Zurich-based CarbonPool, set to be the world’s first insurance company with a carbon credit balance sheet, has closed a CHF 10.5M (approximately €11.24M) in a seed round of funding. The funding round was jointly led by Heartcore Capital and Vorwerk Ventures, with participants including HCS Capital, Revent Ventures, and notable figures such as former Allianz management board members Axel Theis and Christof Mascher.
Christian Jepsen, a founding partner at Heartcore, highlights the untapped potential of insurance in carbon trading, a sector that desperately needs the credibility and financial controls established financial institutions can provide. CarbonPool’s innovative approach is set to bring much-needed professionalization to this sector.
The Unique Offering
Founded by former Allianz executives Coenraad Vrolijk, Nandini Wilcke, and Frederic Olbert, CarbonPool aims to accelerate investment in carbon credits, crucial for achieving net zero, by providing carbon credit insurance with claims payments made in-kind. This unique approach addresses the volatility in the carbon credit market and ensures the integrity and risk underwriting of credits.
Addressing Industry Challenges
CarbonPool is actively pursuing an insurance license in Switzerland and offering assessments to clients, including corporations and investors. The company is engaging with government bodies like the United Nations and the State of California to address industry challenges, particularly the permanence of carbon removals, through insurance solutions.
Vorwerk Ventures, a €150M VC fund, and Heartcore Capital, with nearly €770M in committed capital, back over 100 founding teams across Europe. Their investment in CarbonPool reflects their commitment to sustainable business models and innovative solutions in climate and financial infrastructure.
With this significant seed funding, the startup is well-positioned to make a substantial impact in the carbon credit market, offering a novel solution that combines the security of insurance with the urgency of carbon credit investments.