Introducing: Cool Climate Capital GPT
Enhancing Due Diligence and Unlocking Climate Financing Opportunities
It’s been a while since our last post, and we have many learnings to share, with more updates coming in the next few weeks.
First, however, we are thrilled to unveil one of our internal projects that we’ve been developing and testing: the Cool Climate Capital GPT.
As we have been evaluating new investment opportunities and initiatives to launch, we found ourselves repeatedly scanning the financing landscape to identify alternative financing mechanisms. Although we typically avoid voluntary carbon markets or incentive-driven businesses, we also don’t shy away from capitalizing on existing market opportunities.
This led us to develop the Cool Climate Capital GPT, a tool we initially created for our in-house initiatives and portfolio companies. After some initial fine-tuning, we are excited to open this tool to the broader ecosystem.
Why Cool Climate Capital GPT?
The Climate Capital Guidebook, provided by the White House, is a treasure trove of information on various funding programs and opportunities. As well as the detailed Liftoff Reports being released by the US Department of Energy. However, navigating their extensive content can be daunting. Our Cool Climate Capital GPT simplifies this process by allowing users to:
Ask Specific Questions: Whether you need details on eligibility criteria for a program or want to know about the latest funding opportunities, you can get precise answers.
Identify Business Opportunities: Our tool helps pinpoint the most relevant funding programs tailored to your needs.
Explore Areas of Interest: Dive deep into specific sectors or technologies covered in the guidebook.
Enhancing Our Due Diligence Process
At Cool Climate Collective, we pride ourselves on our thorough due diligence (DD) process, which capitalizes on the strength of our collective network.
As illustrated in our DD flow, we’ve already been employing three advanced LLM workflows to streamline our Stage 1 evaluation process. This includes everything from initial business and technology validation to expert technology validation and final scoring.
The addition of the Climate Capital GPT further enhances our ability to explore alternative financing landscapes, uncovering opportunities that founders might not even be aware of.
By integrating this tool into our DD process, we aim to provide a more comprehensive analysis, ultimately supporting better investment decisions and fostering innovation across the ecosystem.
How It Works
To illustrate the power of the Cool Climate Capital GPT, consider a small business in the renewable energy sector seeking funding opportunities.
By simply asking the tool, "Can you summarize the key funding opportunities for small businesses in the renewable energy sector?" the business can receive detailed information on relevant programs, such as the USDA Rural Energy for America Program (REAP), the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs, and the SBA 7(a) Loan Program.
The tool provides a summary of each program, including the type of funding, deal size, eligible entities, uses, and direct links to the respective program websites. This example demonstrates how the GPT can streamline the search for funding, making it easier for businesses to navigate and capitalize on available opportunities.
Supporting In-House Initiatives and the Broader Ecosystem
We aim for this tool to support our own in-house initiatives that are exploring the full capital stack, from small business to philanthropic endeavors, as well as now, supporting the overall ecosystem of founders and investors.
By leveraging the insights from the Climate Capital Guidebook & Liftoff Pathways, we hope to drive more impactful decisions and accelerate the transition to a sustainable future.