Project Track

The rolling application process was designed with the following outcomes in mind:

• Elemental can be more nimble with our due diligence process and get back to you with questions and decisions at a faster rate.
• Accepted companies will have access to Elemental’s suite of services even before Cohort Kickoff in October. Accepted Project Track companies will be able to launch projects on their own timelines, rather than waiting until the full cohort has been onboarded.
• Because we only fund 15–20 companies per year, the sooner you apply, the better chance you have at securing a spot in the cohort. It is possible that the cohort is filled ahead of the final application deadline (May 31, 2023) so we encourage you to submit an application as soon as possible. Rest assured, all companies will be evaluated using the same criteria.

As a nonprofit organization, any proceeds from our investments go to supporting future climate tech entrepreneurs. We use either a Simple Agreement for Future Equity (“SAFE”), convertible note, or in some cases may be able to participate directly in an open round. We’ve shared a high-level overview below and will provide more specifics upon acceptance into the program.

Simple Agreement for Future Equity (“SAFE”):

Y Combinator created the SAFE as a simpler alternative to convertible notes. It allows investors to purchase shares in a future round at a pre-negotiated discount (industry standard is 20%). We like this investment vehicle because it is founder-friendly and flexible, allowing us to work with companies outside of their usual fundraising cycle. Accepted companies will execute three separate SAFEs with Elemental, each aligned with program milestone deliverables and payment amounts.

Convertible Note:

In some cases, we will use a convertible note. This flexibility allows later stage companies to choose the instrument that is right for you. If you’re interested in learning more about the commercial terms of our Convertible Note, we can share that information further into the application process. Accepted companies will execute three separate notes with Elemental, each aligned with program milestone deliverables and payment amounts.

Direct Investments:

In some instances, Elemental will be willing to directly participate in an open round if the timing aligns with completion of the milestones deliverables. In addition, as Elemental is constantly looking to fill financial and programmatic gaps, we may offer other funding mechanisms in the future, such as additional debt offerings. We will work closely with accepted companies to find a path that makes sense for both parties.

We define frontline communities as groups that “experience continuing injustice — including people of color, immigrants, people with lower incomes, those in rural areas and indigenous people — [and] face a legacy of systemic, largely racialized, inequity that influences their living and working places, the quality of their air and water and their economic opportunities.” (Climate Justice Working Group)

United States

For projects in the U.S., we encourage companies to reference multiple tools to compare indicators including the Council on Environmental Quality (CEQ) Climate and Economic Justice Screening Tool, CEJST, and the EPA’s Environmental Justice Screening and Mapping Tool, EJScreen. These tools are based on nationally consistent data and an approach that combines environmental and demographic indicators in maps and reports that include burdens across climate change, energy, health, housing, legacy pollution, transportation, water, wastewater and workforce development. These maps help compare selected census tract locations to the rest of the state, region or nation.

Hawaiʻi

Elemental’s work has been motivated by our experiences in Hawaiʻi where proximity to resources and significant exposure to climate risks impact the island communities. These impacts are particularly acute for Native Hawaiian and Pacific Islander populations, whose communities are often not seen as priority areas for infrastructure investments. In Resolution 20-206, the city and county of Honolulu have defined frontline communities and committed to equity and justice to the realization of equitable outcomes. The Resilient Oahu program has identified the Social Vulnerability Index and ALICE Report findings as helpful tools to identify frontline communities and advance equity (more on each tool here).

California

One tool we use to identify the communities in California on the front lines of climate change is the CalEnviroScreen 4.0 (CES). CES is a mapping tool that, while not perfect, identifies “disadvantaged communities” with both pollution burden and vulnerability to the effects of pollution. Areas identified in yellow, orange and red by the October 2022 CalEnviroScreen map reflect high levels of pollution across multiple indicators (socioeconomic, environmental and health).

Global

We expect companies working or looking to work in countries outside of the U.S. to adapt Elemental’s frameworks for approaching projects and research, explore and seek local feedback on the appropriate definitions and tools for the geography they aim to deploy in.

While projects can be deployed in any geographic market, each year the majority of projects are based in the U.S.