NetaCarbon
Workflow solution for bespoke high-quality carbon projects investments.
Location:
United States, Mexico
Founded:
2023
Team Size:
2
Industry:
Climate, Sustainability, SaaS (Software as a Service), Environmental
Founders:
Maria del Mar Velasco, Co-founder,
Grace Lam, Co-founder,
About:
Our mission is to mobilize investments into projects that protect and preserve the planet. The voluntary carbon market's projected growth from $2 billion to $50 billion by 2030 presents a significant opportunity. To unlock this growth, sustainability officers need the power, budget, and best tools to take actionable steps towards reaching their goals. Additionally, corporate buyers need alternatives to mitigate reputational risks when purchasing off-the-shelf carbon credits. On the other hand, project developers lack financing to get their projects off the ground. Limited funding and intermediaries present significant hurdles to launching carbon projects.
NetaCarbon’s solution rebuilds trust in the carbon market by enabling corporate buyers to be the creators and financiers of high-quality carbon projects. Pre-financing not only serves as an effective climate finance solution and enables carbon projects to get off the ground, but it also strengthens brand narratives and can drive top line growth.
Our initial users are sustainability officers of mid-sized corporate companies with climate goals. Depending on organization structure, commercial or finance teams could be our users as well. We expect our users to be based in the US and carbon project developers to be mainly in LatAm (also where we have the deepest relationships in our networks and makes more sense for our customers due to the proximity in their value chains). However, we anticipate expanding globally as sustainability initiatives gain momentum worldwide.
Describe your startup. What is your startup's mission, and what problem are you solving and who are your customers?
Our mission is to mobilize investments into projects that protect and preserve the planet. The voluntary carbon market's projected growth from $2 billion to $50 billion by 2030 presents a significant opportunity. To unlock this growth, sustainability officers need the power, budget, and best tools to take actionable steps towards reaching their goals. Additionally, corporate buyers need alternatives to mitigate reputational risks when purchasing off-the-shelf carbon credits. On the other hand, project developers lack financing to get their projects off the ground. Limited funding and intermediaries present significant hurdles to launching carbon projects.
NetaCarbon’s solution rebuilds trust in the carbon market by enabling corporate buyers to be the creators and financiers of high-quality carbon projects. Pre-financing not only serves as an effective climate finance solution and enables carbon projects to get off the ground, but it also strengthens brand narratives and can drive top line growth.
Our initial users are sustainability officers of mid-sized corporate companies with climate goals. Depending on organization structure, commercial or finance teams could be our users as well. We expect our users to be based in the US and carbon project developers to be mainly in LatAm (also where we have the deepest relationships in our networks and makes more sense for our customers due to the proximity in their value chains). However, we anticipate expanding globally as sustainability initiatives gain momentum worldwide.
Who are the founders, and what sparked the idea for this venture?
Mar Velasco is from Mexico, previously ran IR at Grupo Bimbo, and graduated with an MBA from MIT Sloan with certificates in sustainability and entrepreneurship. Grace Lam is from Hong Kong, previously a McKinsey manager, and graduated from Harvard Business School and Harvard Kennedy School. They met in Kenya while they were developing and investing in carbon projects at a forestry startup and at a climate VC respectively. They decided to build NetaCarbon after experiencing firsthand the inefficiencies and pain points faced by all stakeholders in the entire carbon project development cycle. What sets them apart is their technical expertise in selecting and vetting carbon projects, which requires more than just a good business idea or a couple lines of codes – they have been deep in the carbon industry for several years now and understand completely how it works. If you are interested in learning more about our story, check out our blog post: https://www.netacarbon.com/insights/meet-our-founders.
What makes your product or service unique in the market?
What sets NetaCarbon apart in the crowded carbon market is our innovative approach, which bridges the gap between climate action and brand storytelling. We unlock more capital by approaching investments in carbon projects not only from a climate standpoint but with a branding and very human/social approach, achieved through sourcing bespoke carbon projects tailored to each company's specific needs and geographical footprints. This unlocks additional value, leveraging those investments to boost brand equity, control the narrative the company wants to share with its stakeholders, invest in communities, and ultimately reach their climate goals. Our AI-enabled project monitoring platform mitigates project risks by providing transparency and traceability of their carbon investments and empowers CSOs to achieve higher ROI of their climate budget.
What milestones have you achieved so far if any, and where do you see your startup in the next 2-5 years?
NetaCarbon has achieved significant milestones, including a proprietary database of 150+ vetted project developers, customer discovery with 100+ corporations, and securing pilots with a US PE-backed beauty brand and US e-commerce organic food company. We've launched a carbon project in Pakistan and received revenues, with 5 more in the pipeline, and established partnerships with TaroWorks, a company that recollects data offline and in conversations with Rating Agencies. Additionally, our low-code platform, hosted on WeWeb, facilitates sales demos and customer onboarding.
By 2028, we expect to reach around $20M ARR, having supported over 100 carbon projects that collectively reduce over 5 million tons of carbon emissions annually. As an established player in the carbon industry, NetaCarbon will pursue an active ecosystem strategy, extending our partnerships with governments and other important players to drive systems change in the carbon industry. Our work in the next few years will significantly advance our mission to mobilize capital into projects globally that protect and preserve our planet.
Furthermore, NetaCarbon has obtained $60,000 in non-dilutive grant funding and received recognition for our accomplishments, which include: Being selected for the Blue Carbon Innovation Studio 2024 Cohort in Singapore and the Dream Climate Tech Launchpad 2024 Cohort, culminating in a final pitch at Pittsburgh. Reaching finalist status in prestigious competitions: Savia Ventures Award (August 2024), IRENA NewGen Renewable Energy Accelerator (presented at COP 28 in Dubai), APEC GIST Catalyst Pitch Competition 2023 (presented at NCAPEC Sustainable Future Forum in San Francisco), and MBA Fund Pitch Competition (April 2023 and March 2024). Semi-finalist placements in renowned competitions: MIT 100K Competition (May 2023) and HBS New Ventures Competition (Social Enterprise Track, February 2023). Receiving the ClimateCAP Fellowship award in January 2023. Additionally, we were interviewed by Y Combinator (YC) in Spring 2024, further validating our innovative approach.
What defines your company culture, and what type of talent are you looking for?
At NetaCarbon, we truly embrace horizontal collaboration, open communication, problem-solving, proactivity, and a purpose-driven culture. We value every voice regardless of position or experience, and encourage knowledge sharing, independent thinking, constructive feedback, and transparency. We encourage the team to challenge the status quo and explore new ideas. To achieve our mission of mobilizing investments for a sustainable future, transparency, accountability, and integrity remain core to our decision-making and actions.
Are you currently open to investments or partnerships?
Definitely. We are actively looking to partner with corporations to increase our sales pipeline. We also want to connect with investors that could be a good fit for us, aligned with our mission and values. We are mainly looking to connect with family offices, angel investors, climate funds and corporate ventures.
How can interested investors, partners, or potential employees get involved or learn more?
Interested investors, partners, or potential employees can get involved or learn more about NetaCarbon through the following channels:
Direct contact: Reach out to our team at hello@netacarbon.com.
Stay updated through our newsletter: Subscribe at https://www.netacarbon.com/subscribe to receive exclusive updates on our progress.
Knowledge sharing: Visit our blog at https://www.netacarbon.com/insights to access our latest publications and insights on the industry.
Social media: Follow our LinkedIn page https://www.linkedin.com/company/netacarbon/ to stay informed about company news, achievements, and industry developments.
What were the best and worst pieces of advice you received as a founder?
Best: stay grounded. The startup journey is incredibly volatile, with extreme highs and lows. This mindset helps me maintain perspective – when we're struggling, I remind myself I'm not as incompetent as I feel, and when we're soaring, I recognize I'm not as brilliant as I think. This grounding keeps me focused on the long-term vision and resilient in the face of challenges.
Worst: Casting the net too wide for investors and not being thoughtful about our fundraising strategy. At Harvard/MIT, we are over-exposed to venture funding given their presence on campus, and did not give much thought to other sources of financing. However, talking to advisors helps us critically evaluate the tradeoffs between various types of investors and the importance of finding ones that align with our mission and vision for NetaCarbon. Fortunately, we secured non-dilutive funds from awards and fellowships that allow us to bootstrap until now and have the runway to select the investors we want to partner with on this journey. We are now expanding our network of strategic investors and prioritizing conversations with those who align with us on our vision for the carbon market!