Cloverly Announces $19M Series A Funding Round and Validation of the New Voluntary Carbon Market Supplier Platform
Cloverly, a technology powered climate action platform, today announced that it has raised a $19 million Series A funding round. The investment was led by Grotech Ventures, a leading global technology investor, and joined by other leading firms including Aquiline Technology Growth, Impact Engine, Mission One Capital, New Climate Ventures, and CreativeCo Capital, and supported by existing investors including Tech Square Ventures, SoftBank Opportunity Fund, Circadian Ventures, Knoll Ventures, SaaS Ventures, and Panoramic Ventures. This financing will fund the further development of Cloverly's industry-leading digital infrastructure for the voluntary carbon markets, including the new supplier platform, helping buyers, suppliers, and nearly any other company to easily scale their impact. The Series A will also support tripling Cloverly's team and launching a second headquarters in London in order to accommodate global customer demand.
Innovation Within a Critical Industry
According to the Intergovernmental Panel on Climate Change (IPCC), "The deployment of carbon dioxide removal (CDR) to counterbalance hard-to-abate residual emissions is unavoidable if net zero CO2 or GHG emissions are to be achieved." The voluntary carbon market (VCM) represents a critical mechanism for driving immediate climate action by addressing unavoidable emissions today in parallel to the large-scale emissions reductions required to avert climate change in the future. In order to reach global emissions targets, the National Academy of Sciences states that an additional 10 billion tonnes of carbon dioxide must be removed annually by 2050. This pressing need is fueling incredible growth for these markets, expected to reach between $50 billion dollars by 2030 according to McKinsey and the Taskforce on Scaling Voluntary Carbon Markets. However, despite the growth and urgency, the VCM lacks many of the fundamental elements required to drive meaningful impact at scale.
Cloverly has been addressing these problems surrounding access, ease, trust, and transparency since its inception as the first API in the world for carbon credits and the company has grown to become the leading digital infrastructure powering the VCM, partnering with global leaders such as American Express, Salesforce, Visa, more. Businesses can quickly scale their climate action by directly purchasing quality carbon removals or by embedding the Cloverly technology into their own products, services, or supply chains. Project suppliers can also scale by leveraging the Cloverly Marketplace™ as well as Cloverly's supplier software that enables them to manage critical commercial operations such as inventory management, multi-channel distribution, and the tracking of credit sales. The new supplier platform offers credits from innovative suppliers such as Tradewater, Therm, KOKO Networks, CarbonCure.
"Cloverly has been such a strong champion as we look to scale our distribution of carbon credits," added Rahul Misra, CarbonCure's Head of Carbon Product and Operations. "The value they provide both by showcasing our solution and via their genuine partnership is important as we navigate the very dynamic voluntary carbon market and engage with a diverse range of credit buyers."
The Market Demand
Consumer spending data supports not only the environmental imperative to scale climate change but also the public demand to incorporate sustainable choices into our lives. A 2022 NielsenIQ report shows 30% of consumers are more likely to purchase sustainable products and a 2022 report from the Wharton School of Business highlights that two thirds of consumers are willing to pay more for sustainable products. Incorporating climate action into user experiences and product roadmaps is one of the greatest opportunities businesses can leverage to meet this proven market demand.
"We cannot wait - we need to act now," shared Jason Rubottom, CEO of Cloverly. "The importance of the voluntary carbon market demonstrates an unprecedented demand for solutions that allow both businesses and consumers to actively contribute to critical climate action. Cloverly is uniquely positioned to facilitate that engagement and this funding round represents that."
"Through our due diligence, we spoke to many of Cloverly's customers. We were struck by the passion they had for Cloverly's product and team," recalled Lawson Devries, general partner at Grotech Ventures. "It became clear that Cloverly has not only established itself as a global leader in a large market but that they were bringing real value to their stakeholders and positively impacting the larger fight against climate change. We are excited to be a part of that."
"It has been remarkable to watch Cloverly evolve since its seed round," reflected Vasant Kamath of Tech Square Ventures, the original lead investor in the company. "Seeing both the product and team rapidly grow into a world-class player in just a few short years is a testament to their continued innovation to meet this critical market need."