Want a bank to fund any deal? no matter how weird?
Chestnut Carbon’s CFO didn’t convince JPMorgan by saying,
“Trust us, carbon credits are the future.”
He won by doing something smarter:
He took a weird, new asset class and translated it into a structure banks already understand.
In his words, he basically turned it into the carbon version of a power purchase agreement:
-long-term buyer
-known counterparty
-familiar advisors
-real collateral
-risk controls the bank can explain internally
That’s the play.
the CFO’s job in a first-of-its-kind deal is raising capital and making the unfamiliar look bankable.
Innovation gets funded faster when it’s packaged in old language.
When you’re pitching a new asset or business model, what matters more?
A) the upside
B) how easily you can map it to something lenders already know
This came from our CFO newsletter, check it out: https://lnkd.in/ekVbzEiR