In this Deep Dive series on Climate Philanthropy, I’m exploring the wide range of ways that foundations are stepping up to support climate progress, especially amid federal rollbacks and inconsistent commitments from large companies. Philanthropic capital is tiny in comparison to government and corporate budgets, but it can still be a helpful tool – especially if wielded strategically.

Let's set some context: In the United States, there are over 30,000 environmental nonprofits. It's a wildly diverse field with organizations of all sizes and countless focus areas. Since the 1970s, they’ve saved millions of lives through environmental protections that have cleaned our air, water, land, buildings, factories, and products.

Many are struggling with funding cuts and staff shortages, and too often they compete for attention and resources.

Foundations provide funding to these organizations, but they can also play a more fundamental role: building movement infrastructure that bolsters the power and influence of the entire field.

That, argues Pisces Foundation President David Beckman, is a priority that deserves more attention and support. David is a friend whom I’ve had the pleasure of working with over the years. When it comes to investing in movement infrastructure, I can’t think of anyone else who brings the nuance and insight David has gained through a career-long focus on advancing the environmental movement. We talk about his background as an National Resources Defense Council attorney, his role in helping start the Pisces Foundation, the entreprenuerial nature of his work, what movement infrastructure is, what he’s learned about investing in it, the importance of late night cookies in building relationships, the need for a meta narrative, the work of the Pisces Foundation, super pollutants, what business people and young people should know about the environmental movement, and much more.

• [03:49] David Background and Career Path
• [05:37] Founding of Pisces Foundation
• [07:56] State of the Environmental Movement
• [09:41] Strategic Posture and Movement Influence
• [11:44] Collective Work and Movement Infrastructure
• [15:08] Social Entrepreneurship in Philanthropy
• [17:29] Collaborative Field Building Insights
• [19:49] Late Night Cookies and Building Relationships
• [22:31] Meta Narrative in Environmental Movement
• [25:32] Discussion on Environmental Regulations
• [28:25] Pisces Foundation's Strategic Evolution
• [31:33] Super Pollutants Overview
• [33:40] Impact of DC Politics on Philanthropy
• [35:48] Advice for Business Community
• [37:13] Advice for Young People
• [39:04] Current Inspirations

• Pisces Foundation
• National Resources Defense Council
• Sierra Club
• Blue Sky Funders Forum
• Mosaic Funders Collaborative
• Hewlett Foundation
• “Abundance” by Ezra Klein and Derek Thompson
• U.S. Environmental Protection Agency

In the second installment of our Deep Dive: Missing Middle in Climate Tech series, created in partnership with Spring Lane Capital, we dive deeper into why the “missing middle” is not just a gap; it's a structural issue. We're joined by two of the sharpest minds in climate investing: Francis O’Sullivan, Managing Director at S2G Investments, and Rob Day, Co-Founder of Spring Lane Capital. Together, they explore how early-stage innovation and late-stage deployment are well funded, while the crucial middle phase of scaling is dangerously underserved.

We discuss why this gap exists, what solutions are emerging, and how investors are shifting their strategies to meet the moment. If you care about accelerating the climate transition, you’re going to want to listen to this.

What You’ll Learn

• Why the "missing middle" persists despite surging climate capital overall
• How venture capital models can distort scale-up potential
• What new capital strategies (like development expense financing) are emerging
• Why climate investing now enters a “third phase” of full-scale deployment
• How Rob and Francis are rethinking returns and risk for the climate transition

In today’s episode, we cover:

• [2:50] Francis' background and journey to S2G
• [4:36] Rob's career path in climate tech investing
• [6:30] Spring Lane Capital's founding and investment thesis
• [9:54] Discussion of the missing middle in climate finance
• [19:04] Structural challenges in climate investment
• [25:46] Organizational challenges for institutional investors
• [33:57] Concrete investment examples
• [41:37] Explanation of structured investment instruments
• [44:26] Historical context of climate investing

Resources Mentioned

• S2G Investments
• Spring Lane Capital
• World Resources Institute
• Invested in Climate - Missing Middle in Climate Tech Series: The Role of Family Offices with Spring Lane Capital & CREO, Ep #114
• S2G: 2023 Report - The Missing Middle: Capital Imbalances in the Energy Transition
• CREO: 2024 Report - Understanding the Climate Finance Gap
• Soluna

Connect with Us

• Jason Rissman
• Rob Day
• Francis O’Sullivan

Spring Lane Capital

• Website: https://springlanecapital.com/
• Linkedin:

The climate transition requires not just allocating trillions of dollars to scale new technologies, build new infrastructure, and transform incumbent industries – it requires getting the right mix of capital to develop, grow, and eventually scale innovations.

In the world of climate, promising technologies too often don’t find the growth-stage capital that’s needed before large institutional investors can finance reaching scale. Addressing this missing middle is a structural challenge that requires more attention, and today’s episode is the first in a series of discussions on the missing middle in climate, developed in partnership with Spring Lane Capital.

In this conversation, I’m joined by Jason Scott, a long-time climate investor who is Partner in Residence at Spring Lane Capital and also Board Chair of CREO Syndicate, and Régine Clément, CEO at CREO Syndicate. Spring Lane has been investing for years in the missing middle and has unique expertise in the challenges and opportunities it holds. If you haven’t heard of CREO, this is a group you should know. CREO works to help family offices invest more in climate. Families hold over $10 trillion in assets and can bring versatility and resilience that can help improve climate finance. CREO is working to mobilize $1 trillion for climate in the coming years. We talk about insights from their recent report on the missing middle, how climate investing has evolved in recent years, the role of catalytic capital, whether investors are backing away from climate amidst changing policy and macro-factors, and much more.

This was a great kick-off for our Deep Dive: Missing Middle in Climate Tech series, and I hope it piques your interest in the other episodes as well. And, if it piques your interest about partnering on a topical series of your own, don’t hesitate to reach out.

What You'll Learn

• What the "missing middle" is and why it's crucial for climate progress
• How climate financing has evolved over the past decade and what gaps remain
• The unique role family offices play in addressing climate investment gaps
• Why growth-stage capital is especially scarce despite strong returns in climate investing
• How policy uncertainty and structural market issues impact climate finance
• Strategic approaches to mobilize trillions for climate solutions by 2030

In today’s episode, we cover:

• 03:12 - Régine’s background and CREO Syndicate's work
• 06:08 - Jason’s background and Spring Lane Capital’s work
• 08:22 - Defining the "missing middle" in climate finance
• 13:19 - Analysis of climate investment trends and current market dynamics
• 17:43 - The 6x financing gap needed to reach climate goals by 2030
• 19:57 - Why the missing middle in climate is more complex than in other sectors
• 24:49 - Structural challenges with fund sizes and misaligned investor incentives
• 30:33 - The surprising finding that only 18% of self-proclaimed climate funds invest >50% in climate
• 34:05 - Perspective on progress despite policy uncertainty and market fluctuations
• 37:47 - The economic case for climate investing beyond environmental benefits
• 41:27 - The unique role of family offices in catalyzing climate capital

Resources Mentioned