Climate-tech company, Patch, today announced a $55m series B funding round to accelerate the company’s ability to fulfill growing global demand for businesses to take climate action through carbon markets. Energize Ventures led the round with participation from new and existing investors including Coatue Management and Andreessen Horowitz, bringing the company’s total funding to date to $80m.
Scientific consensus from the UN IPCC shows that reaching global climate goals will require carbon removal to scale 1 million times current capacity by 2050. Patch acts at the intersection of climate and technology by powering the ability to embed, through an enterprise grade API, climate action into products and services – a critical component to achieving scale.
With Patch’s platform, businesses of any size, with any budget, can purchase carbon credits as a means of taking climate action. The transparent infrastructure is transforming a traditionally complex and opaque system for purchasing carbon credits. Patch also provides those developing the climate solutions with the infrastructure they need to grow and scale their businesses, facilitating impactful transactions on the voluntary carbon market, which is projected to become a $100bn market by 2050.
Momentum towards scaling climate action
Patch has quickly grown its team by 400% to more than 60 employees worldwide in the last 12 months and opened a European headquarters in London. This latest funding round will continue to support hiring, growth into new markets and 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.”
Over 100 corporate customers
In the last year, Patch grew its customer base five times to more than 100 companies worldwide. Below are some of those that have used Patch to build climate action into their products and services:
- Afterpay, the buy now pay later group, has integrated Patch into its system so that customers can both understand and take action to neutralise the emissions associated with their purchases.
- European investor, EQT, is using the platform to neutralise its own carbon footprint through investments in frontier technologies.
- Shop Apotheke Europe – a European e-pharmacy – used Patch to procure credits that will neutralise its emissions for the first half of 2022 as part of the company’s robust decoupling measures.
- Restaurant company Just Salad recently integrated Patch right into their mobile app, offering customers the ability to easily neutralise the carbon footprint of their lunch order with one simple swipe.