Friday Fundings: Carbon Credit Platform Pachama Snags $55 Million
Pachama is in the business of rebuilding forests, or what’s known as afforestation. Founded in 2018, the San Francisco-based startup describes itself as a nature-based carbon credit platform. It recently announced a $55 million Series B fundraising round, led by venture capital firm Future Positive.
The round was backed by investors such as talk-show host Ellen Degeneres, Reddit Co-Founder Alexis Ohanian, as well as previous investors including Bill Gates’ Breakthrough Energy Ventures. Pachama executives say the company is making the afforestation market more affordable and less fragmented, thereby enabling companies of all sizes to participate.
Selling Carbon Credits
Amid the push for carbon neutrality, many companies are interested in buying carbon credits as a way to offset their emissions. Pachama aims to codify that process by providing accurate and easy to digest data concerning forestry projects.
This type of data is considered key for companies looking to achieve net-zero emissions targets. To date, Pachama has signed up over 800 customers. Leading companies like Microsoft (MSFT), Airbnb (ABNB), Netflix (NFLX), and Salesforce (CRM) are all clients.
During its time in business, Pachama says it has worked with 46 different project developers across 14 countries. The company has also reviewed over 150 forestry projects worldwide.
Part of the funding raised in this most recent round will go toward research and development, as well as the future launch of more projects. Pachama verifies carbon credits using artificial intelligence, an area of rapid development and investment in and of itself. Executives also note some of the new funds will be earmarked for hiring additional staff.
As achieving carbon neutrality becomes a bigger part of businesses’ day-to-day operations, the companies facilitating that process may be ripe for growth.
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