Ecologi Raises $8M to Expand Carbon Offset Platform | GreenTech

The Rise of Carbon Offset Subscriptions: A Look at Ecologi

Considering the prevalence of subscription models for music and other services, the concept of subscribing to carbon offsetting as a means of addressing climate change concerns gains traction. This idea forms a core principle behind U.K.-based startup Ecologi.

Ecologi's Approach to Carbon Reduction

Ecologi directs received funds towards initiatives such as planting trees – achieving a rate of 1 million trees every 10 days – in regions like Africa and Latin America. Furthermore, the company invests in projects focused on preserving vital ecosystems like Indonesian peatlands. This process effectively diminishes an individual’s carbon footprint through the purchase of carbon offsets aligned with their consumption habits.

Recent Investment and Valuation

In April, Ecologi successfully completed a seed funding round, securing $5.75 million (£4.05 million). This investment, led by General Catalyst and including Entrée Capital, valued the company at £16.5 million pre-money.

Subscription Model and Growth

The subscription service, currently utilized by 35,000 individuals and businesses, empowers members to actively “grow their own forest” by funding the planting of at least 12 trees each month. This directly offsets their carbon emissions by supporting a diverse portfolio of carbon-reducing projects.

Transparency and Public Accountability

Founded in 2019 and initially self-funded, Ecologi distinguishes itself through radical transparency. All company records, including receipts, certificates, board meeting minutes, and financial statements, are publicly accessible on a dedicated ledger.

Crowdfunding Success and Future Expansion

The company has now reached a pre-money valuation of £75 million, significantly exceeding its £2 million crowdfunding goal on the U.K.’s Crowdcube platform. These funds will be allocated to product development, team expansion, and strategic growth within the U.S. and EU markets. Ecologi is also currently pursuing B-Corp certification.

Introducing Ecologi Zero

Early 2022 will see the launch of Ecologi Zero, a real-time carbon footprinting software specifically designed for businesses.

Competitive Landscape

This new offering will position Ecologi in direct competition with existing carbon footprinting SaaS companies, including Normative, Spherics, and Plan A, among others.

Impressive Growth Metrics

Ecologi reports experiencing growth exceeding 650% over a nine-month period. Furthermore, its impact in terms of carbon reduction has increased by 330% in the last year. January 2021 saw an annual recurring revenue (ARR) of £3.0 million, with projections indicating £8.5 million ARR by year-end.

Environmental Impact to Date

To date, the company claims to have planted over 25 million trees and offset 1.2 million tonnes of CO2 emissions. The majority of tree planting efforts have been concentrated in Madagascar, Mozambique, Nicaragua, the United States, Australia, the U.K., and Kenya. Recent projects have included peatland conservation in Indonesia and energy generation from landfill gas in Turkey and rice husks in India.

CEO Statement on Community Ownership

Elliot Coad, CEO and co-founder, stated: “Community ownership is central to our operations and has fueled our growth over the past two years. Therefore, we believed it was appropriate to offer our dedicated subscribers the opportunity to invest in Ecologi. Following GC’s investment in April, we proactively declined venture capital offers in favor of a community-driven crowdfunding initiative.”