Washington, D.C., Sept. 25, 2023 — With trillions of dollars committed to the dual challenges of climate change and global inequality, the money is simply not getting into the hands of high-impact companies fast enough. Recognizing this funding gap, the Open Road Impact Fund remains a go-to resource, offering these companies rapid access to bridge financing.
Today, the fund announced that it reached the successful disbursement of $50+ million in loans to high-impact companies.
Delays between investment commitments and project kick-offs directly threaten net zero and other impact timelines as entrepreneurs wait 6-12 months to begin their work. Because of these delays, mission-driven companies enter a starvation cycle, holding off on hiring, deferring salaries, waiting to place inventory and equipment orders, and otherwise slowing down growth and stalling impact.
Open Road breaks through these timing obstacles with short-term bridge loans to support organizations building creative solutions that impact the planet's future. Since its launch in March 2020, the Open Road Impact Fund has provided loans to more than 68 companies, underscoring the inherent need for the fund in the impact financing space.
As the Open Road Impact Fund continues to serve the sector, the tangible additionality of our loans becomes increasingly apparent. The positive impact of the fund is evident in job preservation, renewable energy generation, improved access to education, quality healthcare, and greater financial inclusion. A survey conducted by Open Road revealed that 86% of borrowers would not have been able to cover their operating expenses without a loan from Open Road. Furthermore, 90% of organizations experienced business growth or successfully launched new products and services during their engagement with Open Road.
"Our unique model remains the only fund that addresses the critical timing gap faced by high-impact companies through bridge loans. The urgent challenges of climate change and inequality require more than a traditional 1-1 financial leverage. The future demands the recyclability and 10X leverage provided by our loans," said Open Road’s CEO, Caroline Bressan. She continued, "The Fund’s $50 million disbursed to date has catalyzed over $0.5 billion in follow-on financing, pushing our collective efforts even further."