CarbonCure Technologies
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The carbon offset API developer Patch confirms a $4.5 million round led by Andreessen Horowitz
Patch, the carbon offset API developer, has raised $4.5 million in financing to build out its business selling customers a way to calculate their carbon footprint and identify and finance offset projects that capture the equivalent carbon dioxide emissions associated with that footprint.
Confirming TechCrunch reporting, Andreessen Horowitz led the round, which also included previous investors VersionOne Ventures, MapleVC and Pale Blue Dot Ventures.
Patch’s application protocol interface works for both internal and customer-facing operations. The company’s code can integrate into the user experience on a company’s internal site to track things like business flights for employees, recommending and managing the purchase of carbon credits to offset employee travel.
The software allows companies to choose which projects they’d like to finance to support the removal of carbon dioxide from the atmosphere, with projects ranging from the tried and true reforestation and conservation projects to more high-tech early-stage technologies like direct air capture and sequestration projects, the company said.
Patch founders Brennan Spellacy and Aaron Grunfeld, two former employees at the apartment rental service Sonder, stressed in an interview that the company’s offset work should not be viewed as an alternative to the decarbonization of businesses that use its service. Rather, they see Patch’s services as a complement to other work companies need to do to transition away from a reliance on fossil fuels in business operations.
Patch co-founders Brennan Spellacy and Aaron Grunfeld. Image Credit: Patch
Patch currently works with 11 carbon removal suppliers and has plans to onboard another 10 before the end of the first quarter, the company said. These are companies like CarbonCure, which injects carbon dioxide into cement and fixes it so that it’s embedded in building materials for as long as a building lasts.
“Carbon removal credits can help to dramatically accelerate the deployment of technologies like CarbonCure’s, which are absolutely critical to helping us reach our global climate targets. Demand for high-quality, permanent credits is sky-rocketing, and listing credits on Patch will help us to attract a broader range of buyers,” said Jennifer Wagner, president of CarbonCure Technologies, in a statement.
It also has around 15 customers already using its service, according to earlier TechCrunch reporting. Those buyers include companies like TripActions and the private equity firm EQT, which intends to extend the integration of Patch’s API from its own operations to those of its portfolio companies down the road, according to Spellacy.
Grunfeld said that the company would be spending the money to hire more staff and developing new products. From its current headcount of six employees, Patch intends to bring on another 24 by the end of the year.
As the company expands, it’s looking to some of the startups providing carbon emissions audit and verification services as a channel that the company’s API can integrate with and sell through. These would be businesses like CarbonChain, Persefoni and another Y Combinator graduate, SINAI Technologies.
“An increasing number of businesses are taking leadership positions in an effort to reduce emissions to try to counteract global warming,” said Jeff Jordan, managing partner at Andreessen Horowitz. “Patch makes it much easier for companies to add carbon removal to their core business processes, aggregating verified carbon-removal supply and offering turn-key access to it to companies through an easy-to-implement API.”
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2150 launches with $240M fund to reduce the carbon footprint of the world’s growing cities
A new VC fund, 2150, is launching with the first close of a €200 million ($240 million) fund which will back technologies aimed largely at reducing the carbon footprint of cities. For example, startups that inject carbon into concrete, or monitor the energy of buildings. The final close is anticipated by mid-2021.
The advisory board for 2150 includes the former chief sustainability officer in the Obama administration, as well as renowned urbanist and academic, Richard Florida. 2150 is based around the idea that half of the world’s population lives in cities, and this will increase to two-thirds by 2050, creating a growing environmental impact that the world can ill-afford, given the climate crisis.
Based across London, Copenhagen and Berlin, the fund’s limited partners include a mix of institutional capital and family offices, including Chr. Augustinus Fabrikker, Denmark’s Green Future Fund and Novo Holdings. 2150 says it has other LP partners who are building or managing “over 16 million square meters of real estate”, who will come in handy, kicking the tires on the efficacy of 2150 investments. The anchor funding has come from NREP, a sustainable real estate fund manager with a large Northern European footprint and platform.
The founding partners include Mikkel Bülow-Lehnsby, chairman and co-founder of large real estate logistics company NREP; Jacob Bro, former chief product officer at Rocket Internet; Christian Jølck, the founder and former chairman of industry climate advocacy group SYNERGI; Christian Hernandez, former Facebook executive and VC; Nicole LeBlanc, formerly with Alphabet’s urban product incubator Sidewalk Labs; Rahul Parekh, founder of VC-backed food tech startup EatFirst and former executive director at Goldman Sachs; and Alexandra Perez, who incubated and launched urban tech startups at Tech City Ventures.
2150 will focus on startups that can make cities more resilient, efficient and sustainable, investing in tech associated with the urban environment, materials, automation and sensor-based monitoring to improve the health, safety and productivity of building occupants. It says it will only invest where sustainability impact can be measured, aiming for a first portfolio of around 20 companies. Ticket sizes will be €4-5 million Series A for startups, but it will also invest in existing companies that want to expand.
Its first investment is in CarbonCure Technologies — a Canadian company lowering the CO2 footprint of concrete — in which 2150 participated in a funding round last year, investing alongside Amazon’s Climate Pledge Fund, Bill Gates-backed Breakthrough Energy Ventures and Microsoft’s Climate Innovation Fund. At present, concrete accounts for 8% of all global CO2 emissions
Speaking to TechCrunch, Hernandez said 2150 was particularly interested in what’s coming to be known as “ESG Analytics” or “Carbon Accounting”. In other words, platforms that can analyze the impact of developments for an ESG and CO2 perspective.
The other background data which inspired the creation of the fund includes the fact that two billion new homes will need to be built over the next 80 years; cities consume over two-thirds of the world’s energy and account for more than 70% of global CO2 emissions; 13% of global GDP is spent on construction, but the industry is slow to adopt new technology; and the UN has said ground-breaking innovation is needed in cities, where the battle for sustainable development will be “won or lost”.
Mikkel Bülow-Lehnsby, partner at 2150 and chairman and co-founder of NREP, said: “With NREP we have been on a 15-year mission of making real estate and cities more efficient, customer-centric and sustainable. With 2150 we are leveraging all of NREP’s learnings and ambitions and partnering with our industry peers to identify and accelerate technology that can help us support our purpose of making real estate better. I am convinced that 2150’s mission-aligned team will play an important role in designing a future in which the convergence of entrepreneurship, technology and sustainability will reverse the built environment’s negative impact on the planet.”
Christian Hernandez, Partner at 2150, said: “Cities are complex living systems that are constantly expanding, evolving and adapting, with half the world’s population now living in urban environments and rising. Cities, while vehicles for the betterment of humanity, currently emit 70% of the world’s greenhouse gases and generate the vast majority of the planet’s waste. We see a huge opportunity to make a serious impact on the way cities are developed and the way our citizens live, work and are cared for by completely reimagining and reshaping the urban environment for good.”
The advisory board for 2150 includes technologists, scientists and designers, including well-known architect Bjarke Ingels; the director of Princeton’s Andlinger Center for Energy and the Environment, Dr. Lynn Loo; Unity’s head of AI, Danny Lange; the former chief sustainability officer in the Obama Administration, Christine Harada; and the founder of sustainable developer EDGE Technologies, Coen van Oostrom.
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