Climate Company Flowcarbon Has Gained $70M In A Fundraising Led By a16z

Climate Company Flowcarbon Has Gained $70M In A Fundraising Led By a16z

Flowcarbon says it secured $70 million to build a system that tokenizes carbon credits, with the goal of encouraging investment in carbon-reduction projects.

Andreessen Horowitz (a16z) led a $32 million fundraising round that includes investments from Samsung Next and Invesco. The sale of its goddess nature token brought in another $38 million (GNT).

GNT will trade on Celo, a proof-of-stake blockchain, and is backed by carbon credits granted over the previous five years from nature-based initiatives, according to Flowcarbon. To offset its own carbon emissions, the Celo Foundation acquired $10 million in GNT.

“Demand for carbon credits has surged in recent years among corporations that use them to offset carbon emissions, but the ability to scale the volume of credits available has been limited by the VCM’s opaque and fractured market infrastructure,” Flowcarbon said in a statement, referring to the voluntary carbon market.

Flowcarbon has entered a crowded market. IBM said four years ago that it was working on a carbon credit-related token alongside Veridium Labs, and other firms are also involved. Toucan, Regen, and Moss all want to make the carbon credit market more transparent and accessible. JustCarbon and Likvidi both launched carbon token exchanges early this year. The broader movement is dubbed “ReFi” (regenerative finance).

Tokenization, according to Arianna Simpson, an a16z general partner, is a “obvious solution” for helping supply of carbon offsets stay up with demand.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Hazel

CoinCu News