As many early-stage startup ideas are usually getting rejections from backers, that does not apply for climate change tracking software businesses, increasing overwhelmingly funding from VCs and governments – the latest trend in climate change investment.
Funding data from the last few months reveals that at least 20 startups doing something at the intersection of decarbonization and software measuring carbon footprint and progress have raised financing, mostly at seed and early stages, which shows that investors see potential for sharp growth and much higher valuations going forward.
That is also the case for the tech startup Pachama – a satellite data-enabled technology that monitors reforestation projects for carbon emissions offsets and a hot climate change company to invest in. The startup has managed to raise over $24 million so far which makes it the highest recipient of funding in the climate change software space.
Pachama shortlists high-quality forest projects for its clients that are remotely verified by them, ensuring they follow international standards for carbon credits. It offers portfolios of two to five projects that clients can buy credits from and spreads the credits out across the different projects.
According to experts, as more companies and governments declare commitments to reducing carbon emissions, the space of more accurate measurements of carbon footprint and monitoring carbon pledges is about to gain increasing popularity.
Relevant: New Tech Startup Raises $1.04 Million For Carbon Measurement
Now there is a higher interest in carbon measurement tools as the caliber of entrepreneurs is better than ever, according to Andrew Beebe, managing director of Obvious Ventures. He’s also seeing the same trend with enterprises taking on carbon accounting, along with rising demand for more sophisticated tools to help track and reduce emissions.
“We can’t manage what we can’t measure…And once you measure … Then you ask the question: What do I do now?,” said Beebe.
The scalability of carbon reduction and climate change technologies have always been an issue, however, now more than ever climate change investment is on the rise- something that could make a substantial impact in mitigating global warming.