Climate tech firm Patch secured $55 million to scale their business to meet the growing demand for climate action through voluntary carbon markets.
U.S.-based Energize Ventures led the Series B financing round with Singaporean sovereign wealth fund GIC as its new investor. Existing investors that joined include Coatue Management, Version One Ventures, and Andreessen Horowitz.
The fund will be for hiring more staff, expanding into new markets and developing Patch technology.
This latest round brings the company to a total of $80 million in funding to date.
Patch Platform: Bridging Climate & Technology
Climate scientists agreed that reaching global climate goals will need carbon removal to scale 1 million times its current capacity by mid-century.
- Removing carbon from the atmosphere is key to fighting climate change. And many businesses are looking to help fund this climate action as part of offsetting their emissions.
This is where Patch comes in, playing a crucial role in bridging climate and technology. Its platform has the ability to embed climate action into each product and service via its API.
The software allows users to build carbon removal directly into their digital products and services to deliver an automated carbon neutralizing experience.
This is ideal for e-commerce and deliveries, as well as for travel and financial service products.
It’s important to get as many firms as possible to take action to reverse climate change. But many are struggling to integrate this into their businesses.
Remarking on this, Patch CEO and co-founder Brennan Spellacy said that:
“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% of the climate change solution the world so desperately needs…”
With Patch’s platform, businesses of any size and budget can buy carbon credits to tackle their emissions.
The infrastructure transforms a traditionally complex and opaque system for buying carbon credits.
Patch gives entities seeking climate solutions the infrastructure they need to grow and scale their businesses. Its platform also helps facilitate impactful transactions on the VCM.
The market is seen to grow to $50 billion in 2030 and $100 billion by 2050.
For Tyler Lancaster of Energize Ventures who’s joining Patch board of directors, this growth makes “it one of the largest and most paramount markets of our time.”
But today’s carbon credit infrastructure is so fragmented and lacks standardization. This makes it difficult and complex to tap into, according to Lancaster. He added that:
“Patch’s platform provides a much-needed digital backbone that simplifies the transaction complexity of the carbon management ecosystem for both buyers and suppliers… It also increases transparency, and enables the carbon market to scale to meet global climate goals.”
The image below shows a snapshot of Patch carbon credit platform.
100+ Corporate Customers
For a year, Patch grew its customers 5x more to over 100 companies across all industries. They span from e-commerce to financial services.
Some of the firms that integrate climate action into their business using Patch platform include:
Afterpay: the buy now pay later group
The group said that Patch platform enables thousands of its customers to understand and take action to offset the emissions of their purchases.
European investor EQT
EQT leveraged Patch to place itself at the forefront of climate innovation. It’s using the platform to neutralize its emissions through bold investments in frontier technologies.
Shop Apotheke Europe
One of Europe’s leading e-pharmacies is also using Patch to buy credits to neutralize the firm’s emissions for the first half of 2022. This is part of the company’s robust decoupling strategies.
Restaurant company Just Salad
The food company recently integrated Patch right into its mobile app. This offers customers the ability to neutralize their order’s carbon footprint in an easy swipe.
Patch itself has grown its team very fast by 400% to over 60 employees worldwide in the last year. The tech company had opened a European headquarters in London.
The firm has been attracting top talent from leading tech companies like Shopify, Stripe, and Plaid.
Its latest funding round includes new investors such as B Capital Group, AENU, Blue Impact, Andrew Robb, Frank Slootman, GIC, and MCJ Collective.
The $55 million will put the company on track to deliver a massive climate impact worldwide.