Persefoni Raises $101M Series B Funding - Climate Accounting Platform

The Rise of Climate Tech and Persefoni's Series B Funding

Increasing regulatory demands are fostering opportunities for new SaaS companies, particularly within the climate technology sector. Financial institutions like asset managers and banks are now required to accurately calculate their financed CO2 emissions, adhering to standards set by the Greenhouse Gas Protocol and the Partnership for Carbon Accounting Financials (PCAF). This need has spurred growth for companies such as Plan A, South Pole, and Watershed, alongside established players like Salesforce’s Sustainability Cloud.

Persefoni Secures $101 Million in Series B

Persefoni, a Climate Management & Accounting Platform (CMAP) designed for both enterprises and financial institutions, has recently completed a $101 million Series B funding round. The company positions itself as an “ERP for Carbon Data,” offering a solution that moves away from traditional, manual, and consulting-dependent methods. This approach also avoids the use of proprietary systems that can complicate auditing processes.

Investment Details and Key Participants

Prelude Ventures and TPG’s The Rise Fund spearheaded the funding round. New investors include Clearvision Ventures, Parkway Ventures, Bain & Co., EDF Group (through EDF Pulse Holding), Sumitomo Mitsui Banking Corporation (SMBC), The Ferrante Group, Alumni Ventures Group, and New Valley Ventures. Existing investors – NGP Energy Technology Partners, Sallyport Investments, and strategic angels – also participated. Persefoni claims this is the largest Series B round for a SaaS climate tech company, though independent verification is pending.

This latest investment brings the total capital raised by Persefoni to $114.2 million.

Persefoni’s Client Base and Capabilities

Persefoni’s platform assists asset managers, banks, and other financial entities in calculating their financed emissions in accordance with established compliance methodologies. Currently, the company reports that four of the ten largest global Private Equity firms and four of the world’s twenty largest banks utilize its services.

Its customer base also extends to global insurance companies, pension funds, endowments, and corporations spanning sectors like manufacturing, agriculture, energy, apparel, retail, software, and business services.

CEO Kentaro Kawamori on the Future of Climate Accounting

Kentaro Kawamori, CEO and co-founder of Persefoni, stated: “Carbon and climate disclosures will represent the largest compliance market since the introduction of Sarbanes Oxley and GDPR, but with an even greater degree of complexity.” He further emphasized the need for transparency and trust, noting the prevalence of proprietary methodologies and the frustration this causes customers.

Recent Developments and Strategic Partnerships

Persefoni has recently formed strategic partnerships with Bain & Co., EDF (EURONEXT: EDF), and SMBC (TYO: 8316). The company has also expanded into the Japanese market and launched a free version of its core carbon accounting platform for small and medium-sized businesses (SMBs).

Additionally, Persefoni introduced a Temperature Scoring Model, enabling users to quickly assess the potential temperature rise implications of their organizational activities against 1.5C or 2C scenarios.

A Financial Ledger Approach to Carbon Accounting

According to Kawamori, Persefoni has successfully adapted principles from financial ledger technology to automate the accounting process. This eliminates the need for manual services. The company is building a channel strategy similar to that of UiPath, relying heavily on partnerships with major consulting firms.

Commitment to Transparency and Avoiding Conflicts of Interest

While Persefoni collaborates with the Patch offsetting platform, it maintains a commission-free, pass-through arrangement. Kawamori explained that recommending offsetting platforms for profit would create a conflict of interest.

He stated: “We partnered with Patch in a completely commission-free manner, as we believe combining accounting services with the sale of offsets is detrimental to scalability and auditability.”