and expand its services in 16 states, with a particular focus on California, New York, Texas and Florida. Repurpose, meanwhile, aims to eliminate plastic pollution.
“From my experience of being from South Central Los Angeles and in communities that may not have a lot of resources, oftentimes you can find the best talent in these spaces,” said Terry. “I truly believe that the best folks are in these communities that are untapped.”
–With assistance from David R Baker.
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