Tenet raises $18 million for electric vehicle loans

Tenet, a fintech startup that offers electric vehicle-specific auto loans, raised $18 million in seed funding, the company tells exclusively to Axios.

Why is this important: The New York-based startup wants to help offset the “green premium” that many consumers associate with electric vehicles and home electrification.

What is 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, said CEO Alex Liegl, who declined to disclose the valuation.
  • The round was closed in two parts, the first closing in September and the second tranche in May.

How it works: Tenet works with undisclosed credit unions, green banks and asset managers with ESG guidelines to provide consumer auto loans.

  • It calculates the depreciation of electric vehicles based on a 12-year life of the vehicle compared to a 6-year life of traditional combustion engine vehicles.
  • Tenet loans delay payments closer to the end of the electric vehicle’s life to reduce monthly payments over the years that straddle a traditional vehicle.
  • Tenet offers direct consumer loans through its website or through its network of affiliate dealers and payment processors.
  • He wants to work with OEMs in the future, Liegl said, because many existing loans offered by OEMs are through outside banking partnerships.

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