🟡 FOAK and CapEx Financing: Demystifying Offtake Agreements

​This event is part of The Drop 2024. To attend, you must have a ticket to The Drop. Apply for a Drop 2024 ticket.

​Session Overview: This Ripple will cover the commercial side of FOAK and CapEx financing – the logic of securing demand via multi-year, take-or-pay off-take agreements to secure non-dilutive funding. Building in climate often involves large-scale infrastructure and tangible assets. These are difficult to finance, especially in the early phases when it often comes down to grants or begging. Off-take agreements are the key to unlocking non-dilutive financing since they provide guaranteed, predictable cash flows and thus lower the risk profile of the investment.

​Key Questions:

• ​What role do the different types of commercial agreements, from LOIs to JVs to multi-year off-takes, play for financing?

• ​What are the key features that make off-take agreements “bankable” for providers of non-dilutive financing?

• ​What should founders look for in their first off-take customer?

• ​How can founders negotiate fair off-take agreements vis-à-vis large corporates?

​Who should attend? CEOs and CFOs/VPs of Finance from CapEx-intensive climate tech startups, corporate VCs, and large corporates who have provided off-take agreements to climate tech startups. Other VCPE investors who have financed FOAK plants.