In October, MBJ reported that Memphis-based venture capital (VC) firm Ridgeline had closed a $52 million fund.
Now, it’s invested a portion of it in a carbon removal technology startup.
Ridgeline co-led New Jersey-based Eion’s series A funding round, which recently closed, and was valued at over $12 million. The round’s other leader was the foodtech and agtech VC firm AgFunder, and additional investors included Carbon Removal Partners, Mercator Partners, Orion, and Trailhead Capital.
The funding is expected to help Eion build out distribution partnerships, and expand the availability of its product CarbonLock — a nature-based soil amendment that can permanently remove atmospheric carbon dioxide, through enhanced rock weathering on agricultural soils.
"Public corporations and governments will increasingly seek permanent, scalable carbon removal to meet their ESG goals and mandates," said Brandon Harris, a principal at Ridgeline, in a press release. "Eion's rare combination of strong agricultural co-benefits for farmers and high capacity for verifiable carbon removal positions the company to be a leader in carbon markets going forward."
The move is a fitting one for Ridgeline, which looks to invest in early-stage tech companies that can potentially help reshape the economy, and transform large enterprises through innovations in both software and hardware.
It also has FedEx, AutoZone, and Dollar General as strategic corporate limited partners (LPs), which have invested in its fund, and are looking for better ways to access new technology.
“With very mature companies like they are, it’s not as easy to reach back to two folks founding a company, as you would think,” Ridgeline partner Ryan Clinton told MBJ in October. “So, what we help them do is access that nascent early-stage technology market that’s out there. And we’re looking over the horizon at technologies they maybe wouldn’t otherwise consider.”
Eion’s offering does seem like a technology that FedEx, AutoZone, and Dollar General would be interested in. All three have set sustainability goals, and FedEx and AutoZone are looking to reach carbon neutrality by 2040 and 2050, respectively.
FedEx announced its plans to eventually become carbon neutral in March 2021, while AutoZone revealed theirs in late November 2022.
FedEx plans to invest $2 billion in its quest to become carbon neutral, with the funds divided among three areas: vehicle electrification, sustainable energy, and carbon sequestration. It includes a $100 million commitment to Yale University (company founder Fred Smith's alma mater), so the institution can establish the Yale Center for Natural Carbon Capture.
AutoZone wants to reach net zero emissions across its scope one and scope two emissions by 2050, or sooner. The company is setting its goals in collaboration with a global energy management firm, which is helping it assess its carbon footprint and climate risks; and it’s focused on having its greenhouse gas (GHG) reduction targets meet the needs of the Paris Agreement’s 1.5 degrees Celsius goal.
