Carbon markets-focused climate tech startup Patch, announced that it has raised $55 million, with proceeds aimed at supporting hiring, growth into new markets, and technology expansions.
The series B funding round brings the total funds raised by Patch to date to $80 million.
Demand for carbon offset projects that counteract the release of greenhouse gases, and related credits, is expected to increase significantly over the next several years, as companies and businesses increasingly launch net zero ambitions, and turn to offsets as a bridge to their own absolute emissions reduction efforts, or to balance difficult to avoid emissions. The market for carbon credits, however, is challenged by a lack of data and consistent methods to assess the effectiveness of the projects.
Patch’s platform provides transparent infrastructure aimed at enabling businesses to easily purchase carbon credits from reputable and trusted carbon removal projects. The company also provides climate solutions developers with infrastructure to scale their businesses, facilitating transactions on the voluntary carbon market.
Brennan Spellacy, CEO and co-founder of Patch, said:
“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% of the climate change solution the world so desperately needs.”
The funding round was led by sustainability-focused alternative investment manager Energize Ventures, with participation from new investors B Capital Group, AENU, Blue Impact, Andrew Robb, Frank Slootman, GIC, and MCJ Collective, and existing investors Coatue Management, Version One Ventures and Andreessen Horowitz.
Investor and Energize Ventures Partner, Tyler Lancaster, said:
“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.”