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Carbon Equity secures €1.8 million to accelerate climate tech innovation by bringing private impact investing to everyone
Carbon Equity enables retail investors to power the world’s most impactful climate technology companies with their capital
The platform allows regular investors to invest alongside world-renowned climate investing experts in top climate venture capital (VC) and private equity funds with minimums as low as €100,000, and soon €10,000
The capital will be used to scale customer acquisition, obtain a full AIFMD license, expand internationally and grow its investment app.
AMSTERDAM, July 14, 2022 — Carbon Equity, the world’s first private market climate investing platform, announced its oversubscribed seed round of €1.8 million. The round was led by 4impact with the participation of German-based WiVenture and AENU, plus a group of experienced angels including the founders of Bloomon and sustainable aviation pioneer, SkyNRG.
“I have two core beliefs,” says Jacqueline van den Ende, Co-founder and CEO at Carbon Equity. “The first is that if we don’t solve climate change, nothing else matters. The second is that money decides the shape of our future. So we started Carbon Equity with the question, ‘how do we move the needle on climate change?’ We saw trillions moving into ESG stocks through incumbents and fintechs alike. But if you buy say a stock of Tesla, nothing much changes in the real economy. Our observation is that if you really want to have an impact (i.e. move the planet from state A to B), you can have a lot more impact investing in private markets where capital directly powers innovation and growth of new technologies.”
Carbon Equity enables retail investors to power the world’s most impactful climate technology companies with their capital. The platform allows regular investors to invest alongside world-renowned impact investing experts in top climate venture capital (VC) and private equity funds.
“By investing in a VC fund, you benefit from the expertise of top climate investing experts who invest in companies with a strong focus on innovation — plus, you gain greater diversification since you invest in a basket of companies instead of just one company,” says van den Ende. The risk profile of this type of investing is, therefore, a lot lower than that of angel investments or crowd equity.”
By democratizing VC impact investing, which was previously only accessible to professional investors or ultra-wealthy individuals, Carbon Equity seeks to unlock and connect investor capital towards climate innovations at scale. In doing so, its vision is to grow a highly motivated community of investors ready to fight climate change with their capital.
“The key barrier is the sizable capital contribution,” says van den Ende. “Previously, you would need at least €5-10mn to participate in top venture capital or private equity funds. We currently bring that down to €100K, and will launch a retail program in the coming months that unlocks access from €10K.”
You can now become part of the waitlist to invest under 100K here.
The climate investing market is booming with a total of $87.5bn invested over H2 2020 and H1 2021. According to PwC’s State of Climate Tech report, climate tech now accounts for 14 cents of every venture capital dollar. “In the coming decade, you will see huge demand for CO2-free alternatives from consumers, companies and governments,” according to van den Ende. “This is driving a historically large wave of innovation across all sectors. By investing in Carbon Equity funds, you can put your capital to work with real impact, but also exceptional financial returns.”
Over the past 9 months, Carbon Equity invested in venture capital and growth equity funds including Astanor, Energy Impact Partners and 2150 VC. These funds power incredible companies such as Form Energy (that produces grid-scale batteries), Zap Energy (who recently successfully tested their prototype fusion reactor), or Umiami (who produce plant-based whole cuts using an innovative fermentation technology).
The Carbon Equity app allows you to track every move of these portfolio companies.
The funding follows a strong period of growth for Carbon Equity, which saw the company increase its AUM by 10x and customer base by 11x since its prior round of funding in 2021. The new capital will allow Carbon Equity to launch its retail investing program, further expand its investor base and scale up its technology platform.
According to Pauline Wink of 4impact, Carbon Equity sits at the intersection of tech and climate change. “Carbon Equity is unlocking a huge pool of retail capital which is directed towards climate change innovation via its fintech platform. They have shown strong product-market fit and have received positive feedback from clients and funds. We’re incredibly excited to continue to support the exceptionally strong team, who are passionate thought leaders in the field of climate tech investing.
In addition to closing its seed round, Carbon Equity announced its Climate Tech Growth Fund. By investing in its Climate Tech Growth Fund, everyday investors can invest alongside the investment and impact experts of leading European private equity firms. This enables individuals to invest in and scale climate companies that already have proven impact, customers and revenue, which means lower technology and business model risks.
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Any information presented on this website does not constitute, and under no circumstances shall this information be deemed or construed to be a prospectus, an offer to sell, or the solicitation of an offer to buy or subscribe for an interest in the feeder funds or fund of funds of Carbon Equity B.V. “Funds”, unless clearly indicated otherwise. No part of this information or the fact that of its distribution should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever.
The issue and distribution of any information on this website may be subject to statutory or other restrictions in certain jurisdictions. Carbon Equity B.V. requests that individuals taking possession of this information familiarise themselves with and comply with those restrictions. Carbon Equity B.V. rejects liability for any violation of any such restriction by anyone whomsoever, regardless of whether that individual is a potential investor. This website in itself does not entail any offer of any security or an invitation to make an offer to purchase any security to any individual in any jurisdiction where such is not permitted according to the applicable law and regulations.
The Funds of Carbon Equity B.V. will only be offered to potential investors at a later stage pursuant to fund documentation to be prepared and distributed by Carbon Equity B.V., through a dedicated account environment and clearly indicated as such. Any person should note that the Carbon Equity B.V. Funds will eventually exclusively be offered by Carbon Equity B.V. to potential investors in permitted jurisdictions who commit to an initial investment of at least EUR 100,000 or fall under other applicable exemptions. Carbon Equity B.V. will act as the Alternative Investment Fund Manager (AIFM) of the Funds and will benefit from the Dutch sub-threshold regime, pursuant to article 2:66a of the Dutch Financial Supervision Act (Wet op het financieel toezicht).
As such, the Carbon Equity B.V. will benefit from an exemption from the license requirement and ongoing requirements of the AIFMD. Moreover, no prospectus requirement applies in light of article 1(4)(d) of the Prospectus Regulation. Any Funds and Carbon Equity B.V. will therefore fall outside the scope of supervision of the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, AFM) and the Dutch Central Bank (De Nederlandsche Bank, DNB)
Carbon Equity does not make investment recommendations and no communication, through this website or in any other medium should be construed as a recommendation for any security offered on or off this investment platform. Alternative investments in private placements, and private equity investments via feeder funds in particular, are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Prospective investors should carefully consider the risk warnings and disclosures for the respective fund or investment vehicle set out therein. The value of an investment may go down as well as up and investors may not get back their money originally invested. Past performance is not necessarily a guide to future performance. An investment in a fund or investment vehicle is not the same as a deposit with a banking institution. Please refer to the respective fund documentation for details about potential risks, charges and expenses. Additionally, investors will typically receive illiquid and/or restricted membership interests that may be subject to holding period requirements and/or liquidity concerns. In the most sensible investment strategy for venture capital investing, venture capital should only be a part of your overall investment portfolio. Further, the venture capital portion of your portfolio may include a balanced portfolio of different venture capital funds. Investments in venture capital are highly illiquid and those investors who cannot hold an investment for the long term (at least 10 years) should not invest.