Looking for mid-market project funding?
In3 delivers mid-market project funding at attractive terms from an in-house, private Family Office. We favor project developers with cutting-edge solutions, and can support disruptive innovations that help build a better future, including “First of a Kind” (FOAK) technologies. That said, we remain agnostic about underlying technology, even if not particularly innovative but more “tried and true,” so long as it does not cause or perpetuate social or environmental harm.
Sector Focus | What we won’t fund | Why “Completion Assurance” | CAP funding qualification | 1-pg Tear Sheet
In3’s flagship CAP funding main advantage is funding certainty once pre-qualified for almost any project above $25 million, located almost anywhere, because this innovative, private funding is good with …
- Projects at any reasonable state of readiness — does not need to be “shovel ready”. We can cover remaining pre-construction development costs.
- A partial, financial guarantee serving as security that the project will be delivered. Compare this “Completion Assurance” Guarantee (CAG) to a cash deposit
- Streamlined due diligence of project proposal packages, without elaborate application forms or upfront fees.
A secondary advantage is that we have great flexibility in the things that matter. We can deliver up to 100% funding, with zero initial costs, for both innovative and well-established incumbent solutions to the problems we all face, from climate finance to the need for more sustainable buildings, from better, more affordable housing and healthcare to food/energy/water security to how we handle waste.
IMPORTANT: To receive proper attention, take a few minutes to understand what we do, how we work and what makes us different. We take pride in our customer service … and you will be better served if you first make sure there is a fit. Nobody wants to waste time.
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CAP is one of several In3 funding options, and is usually the place to start for project finance. When CAP is your best (or only) option.
Not sure what project(s) to focus on for further research and development? Entrepreneur’s Starter Kit
There are four (4) main pathways to project funding, shown below in order from least to highest initial costs:
- In3CAP for up to 100% of the required funding, $25 million or more, as equity; see tear sheet, synopsis, or get started. See these update and simplified Steps to CAP funding pre-qualification for either a
- Standby Letter of Credit
ideally for 50-75% of total funds - Cash deposit, 25-35% or more, as surety, instead of a bank-involved guarantee, like the SbLC
- Direct assets in lieu of an SbLC (using Bonds, MTNs or gold).
- Standby Letter of Credit
- Involve a sponsor for CAP security, such as …
- A private party with assets to back an SbLC (some can simply use their balance sheet, others for a fee, or via asset pledged directly to the funding bank without an SbLC)
- Impact foundations
- Private family offices
- Private lenders
- Institutional impact investors, regional development banks, etc. (higher level of difficulty)
- A Sovereign Government (Ministry of Finance) as sponsor via a Sovereign Guarantee for 100% of the funding. SGs are only available from certain countries
- An involved vendor or service provider such as an EPC firm, general contractor, or equipment supplier, usually with an equity kicker.
NOTE: Some sponsors prefer a cash deposit via a line of credit, bridge loan, CD or cash equivalent for at least 25-35% of the total required funding until the monthly draws complete.
- A private party with assets to back an SbLC (some can simply use their balance sheet, others for a fee, or via asset pledged directly to the funding bank without an SbLC)
Via In3 Management Services to advise on your best options for funding. We can help you identify and arrange debt only, equity only, tax equity investors, venture capital, convertible instruments, financial instruments (via third party guarantors), or hybrids of these with no preset minimums. For highly-qualified projects in our sweet spot, we may also be able to assist with arranging your project’s guarantor called Done For You (DFY) on a fee-for-services basis. All management services are fee-based; there are security deposits required for alternative funding pathways to obtain binding terms, fully refundable if the funding does not go forward. Only In3 CAP is without initial costs.- Alternative funding pathways include a project loan and/or equity options, up to 100% loan-to-cost (LTC) with interest rates currently at historic high APRs. Requires at least 25% cash down payment (not a deposit that gets returned, as with CAP funding) to the lending partner. Lower APRs require larger deposits and/or higher IRRs. Each funding partner follows their own criteria, and they allocate risk differently, but generally all use more stringent underwriting standards than CAP funding. Note that none of the lender’s down payment goes to In3.
Though these non-recourse loan programs are not as demanding as banks and institutional loans, our private lenders and equity investors do uphold more traditional project finance industry standards than CAP’s family office. Be prepared for full disclosure and transparency about how financial projections were derived using proper IFRS or GAAP accounting, candid risk analysis and risk mitigation plans. The financial upside is important storytelling, but simply not the entire story used for making funding decisions. Holding back key risk disclosures or intentionally misrepresenting risk vs reward is a sure-fire way of quelling interest in funding for your project.
Compare: In3’s project funding programs by initial cost
In addition to CAP funding, we offer a variety of programs for experienced or even first-time developers in our focus industries. Jump to an overview of all project funding programs.
Key facts about In3 Capital:
- We offer an innovative mid-market project funding solution called Completion Assurance Program™ (CAP FAQ). This “flagship” funding is a faster, easier and better way to finance impact projects or portfolios of at least $25 million total budget at any reasonable stage of development. CAP delivers up to 100% of the project’s financing (no co-investment required), currently with no up-front costs.
- Loan programs that deliver 100% loan-to-cost (LTC) “nonrecourse” mid-market funding at attractive rates of interest, but even these non-bank private loans require more thorough preparation and planning to meet higher standards of readiness to begin construction. See below for Loan Qualification.
- In3’s “sweet spot” is projects with social and/or environmental benefit, but we’re flexible about this. All reputable project funding is somewhat “bespoke”, that is, tailored to each client. We support almost anything that makes business sense (but when necessary, we give preference to sectors we know the best and avoid any that cause social and/or environmental harm).
Loan Qualification
How much higher are traditional lender’s underwriting (approval) standards than CAP funding and what, exactly, is the required preparation? The “big variable” imbedded in this question is who — who will fund it? More qualified project proposals have the greatest number of potential sources of funding. When fully prepared, more pathways open up, with diverse and often better terms & conditions available to you. Interest rates are high in 2024 with a few exceptions, such as our Program 7, APRs in the 6-12% range depending on the exact lender.
Not entirely ready to turnBut we can still fund “early” project proposals via CAP funding with a suitable Completion Assurance guarantor or cash deposit (often a short-term loan from a different party due to higher interest rates); compare these two options.
Most developers/owners make preliminary inquiries to see which source(s) seem(s) to be a fit, but the details remain make-or-break. Some developers are asset-rich with balance sheet depth from building dozens or hundreds of such projects that they can use as “fuel” to gain access to below-market-rate terms investment capital or as guarantor liquidity. If that’s your situation, stop reading this and register now. For the rest, consider your project’s remaining risks relative to the projected upside (ideally not just money but also positive social and/or environmental impacts) and let us know what you are requesting.
We can often develop a solution that is bespoke to your situation. As a private source of funding, our partners can usually offer terms and conditions that are better than banks (with the exception of using existing cash-on-hand) and beat most other forms of institutional project finance. The terms may be comparable, in some cases, but the pathway to closing with CAP is quite a bit “faster, easier, and better” (more predictable… more on this), as we “keep our eyes on the prize” via relaxed underwriting standards compared to more traditional funding.
Once you have worked out the likely source(s), or at least have a theory you’d like to test, it helps to define, with precision, what you will need to include in the documentation package (to pass through due diligence without delay), in what format, sequence, emphasis of points, risk mitigation … even subtle things like culture or style do vary widely, depending on the funder.
In3’s value-add comes from working closely with a finite set of funding sources that make preparation, packaging and presentation of a winning proposal more science than art. Nobody benefits from guessing games — especially when the right answers (fixed criteria that is largely unknown until the final, binding offer of terms) is often completely counter-intuitive. The true criteria — usually related to some interpretation of risk/reward — is by definition unknown and unpublished because the funder often only can articulate their findings after thorough evaluation and completion of careful due diligence. They don’t know what they don’t know, so neither can you. Best to avoid any such “blind alley” as they are so notoriously common with other sources of project funding. Not CAP!
What does it cost? How long does it take? What if no completion assurance guarantee (CAG) is possible?
Only CAP funding with a CAG is without at least some costs ahead of closing to access the arranged funds. Alternative direct loans do not require a Completion Assurance Guarantee (CAG), enabling you to originate 100% loan-to-cost (LTC) funding, typically at slightly higher rates of interest than CAP, but with more stringent due diligence standards imposed. Minimum is 25% cash deposit, making such loans a poor long-term loan option (not a good fit for lower IRRs) but CAP funding the better choice as repayment terms are more flexible, with no interest (minority equity carried interest only). Compare
This means that without proper vetting and preparation, there is less certainty of reaching closing on these loans (no streamlined pre-qualification step available, as with CAP), although probably still better odds than approaching a lender with terms and conditions unknown to you, or unknown to us, such as most commercial banks or many of the fraudulent “providers” of loans with dodgy backers.
In3 has been at this awhile, so (a) we know our lending partners quirks and criteria; plus, non-CAP loan fees charged (for due diligence security, lenders ask for a deposit, sometimes paid into an escrow account, or similar fees paid just ahead of closing) will not be requested if there’s an initial “no”, as we test feasibility before encouraging clients to pay for loan origination via well-vetted partners, and (b) we have probably already made most of the mistakes there are to make, so you don’t have to!
ACTION STEPS YOU CAN TAKE NOW: Follow these steps, or download this handy 2-page guide, then use our ONBOARDING SYSTEM when ready to have us evaluate. FAQs will answer most of your initial questions. Please NO NOT email us your files. We realize that seems like the logical thing to do, but we don’t have time to read them without you making the first move and discovering for yourself if you are in a position to secure funding through us.
Need more information?
Why In3? We solve the problems of traditional project finance. As you may know from first-hand experience(s), the traditional approach to project finance is typically expensive, painfully slow, and fraught with more than a few serious pitfalls, most of which go unnoticed until far too much “sweat equity” has been poured in. In business since 1996, In3 Capital Group (more about) has arranged alternative, advantageous funding for projects and (mostly cleantech and climate change mitigation) countless ventures, large and small. We directly finance purpose-driven, “impact” projects via CAP funding for essential infrastructure, cleantech, real estate and other diverse industrial sectors, including climate-smart food systems/agriculture, renewable energy, agroforestry, waste conversion, water, storage, and carbon-drawdown projects in the US, developed and developing economies worldwide. Current priority sectors
- What did we do to solve these issues? We resolve this “pain” thanks to our next-generation model and committed Family Office investment partners. Together we deliver a radically efficient, streamlined alternative. We built this funding program to address these four notorious issues with mid-market projects, delivering several sharp advantages.
- What makes us different? Background article on our funding program’s purpose, goals, benefits & advantages. Short version:
We make project finance “faster, easier, and better”
In3 CAP radically improves funding certainty.
- How to get started: Find out if you can qualify for CAP funding then deliver our first 3 “essentials” as a way to gain pre-qualified status. Simple 2-page guide (in case you missed it) download here, then apply and discover if this funding, or a different pathway, is going to work for your project. We strive to get you a fast answer — yes or no, but with limited time spent hovering on “maybe”. This is born of pragmatism, but also customer service excellence, which comes from doing this for a few decades. In other words, it is up to you to decide, given the abundant resources available to you online, how best to get your project pre-qualified. We can facilitate and coach to a point, so when you have a specific question after giving it your level best, please do ask us and our team will respond on a merit basis (a mix of first come, first served and then prioritized by opportunities with observable, proven potential). The more you use our documentation and tools to deliver what is suggested in our complete (detailed) stepwise application guide, also called the “Six Essentials” for CAP funding, or ask precise questions (beyond our FAQs, of course), the faster will be your progress.
- Want third party help with improving your odds of success? Upgrade to premium-level services: more.
- Need help building an investible project or venture package? Projects that are reasonably well documented using industry-standard accounting (GAAP, or IFRS per the International Accounting Standards Board) and ready for funding incur no up-front fees. Here are some service options.
- What’s the catch? (All FAQs here). If there is one, it would be simply that we can offer this lower cost of capital, delivered faster, more reliably, and with greater flexibility (paying for any further development or other expenses that most project financiers would refuse) because CAP transfers part of the risk of project non-completion to a guarantor and their bank — either the project developer, an involved stakeholder (such as a contractor hired to build the project), or a third party backer. We use such guarantees as security to screen out fraud, so if you are non-fraudulent, we ease and accelerate access to this quite advantageous funding.
- Is a guarantee not within reach because nobody will be able to support it? Are you sure about that? If so, consider these alternative funding options (4 loan programs) above $25 million for entirely shovel-ready projects in the US or overseas. Certain restrictions may apply.