Climate tech platform Patch announced this week that it has raised $55m through its latest funding round, which will be used to expand the reach of its carbon credit market platform.
The series B funding round was led by Energize Ventures and was supported by new and existing investors including Coatue Management, Andreessen Horowitz, and GIC. Following the latest investment, Patch said it has now received $80m in funding to date.
The company said the funding would support the expansion of its platform, which aims to provide a “transparent” approach that allows businesses of any size and budget to easily purchase carbon credits. The platform also aims to provide offset projects with access to the fast-expanding voluntary carbon market, allowing them to more easily access new revenue streams.
Tyler Lancaster, partner at Energize Ventures, confirmed he will be joining the board of directors at Patch. He predicted the carbon credits market is on a trajectory to reach $50bn in the next 10 years, making it “one of the largest and most paramount markets of our time”.
“However, today’s carbon credit infrastructure is highly fragmented and lacks standardization – making it difficult and complex to tap into,” he added. “Patch’s platform provides a much-needed digital backbone that simplifies the transaction complexity of the carbon management ecosystem for both buyers and suppliers, increases transparency, and enables the carbon market to scale to meet global climate goals.”
Patch said the new funding came at a time when its client base is rapidly expanding, with the firm now working with more than 100 companies worldwide, including After Pay, EQT, and Apotheke Europe.
In addition, Patch said it has also recently started working with restaurant company Just Salad on its mobile app, allowing its customers to neutralize the carbon footprint of their lunch order directly through the app.
“We are at a crucial pivot point, and it’s essential we get as many companies as possible taking action to reverse climate change, but many struggle with how to integrate this action into their business,” said Brennan Spellacy, chief executive and co-founder of Patch.
“At Patch, we are changing that. Our infrastructure lowers the barrier to entry for both businesses and climate project developers looking to enter the carbon market which, in turn, could help unlock 20 percent of the climate change solution the world so desperately needs .”
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