Last week, female-led climate tech startup tozero, raised €3.5 million to recycle lithium-ion batteries. Close on the heels of this round, Patch, a climate tech startup based in the US, has picked up $55 million in a Series B funding round.
The investment round was led by Energize Ventures along with participation from new and existing investors, including Coatue Management (which backed Kurtosis and OneSignal) and Andreessen Horowitz. This round brings the total funding raised by the company to $80 million.
Aspirational growth plans
This latest funding round will continue to support Patch in its hiring spree and enable it to grow into new markets. It will also help in the development of an expanding technology footprint, putting the company on track to deliver massive climate impact across the globe.
“The market for carbon credits is on a trajectory to reach $50 billion in the next 10 years, making it one of the largest and most paramount markets of our time,” said Energize Ventures Partner Tyler Lancaster, who joins the Patch board of directors. “However, today’s carbon credit infrastructure is highly fragmented and lacks standardisation – making it difficult and complex to tap into. 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.”
“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, CEO, 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% of the climate change solution the world so desperately needs.”
Scaling the carbon removal industry
Patch was founded by Aaron Grunfeld and Brennan Spellacy in 2020 in San Francisco. It is on a mission to reach giga-tonne scale carbon sequestration. With an API and a marketplace that enables companies to seamlessly purchase as little as a gram to giga-tonnes of carbon removal from reputable and trusted carbon removal projects, Patch enables people and businesses take action against climate change.
With Patch, companies can embed climate action into their own products, neutralising the carbon impact of everyday transactions like shipping, travel, and financial services. Companies can compensate for emissions within their own operations and supply chain using Patch. It is the platform for businesses and consumers to seamlessly take meaningful climate action.
The transparent infrastructure is transforming a traditionally complex and opaque system for purchasing carbon credits. Patch also provides the infrastructure needed to grow and scale their businesses, facilitating impactful transactions on the voluntary carbon market, which is projected to become a $100B market by 2050.
Patch has quickly grown its team by 400 percent to more than 60 employees worldwide in the last 12 months and opened a European headquarters in London.
