Patch Secures $4.5 Million to Expand Carbon Offset API

Patch, a developer specializing in carbon offset APIs, has successfully raised $4.5 million in a funding round. This capital injection will be utilized to enhance the company’s offerings, enabling customers to accurately assess their carbon footprint and invest in projects designed to neutralize equivalent carbon dioxide emissions.

Investment Details

The funding round was spearheaded by Andreessen Horowitz, validating previous reports from TechCrunch. Existing investors, including VersionOne Ventures, MapleVC, and Pale Blue Dot Ventures, also participated in this financing initiative.

API Functionality and Integration

Patch’s application programming interface (API) is designed for versatile implementation, supporting both internal and external applications. The company’s code facilitates seamless integration into a company’s digital platforms. This allows for tracking emissions-generating activities, such as employee travel, and subsequently managing the procurement of carbon credits for offsetting purposes.

Carbon Offset Project Selection

The software empowers organizations to select specific projects aligned with their sustainability goals. These projects encompass a diverse range of carbon dioxide removal strategies. Options include established methods like reforestation and conservation efforts, alongside innovative technologies such as direct air capture and carbon sequestration.

Complementary Approach to Decarbonization

Founders Brennan Spellacy and Aaron Grunfeld, both formerly with Sonder, emphasized that carbon offsetting should not be considered a substitute for comprehensive decarbonization efforts. Instead, Patch’s services are intended to function as a supportive element to broader initiatives aimed at reducing reliance on fossil fuels within business operations.

Expanding Supplier Network

Currently, Patch collaborates with 11 carbon removal suppliers. The company intends to expand this network by onboarding an additional 10 suppliers before the conclusion of the first quarter.

These suppliers include companies like CarbonCure, which specializes in injecting carbon dioxide into concrete, permanently embedding it within building materials.

Industry Perspective on Carbon Removal

Jennifer Wagner, president of CarbonCure Technologies, stated that “Carbon removal credits can significantly accelerate the adoption of technologies like CarbonCure’s, which are vital for achieving global climate objectives. The demand for high-quality, lasting credits is rapidly increasing, and offering these credits through Patch will broaden our reach to potential buyers.”

Current Customer Base

Patch presently serves approximately 15 customers, as reported by TechCrunch. Notable clients include TripActions and the private equity firm EQT, which plans to integrate Patch’s API across its portfolio companies.

Future Growth and Development

Aaron Grunfeld indicated that the newly acquired funds will be allocated towards expanding the team and developing new product features. Patch aims to increase its workforce from six to 24 employees by year-end.

Strategic Partnerships

As the company grows, it is exploring partnerships with startups specializing in carbon emissions auditing and verification services. Potential collaborators include CarbonChain, Persefoni, and SINAI Technologies, offering channels for API integration and sales.

Investor Confidence

Jeff Jordan, managing partner at Andreessen Horowitz, commented that “A growing number of businesses are proactively reducing emissions to mitigate global warming. Patch simplifies the integration of carbon removal into core business processes, providing access to verified carbon removal solutions through a user-friendly API.”