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
The latest funding round allows the company to hire more workers and enter new markets. It also allows them to develop a larger technological presence, which will greatly impact the climate on a global scale.
Energize Ventures Partner Tyler Lancaster said that the carbon credit market is set to be one of the largest and most important markets in history. He added that its current state is fractured and non-standardized, making it difficult to tap into. However, he claimed that Patch’s platform would provide a much needed digital backbone for the carbon credit ecosystem. This would reportedly simplify the transactions between buyers and sellers, increase transparency and enable the market to grow in size in order to meet global climate goals.
CEO and co-founder Brennan Spellacy stated, “The world is at a crucial turning point. It’s crucial that many businesses take action to reverse climate change. However, many struggle with implementing climate action into their business— but not Patch. Our infrastructure lowers the entry barrier for both businesses and developers of climate projects looking to enter the carbon market. This could potentially unlock up to 20% of the world’s climate change solution— something the world desperately needs.”
Scaling The Carbon Removal Industry
Patch was started by Brennan Spellacy and Aaron Grunfeld in San Francisco in 2020. The company’s name is an acronym for Partnership to Add Remediation to Agriculture. It aims to provide giga-tonne sized carbon sequestration via trusted carbon removal projects. Patch also provides a Marketplace and API that allows people and businesses to purchase small amounts of carbon removal— as little as a gram— in an easy fashion.
By using Patch, businesses and consumers can seamlessly integrate climate change action into their daily lives. This platform allows them to compensate for the carbon emissions created by their activities— such as traveling, shipping or using financial services — without significant effort. Additionally, Patch allows companies to incorporate climate action into their products so that emissions produced by everyday transactions can be offset.
Patch creates a transparent infrastructure for the traditionally opaque and complicated purchase of carbon credits. By providing the necessary systems for businesses to grow and scale, Patch enables significant transactions on the voluntary carbon market projected to be worth $100 billion by 2050.
In the last year, Patch
reased their employee count from 12 months ago by 400%. They opened a London based headquarters for their European operations.