Alternative models
In Origin ’ s case , the company needed capital to scale and grow fast , but serious investments in climate tech just weren ’ t happening 10 years ago . That didn ’ t stop Bissell and co-CEO Rich Riley from staying the course . They spent the past decade developing a “ drop-in ready ” replacement for petroleum , such as recyclable , plantbased plastics .
“ We were skating to where the puck was going to be ,” Bissell says . “ All the way along , we were the only ones out there who thought the puck was going to be there someday .”
To weigh its options , Origin hired a banker to explore private financing and SPAC financing at the same time . A SPAC is a blank-check company with no specific business plan except to finance mergers and acquisitions as an alternative route to an IPO . These types of deals used to be back-of-the-shelf financial models on Wall Street , but in 2020 they emerged as popular investment vehicles , spearheading a record year for IPOs .
The $ 78 billion raised last year by SPACs in the U . S . was more than the combined total of SPACs in all years prior and accounted for about half of 2020 ’ s record $ 177 billion IPO volume , according to Bloomberg . The SPAC boom isn ’ t a one-off either . The frenzy has continued into 2021 . Goldman Sachs strategists predict that SPACs , which emerged in the 1990s , could drive $ 300 billion in mergers and acquisitions activity over the next two years .
In a pandemic-ridden world , Bissell says , investors have a different relationship with risk . The warnings about a pandemic went unheeded for so long , and then the coronavirus hit , which has caused the world to think seriously about putting money toward companies on a mission to prevent or reverse projected disasters , including environmental ones .
“ The ramp up in urgency around climate change has been dramatic ,” Bissell says . “ It ’ s hitting just as we ’ re ready to really scale .”
Help wanted
For some companies , money is only one piece of a growth pie . For example , Cordico is a Gold River-based provider of mental health wellness solutions for first responders . The company was started by psychologist David Black , who wanted to support firefighters and public safety professionals in a post-9 / 11 world .
In 2018 , Cordico launched an app that put wellness tools and health care resources in the hands of those on the front lines of public safety . Sales have continued to skyrocket as the COVID-19 virus seized the globe , Black says . That “ astronomical growth ” put demands on Cordico ’ s talent , content and technology that he says might not have been sustainable without outside support .
In December 2020 , Cordico was acquired by Lexipol , a Texas-based provider of policy and training solutions for public safety departments . The acquisition , Black says , provides Cordico with access to marketing and sales teams , leading experts in the professions , cutting-edge technology , and strong financial support .
Scott Hanson ( left ) and Pat McClain agreed to sell controlling interest in Allworth Financial last year , but they will continue to manage the company they founded in 1993 . PHOTO COURTESY OF ALLWORTH FINANCIAL
“ As you ’ re scaling at a faster and faster pace , the need for additional resources across your organization becomes greater and greater over time ,” says Black , who is remaining as CEO . “ We are very mission-driven to help as many people serving in high-stress professions as possible … including health care workers , first responders and others who put themselves at risk to help their communities every day .”
Like Cordico , Aztec Solar , based in Rancho Cordova , saw a boost in sales despite the pandemic . Deemed an essential business , the company continued selling solar electric systems and had a 25 percent increase in revenue in 2020 , says Ed Murray , Aztec Solar ’ s CEO and president .
“ We ’ re still seeing an increase in sales this year ,” he says . “ People are still at home , using more electricity . They want to increase the value of their homes and decrease costs and have more battery storage .”
Murray started Aztec Solar in 1980 and sold it the first time in 2007 to a
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