Sylvera, a prominent carbon data provider, has successfully raised $57 million in a Series B funding round. The funding will be used to incentivize companies to invest in real climate impact through carbon credits and to expand the company’s operations in the United States. The funding round was led by Balderton Capital, with participation from new investors Bain & Company, Fidelity Strategic Ventures, and 9Yards Capital, as well as existing investors Index Ventures, Insight Partners, Salesforce Ventures, Speedinvest, Seedcamp, and LocalGlobe.
Achieving the goal of net zero emissions by 2050 is crucial in order to prevent catastrophic climate-related disasters. However, without significantly increasing efforts to reduce emissions, it will be impossible to reach this target. Additionally, the world needs to remove approximately 10 Gigatonnes of CO2 from the atmosphere annually by 2050. Meeting these net zero goals requires an annual capital investment of around $3.5 trillion over the next three decades. This funding is necessary to develop infrastructure and scale up technologies that are essential for a zero-carbon economy, including carbon credits.
High-quality carbon credits play a vital role in supporting projects around the world, such as reforestation and renewable energy deployment. They offer a scalable way to drive climate finance where it is most needed. However, both climate actions and funding are currently insufficient to keep pace with the net zero deadline. Furthermore, tracking progress against climate targets and measuring the climate impact of investments is challenging due to a lack of data. This is where Sylvera comes in. The London-based carbon rating agency, founded in 2020, is changing the landscape by providing technology that ensures funding goes to projects, companies, and countries that have the maximum climate impact, thereby helping the world stay on track for net zero. This data will eventually create much-needed financial incentives, such as higher share prices and cheaper borrowing, for organizations taking significant net zero action.
Sylvera helps companies and governments invest in carbon credits and confidently report on their impact. The company utilizes cutting-edge technology and carbon measurement methodologies to assess climate action investments, including carbon credits, and provide ratings. Its data infrastructure and carbon intelligence enable companies to confidently reach their net zero goals and contribute to global net zero efforts. Last week, Sylvera, in collaboration with Pachama, published a carbon market trend report that highlights the most significant trends shaping the carbon market landscape in 2023 and beyond.
Sylvera’s software impartially and accurately assesses carbon projects that capture, remove, or avoid emissions, ensuring that organizations are investing effectively in real climate impact. The company combines technology and climate science to develop and test rigorous methodologies for rating projects and generating data. Its unique platform, powered by machine learning, facilitates the creation of new sustainable investment products and educates investors on the quality of carbon credits. Daniel Waterhouse, a partner at Balderton Capital, emphasized the role of Sylvera and its innovative carbon rating, stating that the company has proven to be a market leader and they are excited to join them in accelerating the roll-out of data, tools, and software to combat damaging climate change.
Sylvera’s rating system evaluates carbon credits based on four core scoring pillars: carbon, additionality, permanence, and co-benefits. The carbon rating process typically takes between 60 to 120 hours, depending on the complexity of the project. It involves several steps to ensure accurate assessment and reporting.
The $57 million investment will enable Sylvera to further develop its platform and technology, producing robust data crucial for climate action investment decisions. The funding will also support the company’s expansion into the United States, with a new office in New York, a global hub for financial services. This strategic move will help Sylvera expand its network. Currently, the company has 12 employees in the U.S., and this number is expected to double by the end of the year. Since announcing its Series A funding in January of last year, Sylvera’s customer base has grown sevenfold, including the addition of more Fortune 500 clients. The Series B round brings the company’s total fundraising to over $96 million. Sylvera serves major financial services providers, governments, and infrastructure suppliers, and has established partnerships with companies like S&P Global.