Carbon data and credit rating startup Sylvera just raised $57 million as it heads to the US. Check out the 12-slide pitch deck it used to raise the fresh funds.
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- Climate tech startup Sylvera has just raised $57 million for its carbon data platform.
- The fresh funds came from Balderton Capital, Fidelity Strategic Ventures, Bain & Company, and others.
- We got an exclusive look at the 12-slide redacted pitch deck it used to raise the cash.
Sylvera, a startup helping businesses invest in high quality carbon credits, has just raised a $57 million Series B round led by Europe’s Balderton Capital.
The London-based startup, founded in 2020, provides carbon data and carbon credit ratings in an effort to bring integrity to a market plagued with quality issues. One carbon credit represents 1 metric ton of carbon dioxide or equivalent that has been removed from or prevented from entering the atmosphere.
Companies of all sizes have pledged to reach net zero emissions, but most are way off track. As well as decarbonization, many companies look to compensate for their hard-to-abate or historic emissions, which is where carbon credits come in. The market for carbon credits could be worth more than $50 billion in 2030, according to McKinsey.
But companies have been criticized for investing in low-quality credits, which has led to inaction and means carbon projects are not receiving the funding they need.
“Net zero basically has a data problem,” Allister Furey, CEO and cofounder of Sylvera told Insider. His startup started with rating carbon credit projects and has built out products highlighting their varying quality and risk profiles. It also tracks who is using what credits to make what climate claim.
Now, Sylvera is using its underlying data to “financialize” the market.
Its net zero measurement and benchmark tools show customers how they have progressed against sustainability goals, which the startup hopes will encourage real climate action. Furey sees a future where the likes of asset managers can test the net zero status of the equities and debt they are holding, though it’s currently not possible.
The cofounder is also hoping to answer key questions around how debt and insurance is provided to carbon projects.
“We can break down the risks of each individual project and that can lead to insurance, for example,” he said. “We can break down the cash flow that a project will generate and that can allow the banks to lend. This is all about enabling that investment and incentivizing investment in the best, the highest quality, and lowest risk opportunities.”
Sylvera is currently building a pricing mechanism so customers know how much reaching net zero will cost them, Furey added. It is a question on every business’ mind, he said. An annual $3.5 trillion over the next 30 years is needed to establish a net zero economy.
The startup works with everyone from carbon credit marketplaces, which actually sell credits, to asset managers, banks, and governments. The latter use Sylvera’s data to shape policy or inform credit purchases as part of the Paris Agreement’s goal to reach net zero, Furey said.
The fresh funds will be used to grow its presence in the US. Sylvera recently opened a New York office, where it currently has 12 employees and plans to double headcount by the end of the year. Former engineering lead at fintech Checkout.com and Twilio Serge Kruppa has also joined the company as chief technical officer.
New investors Fidelity Strategic Ventures and 9yards also participated in the round alongside existing investors Bain & Company, Index Ventures, Insight Partners, Salesforce, Speedinvest, Seedcamp, and LocalGlobe.
See the 12-slide redacted pitch deck it used to raise the Series B below: