Atlanta startup Cloverly has raised $19 million to continue building out its carbon offset platform.
Cloverly allows companies to buy credits to fund projects that reduce carbon dioxide emissions, such as planting trees. The goal of the purchase is to compensate for the amount of carbon dioxide companies’ release in their operations, such as from shipping.
Inside the deal: Grotech Ventures, a firm that invests in high-growth technology companies, led the round. Other new investors include Aquiline Technology Growth, Impact Engine, Mission One Capital, New Climate Ventures and CreativeCo Capital. Existing investors, many of which are based in Atlanta, also participated. Those include Tech Square Ventures, SoftBank Opportunity Fund, Circadian Ventures, Knoll Ventures, Saas Ventures and Panoramic Ventures.
Why it matters: Cloverly’s sustainability services cater to businesses incorporating more sustainability initiatives into their operations, a growing trend as consumers prioritize companies that align with their social and environmental views. The carbon offset market is expected to grow from $2 billion in 2020 to $250 billion in 2050, according to Morgan Stanley.
About the company: Cloverly was incubated in Southern Co., where founder Anthony Oni previously worked as a vice president of corporate communications. Oni officially launched the startup on Earth Day in 2019. The company has more than 200 enterprise customers. This funding round brings its investments to at least $21.1 million, according to previous reporting. Cloverly is now led by CEO Jason Rubottom. Oni is now a board member of the company and managing partner at Energy Impact Partners, according to LinkedIn.
What’s next: Cloverly plans to use the funding to triple its 34-person staff, launch a second headquarters in London and add a new platform geared toward suppliers.
