The world is in a race to limit climate change! A recently published IPCC report found that global temperatures are likely to rise by more than 1.5C above pre-industrial levels in the next two decades.
Amid this threat, adapting a low-carbon economy seems like a viable solution to prevent a climate breakdown. And building a Carbon-neutral future requires innovations and massive investments. And here’s where Amsterdam fintech company Carbon Equity becomes relevant.
Secured €1.2M
Carbon Equity is one of the many startups looking to move a needle on climate change by connecting capital to climate technology. The fintech platform recently raised €1.2M in growth capital from angel investors and venture capitalists. The round was led by 4impact venture capital within six months after inception.
Pauline Wink of 4impact, says, “Carbon Equity is creating access to the world’s top climate funds by leveraging technology and a smart community approach. We are particularly impressed with Carbon Equity’s high quality, diversified and complementary team who have the passion, dedication, and network to deliver.”
Fund utilisation
The new funds will be used to accelerate the company’s growth internationally. The focus will be on recruiting the best talent to speed up customer acquisition, fund selection, and platform automation.
The latest round of funding comes a month after announcing its first fund, the high-profile 2150 Urban Tech Sustainability Fund. The company is likely to launch a new fund within the next few weeks.
Towards Carbon-neutral future
Carbon Equity was formed by a seasoned team of former investors and entrepreneurs including, Jacqueline van den Ende (former partner at VC firm Peak Capital and ex-Rocket Internet), Lara Koole (ex-Partner at Philips Ventures), Jeff Gomez (ex-Ecochain), Tim Molendijk (former founder/CTO of Smart PR, Nouncy and Journa) and Liza Rubinstein (ex-McKinsey).
The Dutch company is on a mission to accelerate the transition towards a fossil fuel-free future by investing billions of dollars in climate technology.
From a global pool of 500+ climate funds (VC, Growth, PE), Carbon Equity selects top funds based on financial and climate impact diligence.
They focus on next-generation investors, small family offices, young entrepreneurs, and top professionals who are interested in the intersection of climate and tech and want to move the needle with their money.
How does Carbon Equity work?
Carbon Equity concentrates exclusively on the private market instead of the public.
“The vast majority of innovation and transformation concerning climate change will happen in private markets,” says Jacqueline van den Ende, CEO of Carbon Equity. “At the same time, private markets are access constrained. Unless you are an ultra-high net worth individual or professional investor, you have no access to private market funds. As a result, you cannot invest in many companies that could have massive climate impact, and you are excluded from one of the largest economic opportunities of the century”.
By eradicating these barriers, Carbon Equity seeks to channel vast amounts of capital for climate investments.
“The key barrier is the sizable capital contribution,” adds Jacqueline. “Previously you would need at least €5-10M to participate in top venture capital or private equity funds. We currently bring that down to €100K”.
The company enables small ticket access to the world’s best climate funds. And they plan to lower the threshold further.
“The smaller the tickets we offer, the more people can participate and the more capital we can invest in high-impact climate companies,” Jacqueline added.
According to the Capgemini World Wealth Report, the Mass affluent market ($100K-10M) is approximately $74T.
“Currently, the private market allocation of these individuals is close to zero, versus around 16 per cent for ultra-high net worth and professional investors,” claims the company in the press release.
Carbon Equity aims to remove these barriers to participation. Consequently, the private market allocation of the Mass Affluent class will inevitably start to grow, creating a huge new capital base for private market funds.
