Carbon offsets are used by corporations to decrease their environmental impact by purchasing “carbon credits” or investments in emission reduction projects that compensate for the emissions that the company creates elsewhere. This allows corporations to achieve their emissions and sustainability goals without disrupting their operations. However, finding suitable and reliable projects in the carbon offset market can be challenging as the claims of impact are not necessarily accurate, especially when self-reported. Sylvera is a provider of independent, up-to-date assessments of carbon projects. The platform uses machine learning coupled with proprietary data to provide actionable intelligence on the carbon market that corporations can use to evaluate their strategy and carbon offset investments. As the United Nations’ SDG has set defined metrics to hit by 2030 and 2050, corporations are increasingly interested in reducing their footprints and this market is expected to grow to $100B by 2030.
London TechWatch caught up with Sylvera CEO and Cofounder Dr. Allister Furey to learn more about the dynamics of the carbon offset market, the need for Sylvera’s offering, the company’s strategic plans, recent round of funding, which brings the total funding raised to $38.4M, and much, much more
Who were your investors and how much did you raise?
We completed a $32.6M Series A Fundraise, co-led by Index Ventures and Insight Partners, with participation from Salesforce Ventures, LocalGlobe, and angel investors.
Tell us about your product or service.
Sylvera helps you choose the best carbon credits. Our team of experts leverages proprietary data and machine learning technology to produce the most comprehensive and accessible insights on carbon projects. Independent, in-depth and up-to-date project reports and market intelligence are delivered through our online platform.
How is it different?
To create Sylvera carbon credit ratings, my cofounder Samuel Gill and I put together a team of industry leaders with diverse experience in carbon markets, climate policy, credit ratings, artificial intelligence, geospatial technology, and environmental sciences.
We’ve built a platform that rates voluntary carbon credits on a scale from AAA to D, using our proprietary data and machine learning technology, and make these project assessments available through our web application platform or API. We’ve designed Sylvera carbon credit ratings to be accessible while also providing comprehensive and in-depth information.
Our key points of differentiation:
- We don’t sell offsets; this helps us retain independence with no conflict of interest
- Our data and technology: We use the latest machine learning and earth observation to evaluate project performance and the quality of baselines. This is a particularly rigorous and non-trivial process for REDD+ projects.
- Our ratings team and methodology: We invest a lot of time and resource into every project analysis and subsequent rating. We have over 50 people working across our Geographic Information System (GIS), Ratings, Machine Learning, and Engineering teams, who are dedicated to capturing as many material issues as possible for individual projects. The Sylvera Carbon Rating is based on deep analysis of a project’s carbon performance, additionally, and permanence. It also takes into account co-benefits the project brings to local communities and the environment.
What market you are targeting and how big is it?
We target buyers who tend to be large institutions/corporations that have made net zero commitments, and who are the biggest buyers of carbon credits in the market. These companies typically are S&P 500.
What’s your business model?
SaaS model.
What are your post-COVID office plans??
We have a London HQ in Moorgate, but operate as a hybrid company. We are proud to have a diverse and distributed global team.
What factors about your business led your investors to write the check?
Voluntary carbon markets need reliable, independent data. Here are two quotes from the co-lead investors:
Carlos Gonzalez-Cadenas, partner at Index Ventures and Sylvera board member said, “We won’t stand a chance of reducing the world’s carbon emissions without a well-functioning carbon offset market. Billions are spent on carbon offsets every year, yet there is a lack of transparency and accountability and, therefore, a lack of trust. Trust is absolutely essential to reach the scale required to address the climate emergency. As an independent data provider, Sylvera has seen exponential growth in demand from some of the world’s largest companies, governments, and other entities. It highlights how critical their work is, and we’re excited to expand our partnership with Sylvera.”
“We’ve seen incredible growth in the carbon offset market, but until recently, it’s been difficult for the companies that buy these offsets to measure their impact,” said Deven Parekh, Managing Director at Insight Partners. “Sylvera’s advanced technology allows corporations to monitor the performance of nature-based offsets in real-time. Sylvera has quickly become a leader in the industry with a growing list of Fortune 500 clients. We’re excited to partner with Sylvera as they continue to scale up.”
What are the milestones you plan to achieve in the next six months?
Our goal is to have around 500 projects rated by the end of the year. We have now spent about 50 person-years on our rating production systems and frameworks. We care deeply about the quality of the rating data, and will not put out data we are not confident in.
What advice can you offer companies in London that do not have a fresh injection of capital in the bank?
We are growing our teams, particularly in the technology and commercial oranizationss. We plan to increase our platform coverage and capabilities.
