Tangible secures £4M funding to bridge climate hardware financing gap

Climate hardware fintech Tangible has secured £4.0 million in funding.

Tangible helps harness the potential of asset-backed financing structures through innovative software that facilitates the structuring, modeling, and management of transactions. 

The trillion-dollar ABS market is ready to fund climate solutions, but there's a disconnect.

 Climate companies pitch technological breakthroughs while lenders seek credit-worthy assets. However, even proven climate technologies struggle to access this capital without the right financial infrastructure. 

The Tangible platform bridges this gap by turning climate hardware into bankable assets that institutional capital can understand and fund. 

The platform enables first-of-a-kind innovations to use its sandbox environment to map their path to bankability, simulating transactions and building structures in an interactive deal room with even limited data. 

Meanwhile, scale-ready technologies use our standardised tools to deploy faster and cheaper. 

Further, the platform creates playbooks that learn from each deal and automates the parts of deal closure that eat away at deal teams' time. 

'Hardware is the backbone of our climate transition, but there's a critical financing gap as companies try to scale,' said William Godfrey, founder and CEO of Tangible.

 'While venture capital can fund innovation and development, accessing debt markets is essential for deployment at scale."

"Founders get stuck thinking about their business as an equity proposition," Godfrey explained. 

"Most founders excel at taking risks - that's what equity is for. But scaling requires a completely different mindset: debt is about methodically identifying and mitigating structural risks while correctly compensating for inherent credit risk. The companies that can master both are the ones that will succeed." 

Future Positive Capital, Hardware Club VC, MMC, Blackwood, and Systemiq participated in the funding. The company is also collaborating with 28 leading investment banks on a grant-funded initiative to standardise the financing approach for emerging climate assets. 

Tangible emphasises the critical role of bankruptcy remote structures in fostering trust and urgency in climate finance. 

"These structures not only make our financial systems more resilient but also add a layer of trustworthiness that's crucial for rapid deployment of capital. That’s why we’re making them easier to structure and administrate," Godfrey noted. 

He added:

 "The 2008 financial crisis showed us the catastrophic consequences of poor financial infrastructure and opaque asset-level risk assessment. With climate change, the stakes are higher still.

A similar failure in climate finance wouldn't just crash the economy—it would derail our narrow window for effective climate action." 

Tangible will use the funding to expand its team and develop its platform, to ensure rapid, reliable, and trustworthy deployment of capital to climate-critical projects.