Tenet raises $18 million for electric vehicle loans
Tenet, a fintech startup that offers EV-specific auto loans, raised $18 million in seed funding, the company exclusively tells Axios.
Why it matters: The New York-based startup wants to help offset the "green premium" many consumers associate with EVs and home electrification.
What's happening: Human Capital and Giant Ventures led the all-equity round, with participation from Breyer Capital, Global Founders Capital and Firstminute Capital. Angel investors Michael Tannenbaum, Gokul Rajaram and Michael Ovitz also participated.
- No investors are joining the board as part of the round, says CEO Alex Liegl, who declined to disclose valuation.
- The round was raised in two parts, with the first closing in September and the second tranche coming in May.
How it works: Tenet works with undisclosed credit unions, green banks and asset managers with ESG directives to provide consumer auto loans.
- It calculates EV depreciation based on a 12-year life span of the vehicle compared to a six-year life span of traditional combustion engine vehicles.
- Tenet loans backload payments closer to the end of the EV's life span to decrease monthly payments in the years that overlap with a traditional vehicle.
- Tenet offers direct consumer loans through its website or through its network of affiliated dealerships and payments processors.
- It wants to work with OEMs in the future, Liegl says, since many existing loans offered by OEMs are through outside banking partnerships.