Invested In Climate

Bridge loans to the rescue with Open Road, Ep #96

Oct 1, 2024

30:11

If you’re an avid listener, you might know I’m always interested in learning about ways we might improve financial markets for climate ventures. Improving the flow of capital can, of course, be incredibly impactful in helping more climate solutions scale successfully. So I was really excited when I learned about Open Road and the important role they’re playing by offering bridge loans to promising companies.

Ok, maybe bridge loans don't sound that sexy to you? Think of it this way: if you’re an entrepreneur, what could be worse than running out of money? How about running out of money when you already have significant funding lined up just not yet in-hand. The sad truth is that this happens all the time – companies go under because they simply can’t keep paying salaries or buying supplies while they wait for financing to arrive. That’s the financing gap that Open Road has been addressing for over 10 years. In this conversation with Open Road CEO Caroline Bressan we talked about her background in impact investing, Open Road’s history, how their loans have unlocked 10 times the amount of capital, their climate portfolio, and more.

In today’s episode, we cover:

[03:08] Caroline’s background & role before Open Road
[04:09] Learning from Calvert that shaped Caroline
[05:13] Open Road, how did it start & the problem it's aiming to address
[06:46] Financing gaps related to climate: The valley of death & the missing middle
[08:37] Investment reach & focus in Sub-Saharan Africa
[10:31] Finding & selecting portfolio companies
[12:21] The type of impact Open Road has had
[13:24] The need for bridge funding beyond what is provided
[15:23] Open Road’s repayment rate
[17:39] How much of lending has gone to energy, ag & other climate-related companies
[21:01] Types of businesses Open Road has supported
[26:30] What’s next for Open Road