Challenge I: Lack of Early Development Capital
It’s estimated that the U.S. backlog in essential infrastructure totals $7 trillion. However, the availability of construction and long-term capital is NOT the problem. We are in contact with many private financiers who have substantial capital and are aggressively seeking shovel-ready projects.
The most immediate and significant obstacle is the lack of early-stage development capital or “seed capital.” Historically, cities and states provided this development capital to “scope-out” projects and demonstrate viability. Governments no longer have this resource and construction/long-term financiers see it as too high a risk.
The most immediate and significant obstacle is the lack of early-stage development capital or “seed capital.” Historically, cities and states provided this development capital to “scope-out” projects and demonstrate viability. Governments no longer have this resource and construction/long-term financiers see it as too high a risk.
YRC Solution I: Source "Infrastructure Venture Capital"
Our new concept will be a magnet for quality infrastructure projects, providing the comparatively small amount ($1mm or less) of short-term capital needed to convince private construction and long-term capital financiers of the political commitment, community support, and commercial viability of a project. Eventual fund structures even as modest as $25 million, could galvanize project support unleashing a tsunami of $billions of cost-effective infrastructure.
We have developed operating frameworks for these investments.