An innovative climate technology startup Patch is one step closer to scaling carbon removal practices across consumers. The company announced on September 13th that it raised $55 million in its series B funding round.
The funding round was led by US-based alternative investment manager Energize Ventures, with participation from new and existing investors including Coatue Management and Andreessen Horowitz.
“The market for carbon credits is on a trajectory to reach $50 billion in the next 10 years, making it one of the largest and most paramount markets of our time,” said Energize Ventures Partner Tyler Lancaster.
With that investment, Patch’s total funding was brought to $80 million. It will be used by the company to hire more staff, expand into new markets and develop its technology. The company also announced it is hiring both tech veterans and climate specialists in almost every area.
Patch was founded by entrepreneurs Aaron Grunfeld and Brennan Spellacy in 2020. Over the past year, its customer base grew to include more than 100 companies globally. It offers an API that can estimate the carbon emissions of people’s shopping transactions.
It also accounts for emissions from flights, rides, and shipping of those products. The platform helps customers understand how carbon-intensive common actions are. It can be used by businesses of any size or budget to enter and navigate the carbon credit market.
People can also directly purchase carbon credits to offset their emissions. According to the company, the transparent infrastructure of its system simplifies a traditionally complex process of obtaining carbon credits. Additionally, Patch offers services to help companies with developing infrastructure to facilitate transactions on the voluntary carbon market.
Patch’s latest funding round indicates the growing market interest in carbon removal tech. As more industries are looking for ways to reduce their emissions, the world witnesses a rapidly growing industry comprised of emissions reduction companies. Entrepreneurs and investors are now more induced than ever to pick their favorite decarbonization approach and look at ways to scale it globally.