In3 Finance Group
P. O. Box 548 , Santa Cruz,, California, United States

In3 Finance, part of In3 Group, increases your probability of success.

The main objective of In3 Finance is to provide faster and easier access to capital for renewables, social and environmental impact ventures and companies working in emerging markets. We can help take you where banks would typically not dare to invest, with attractive loans, equity investments, and grants. Loans offer competitive interest rates (both fixed and variable), flexible payment terms, and innovative loan structures. We partner with you to achieve alignment with funder requirements, stronger and more useful business plans, clear and effective presentation, and risk mitigation. We really listen to ensure the optimal capital solutions and skillfully-executed fundraising strategies.

Renewable Energy and Renewable Resources IndustriesForming a winning business plan and the necessary capital to execute that plan can take more time and patience than most business executives possess. We stand for knocking down barriers, easing the process, being systematic, trustworthy and dependable.

We deliver our services with steady, patient attention to detail. Those details often make the difference between “good idea” and “together, we got it done.”

We help finance start-ups (institutional money requires substantial experience in the industry and host country), renovations, retrofits (such as for energy efficiency) and expansion projects. We build long-term relationships that deliver results via these services. See our client history.

In3 Services — What We Offer

We help entrepreneurs reliably secure project finance and accelerate their commercial success in the US and emerging markets worldwide.

Getting through the gauntlet of raising capital ... We provide access to diverse sources of impact capital, business development and investment facilitation services to growing US and international companies. This includes term loans, equity investment, various types of grants, and other forms of non-traditional capital such as convertible debt, quasi-equity, revenue contracts and working capital lines of credit, loan guarantees, and more.

If seeking project finance, we recommend you begin with an honest, self-appraisal to assist with figuring out the best way forward. Use our Project Investment Readiness Assessment (PIRA) — it takes only 10-15 minutes and will help expedite your fundraising.

Overview of In3 Services 

RAISING CAPITAL: We help you qualify for the best possible loan, grant or equity investment terms and valuations, greatly increase the probability of a successful infusion, and reduce the time it takes. About impact funding, FAQ, our client history.

LOAN PACKAGING/ORIGINATION: As a designated loan originator with respected industry credentials (we’re certified by Moody’s Analytics), we work closely with development finance institutions, sovereign and impact investment funds, and can offer guidance on crowdfunding approaches when appropriate, to help you win investor support while avoiding “blind alleys” along the way. Our services save you time and money in the long-run via increasing the odds of loan approval at lower rates of interest and fees.
Start by obtaining your “bankability score” here; we want to know your status (as a %) … it’s fast and free.

DEVELOPMENT GRANTS: From smaller technical assistance grants to larger working capital and equipment grants, qualified individuals and companies can leverage funding in areas targeted for development.
RISK MITIGATION: We bring fresh perspective and non-judgmental advocacy for presenting your deal with issues handled, strengths apparent, and finance well justified. Most risks are just lack of having an effective mitigation plan.

STRATEGIC ADVISORY: For planning, developing and financing your project or venture, with years of experience and track record of success with advising startups, governments, and established companies.
COACHING & EDUCATION: Workshop leaders since 1985, and certified in coaching and facilitation, we bring expertise in both subject matter and learning strategies, making our programs an invaluable investment. We also bring workplace diplomacy, team development and communication expertise; if you’re having trouble in this regard, visit Daniel Robin & Associates.
We prefer to partner with our client companies and work in collaboration, and would be happy to discuss your situation after you’ve explored this website’s tools and information FAQ or reviewed how to qualify for project finance. long history of success working with clients that have used these services, you can benefit, too.

Raising money, as if nature had something to do with itRaising Impact Capital: We advise and assist project teams, developers, and investment partners/sponsors to obtain cost-effective capital. We specialize in using a “layered” approach to raising impact capital, sometimes involving multiple financing sources or multiple rounds of finance, to achieve project goals.

Since 1996, In3 has partnered with clients in diverse industries to help them raise money — debt, equity, convertible debt, grants, revenue contracts, joint ventures and more — for US operations as well as project finance in emerging markets and developing economies. (See also, related article on impact funding.)

The main capital that we have obtained for clients in the current economy (since 2008) is low-APR term loans (3-20 years), for at least $1.5 million and up to $250 million or more. Average loan size as of 2014 is $11.5 million, with 6.5 year tenor. We also can assist with attracting equity partners, or “quasi-equity” (also called C-loans) when appropriate. Our fees are commensurate with risks and the amount of work required to obtain capital.

Quasi-equity instruments have both debt and equity characteristics, used mostly in developing countries. One option is convertible debt (starts off as a loan then converts to equity based on milestones reached), and another is a subordinated loan; both of these use a fixed repayment schedule. Other options include preferred stock and income-based or revenue note investments, which require a less rigid repayment schedule. Quasi-equity investments are available whenever necessary, to ensure that a project is soundly funded, offering yet another approach to qualify and unlock required capital.

We maintain an active network of both public and private sources, with specialization on development finance, impact finance, and social and/or environmental responsibility (see Our Sweet Spot). We also work with short-term financing needs, such as import-export or bridge loans, as part of a services package. Our clients are mostly in renewable energy (solar, wind, small-scale hydroelectricity), renewable resources (agriculture, agroforestry, water), waste conversion (biomass to energy, biofuels, biochar), industrial biomaterials (fabrics, textiles, specialty ‘green’ chemicals), health & sustainability.

The most attractive terms can be obtained by de-risking and carefully preparing plans and proposals. We work with both US companies and overseas companies doing business in emerging markets and developing economies. See list.

Loan Packaging or Origination: We help determine the best options for loans in these markets, then assist with “packaging” — preparing or polishing the loan documents, including any necessary financial modeling, business plans, loan application forms, and other materials requiring analysis and clear/concise communication. In general, expansion capital (when the operating company has been in the line of business 3 or more years) is faster to obtain than “greenfield” projects, as are projects involving renovation, refurbishment, or retrofits (such as for energy efficiency). We do work with startup or “greenfield” projects, cross-border joint venture partnerships … teams seeking project finance from other than commercial bank sources (including the multilateral development banks, private impact investors, some family office, sovereign funds, larger angels and angel groups). We have earned a success rate of better than 98% since inception. References available.

We also offer deal syndication (multiple concurrent investors) for industries and projects in host countries where we have the most experience. Loan terms typically offer attractive, market rates of interest, and customary financing costs and fees borne by the borrower. Some projects qualify for concessionary (below market-rate) loan terms. With interest rates at historic lows, this might be the perfect time to obtain a fixed-rate or variable-rate term loan.

After completing a fast and easy self-assessment, feel free to ask us for an estimate of costs and timeframes. Refer also to our industry Sweet Spot, Frequently Asked Questions, or a summary of How to Qualify for development finance loans.

Grant Funding: We help determine the best options for development grants in overseas markets, which vary greatly by region, then we can assist with preparing the grant program description and making initial inquiries. We enjoy close working relationships with several sources of Technical Assistance grants, feasibility study grants, and startup project assistance grants up to US $900,000.

Risk Mitigation: We systematically de-risk your investment opportunity using a variety of mitigation strategies including careful planning & analysis, risk insurance, credit enhancement (such as loan guarantees), and other tools based on industry standards applied to your unique situation.

Strategic Advisory for planning, developing and financing: Business plan critique and development, financial model reviews, and assistance with meeting lender requirements are also available. Our advisory services are usually arranged as a package within a tightly-defined scope of work, and would typically include one or more of the following

Capital formation strategy – identify and pre-qualify the optimal source(s) of private or institutional debt finance, sometimes supplemented by private equity investments, subordinated debt, or other forms. Start by using our Project Investment Readiness Assessment (PIRA), then evaluate your options.
Business planning – we can help develop or polish your project business plan (quite different than a venture investment business plan; review the differences), to ensure that your proposed project meets the with success. If you already have a project business plan, we also offer effective review or critique, once the capital sources(s) have been identified.
Project financial model and cash flow analysis and ratio requirements review
Transaction de-risking – Risk analysis and mitigation solutions such as loan guarantees or, pledges of collateral, credit enhancement, and for some projects, evaluate the need for available risk insurance
Management team qualifications (resume/CV) review to capture highlights; identify how to present any gaps
Structuring transactions, including coordinating with attorneys, accountants and other professionals
Project search/selection/development: Not yet clear about the project itself? Elements or partners missing? Issues that need to be resolved before proceeding? Ask us for confidential consultation.
Pre-qualification project evaluation prior to application — assess the degree of fit prior to making a contractual commitment.
Preparation of documentation — executive summary and presentations, including coaching on delivery, to obtain financing.
Be sure to review our process for a quick overview of how we work. We bring expertise in renewables, clean technology and health-related industries that deliver strong social/environmental impacts, and stand ready to assist you with moving through the exacting process of obtaining project finance or equity partners. We have a stellar track record, with consistently high rate of acceptance through careful screening and attention to details.

Coaching & Education: In3 principals have delivered hundreds of workshops and seminars for thousands of professionals in the US and internationally (see Daniel Robin & Associates). We also provide individual coaching and group facilitation services that management teams find quite useful. Today we offer programs that clarify and inspire, focus on innovation for sustainability, investing/fundraising, entrepreneurship, management, strategy, effective team communication and more. Review our educational services overview and ask us about your specific issues, goals or learning objectives.

How We Work

We work in three steps (“In 3″ — get it?), collaborating with client companies to:

1. Prepare – Identify, evaluate and describe project(s) and funding options.
2. Present investment proposal or pre-apply for project finance per investor’s preferred format.
3. Partner — assist with investor due diligence, obtain commitment letter or expression of interest, execute agreement(s).

Funding Process Steps

PREPARATION: In step 1, before contacting us, you can assess your project’s readiness and receive feedback about your project’s opportunities for funding. Our assessment (Project Investment Readiness Assessment, or PIRA) helps clarify your chances for success via a “bankability score” and thorough explanation of what it means in practical terms.

Then, when you contact us for assistance, we can together assess what work is needed, who will do what, and more accurately estimate service fees and timeframes.

Both established companies and new ventures or project companies are welcome.

We may ask you to consider the need for additional project development, planning or polishing the package of due diligence materials as necessary to achieve favorable terms. To receive project financing without delays, also review responses to Frequently Asked Questions, Success Tips, or for work in an emerging market, consider using our 8-point, guide “Does my situation qualify (for US development finance)?”

Here are some of the points addressed in our 9-question PIRA assessment:

Does the project use proven technology? Capital for projects with little or no remaining technology risk — using “off-the-shelf” core products, services or technologies that are commercially proven — tend to receive the lower cost (better term) loans. For example, most solar/PV panels now carry a 30-year manufacturer’s warranty. If your core innovation is in the technology itself, consider venture finance, not project finance.

How to Securitize Loans: Risk management is an import value-add from using In3′s services.

Contractual arrangements with suppliers or customers help minimize commercial risks (such as power purchase agreements for energy producers), but loan guarantees, corporate or personal, are often requested to further ensure that the lender gets repaid. Such guarantees or partial guarantees sometimes come from multilateral, development finance institutions, or “sponsors” (partners) that wish to see the company deliver developmental impacts in the form of good, private-sector job creation, cleaner water or air, healthier indoor cooking, or a myriad of other sustainability solutions.
Existing or new capital assets can be pledged as part of a collateral package to help further secure the loan, through limited-recourse or no-recourse lending (unlike a real estate mortgage).
Risk insurance can play a helpful role when working in host countries with unstable currencies, policies or government regimes.
Getting Started: To clarify the type, size, and scope of the project we use a one-page pre-qualification form. Send this completed document to us for a free consultation. We may ask you to use our readiness assessment tool as well. If you have questions, contact us; we are here to help.

Project Development follows pre-qualification screening. This step begins with discovery of the project’s status, including geographic placement, managers and sponsors, and overall financial situation:
- Who are the players and what is the scope of the project?
- Total budget, estimated costs and amount of finance?
- Ownership structure (host country and US ownership/involvement)?
- Assets organized and listed in one place?
- Is there a business plan or other prepared documentation?

Our Value-Add: We work with identified gaps that may influence your probability of success. We speak fluent “investor” — the language used by accredited individuals, investment funds, banks and non-bank finance institutions — to help you step into their shoes and gain mutual understanding and respect from the get-go. We’ve run numerous successful venture fundraising campaigns and originated loans for complex projects using these best practices and tools, making the process easier and more systematic.

Further, we can spot risk factors and other “out of bounds” conditions that can get in the way of investor support. Our objectivity and training gives project teams the opportunity to adjust presentations and plan proactively, making most projects investible and bankable without the risk of making the wrong impression or being turned down by a desirable source of capital.

How we work: Typical project development entails setting up one or more conferences and/or meetings with key personnel and/or government officials, sometimes restructuring (such as setting up a legal entity where the project is to be located, or through a joint venture with additional partners), or others strategic considerations as needed to secure capital.

PRESENTATION: Step 2 actions depend on the target investor(s), where some prefer to meet in person — a pitch session with deal screeners followed by one or more subsequent meetings with decision makers — while others prefer to use a more anonymous and formal, online application system.

What are the expectations of each investor, including

the time they are willing to invest up front
values and principles, sense of responsibility or mission, their true “hot buttons” and “sweet spots”
appetite for risk
financial ratios, such as debt-to-equity, debt service coverage, expectations for return, etc.
appetite for detail — what facts must be presented first before other specifics will be heard?
cultural or geographic considerations, such as what regions, countries, languages or currencies they prefer…
We facilitate and streamline this process to hit the mark and gain “traction” (investor interest), faster and easier than our competitors. We shave off at least 30% of the time it takes to attract investment at favorable terms.

PARTNERSHIP: In Step 3 we use information collected in steps 1 and 2 for the due diligence process, leading to procurement of capital investments, and advise or consult with the company principals as necessary to satisfy investor requirements, provide supplemental information (updated financial statements is the most common request), and when necessary, remove any remaining, perceived issues or risk factors.

Our track record shows we have learned how to navigate all these complexities to help you find and partner with investors that “get it.” It is essential that companies ONLY accept capital from investors with whom you share values and principles. A values mismatch can lead to unimaginable horror stories — investors driving your otherwise viable business into the ground. When we help companies source and screen investment capital, this is imperative, and part of how we do business.