Grant funding or an investor for a solar business?
We install mini-grids in two districts. We could take a grant that covers 18 months, or an investor who wants equity and a return in five years. The grant is easier. I am not sure it is better.
4 replies
Ask what happens in month 19. Grants are wonderful until they end, and a business built around grant cycles stops when the cycle does. If your unit economics work, take the money that expects them to work.
thabo_m: Ask what happens in month 19. Grants are wonderful until they end, and a business built around grant cycles stops when the cycle does. If yo...
Agreed, with one exception. If you still need to prove the model, grant money is patient in a way investor money is not. Grant first, investor once the numbers are real.
diego_f: Agreed, with one exception. If you still need to prove the model, grant money is patient in a way investor money is not. Grant first, invest...
That is a clearer way to put the decision than I had. We are still proving the model honestly.
Read the grant conditions properly too. Some restrict you from taking equity later, which decides the question for you.
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