Amsterdam, The Netherlands - Carbon Equity, the first fintech platform for alternative climate investing globally, has 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.
About Carbon Equity
Carbon Equity seeks to unlock the trillions of capital sitting idle in retail bank accounts for high impact climate investments. The recently published IPCC report, the world’s leading authority on climate science, underscores the urgency of the climate crisis. It found that temperatures are likely to rise by more than 1.5C above pre-industrial levels in the next two decades, with only a rapid and drastic shift to a low-carbon economy being able to prevent a climate breakdown. For this we need change, innovation and massive investments.
Carbon Equity was founded 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).
Carbon Equity is unique in that it focuses exclusively on private markets instead of public markets.
“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 hurdles to private market climate investing (including capital, regulatory, knowledge and network hurdles), Carbon Equity seeks to channel vast amounts of capital for climate investments.
“The key barrier is the sizable capital contribution” says Jacqueline van den Ende. “Previously you would need at least EUR 5-10mn to participate in top venture capital or private equity funds. We currently bring that down to EUR 100k”. Carbon Equity plans to lower the threshold further soon. “The smaller the tickets we offer, the more people can participate and the more capital we can invest in high impact climate companies”.
Carbon Equity is tapping into a big market opportunity servicing ‘the next generation of investors’ looking for returns and climate impact. According to the Capgemini World Wealth Report the Mass affluent market (USD 100k-10mn) is approximately USD 74 trillion. Currently the private market allocation of these individuals is close to zero, versus around 16% for ultra high net worth and professional investors. As Carbon Equity removes barriers to participation, the private market allocation of the Mass Affluent class will inevitably start to grow, creating a huge new capital base for private market funds. At the same time investors increasingly understand that their money has real potential to move the needle on climate change, driving increasing demand for climate impact investments.
4impact on Carbon Equity
According to Pauline Wink of 4impact, Carbon Equity has a big role to play in the democratisation of alternative climate investments. “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 complimentary team who have the passion, dedication and network to deliver. We are excited to be backing this strong team as they establish a prominent new impact fintech.”
The new funds will be used to accelerate the company’s development internationally. The focus will be on recruiting the best talent to speed up customer acquisition, fund selection and platform automation. Carbon Equity launched its first fund, the high-profile 2150 Urban Tech Sustainability Fund, in July 2021 and will announce a new fund within the next few weeks. “We are excited to work together with the high-quality strategic angels and 4impact, to rapidly grow our business and democratise private market climate investing”.