February 21, 2024

Carbon Data and Credit Rating Startup Raises $57 Million

  • Climate tech startup Sylvera has just raised $57 million for its carbon data platform.
  • The new funds came from Balderton Capital, Fidelity Strategic Ventures, Bain & Company, and others.
  • We got an exclusive look at the restored 12-slide pitch deck he used to raise the money.

Sylvera, a startup that helps businesses invest in high-quality carbon credits, has just raised a $57 million Series B round led by Balderton Capital in Europe.

The London-based startup, founded in 2020, provides carbon data and carbon credit ratings in an effort to bring integrity to a market plagued by quality issues. One carbon credit represents 1 metric ton of carbon dioxide or its equivalent removed or prevented from entering the atmosphere.

Companies of all sizes have pledged to achieve net zero emissions, but most are away from the road. In addition to decarbonization, many companies seek to compensate for their historical or difficult-to-reduce emissions, which is where carbon credits come in. the market for carbon credits could be worth more than $50 billion in 2030, according to McKinsey.

But companies have been criticized for investing in low-quality credits, which has led to inaction and carbon projects not getting the funding they need.

“Essentially net-zero is a data problem,” Allister Furey, CEO and co-founder of Sylvera told Insider. His startup started with carbon credit rating projects and has built products that emphasize their different qualities and risk profiles. It also tracks who is using the credits to make what climate claim.

Now, Sylvera is using its underlying data to “monetize” the deal.

Its net-zero measurement and benchmarking tools show customers how they’ve progressed against sustainability goals, which the startup hopes will spur real climate action. Furey sees a future where asset managers can test the net zero of their equity and debt holdings, although it is currently not possible.

The co-founder also hopes to answer key questions about how carbon projects are provided with debt and insurance.

“We can break down the risks associated with each individual project and that can lead to insurance,” he said. “We can break down the flow of money that a project will generate and allow the banks to lend. This is about enabling that investment and encouraging investment in the best, highest quality and best opportunities low risk.”

Sylvera is currently building a pricing mechanism so customers know how much it will cost them to reach net zero, Furey added. It is a question on the mind of every business, he said. Annual $3.5 trillion over the next 30 years necessary to establish a net zero economy.

The startup works with everyone from carbon credit markets, which actually sell credits, to asset managers, banks and governments. The latter use Sylvera data to shape policy or inform credit purchases as part of the Paris Agreement’s goal of reaching net zero, Furey said.

The fresh funds will be used to expand its presence in the US. Sylvera recently opened an office in New York, where it currently has 12 employees and plans to double the number of staff by the end of the year. Former head of engineering at fintech Checkout.com and Twilio Serge Kruppa also joined the company as chief technical officer.

New investors Fidelity Strategic Ventures and 9yards also participated in the round along with existing investors Bain & Company, Index Ventures, Insight Partners, Salesforce, Speedinvest, Seedcamp, and LocalGlobe.

See the repurposed 12-slide pitch deck he used to lift the B Series below:

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