CNaught, a pioneering force in the realm of climate action, has announced a groundbreaking achievement: the successful closure of a $2.25 million pre-seed investment round led by Greycroft. Additional contributions came from esteemed investors including Carthona Capital, Long Run Capital, and several angel investors.
The carbon credit market has witnessed a surge in activity, with businesses and individuals worldwide purchasing over 3.3 billion tonnes of carbon credits since 2004, amounting to an estimated $2 billion in 2021 alone. Presently, a significant portion of Forbes Global 2000 Companies publicly declare their net-zero goals, with 97% of them relying on carbon credits to achieve these objectives. Predictions indicate that the voluntary carbon credit market is set to reach an astounding $50 billion by 2030.
However, despite the market’s growth, it remains shrouded in opacity, confusion, and inconsistency. Buyers are often hesitant, fearing the acquisition of underperforming credits that could expose them to legal ramifications and public criticism—risks deemed unacceptable for businesses striving to meet publicly-reported sustainability targets. This is where CNaught steps in, offering a revolutionary solution. CNaught stands out as the first science-based and trust-centered seller of carbon credits, providing companies with a streamlined way to purchase a diversified, science-backed portfolio of carbon credits with transparent, flat, usage-based pricing.
Mark Chen, co-founder, and CEO of CNaught, explained the company’s mission, stating, “CNaught was founded to get more companies off the sidelines by making the process of taking climate action as simple as possible. We provide an ‘easy button’ for carbon credits that allows customers to purchase a diversified, science-backed portfolio of carbon credits in minutes. CNaught gives them confidence that they are taking real climate action.”
Since its soft launch in April 2023, CNaught has made significant strides, retiring over 10,000 tonnes of carbon credits on behalf of numerous customers. Notable clients include Pure Insurance, DuckDuckGo, Homebound, Thrive Home Builders, Canopy, Hitch, and Zeelo.
Will Szczerbiak, Partner at Greycroft, expressed his enthusiasm for CNaught’s innovative approach, highlighting the company’s real-time impact. “So many climate tech startups are purely vision-based, offering solutions that are years away from reality. CNaught offers impact now,” he said. “They demonstrated product market fit early on, achieving impressive customer traction and revenue growth. The team has decades of experience simplifying complex supplier marketplaces, and it shows.”
Looking ahead, CNaught plans to expand its global sales outreach to enterprises of all sizes and strengthen its partnerships with organizations keen on offering carbon offsetting solutions to their end users. With this significant investment, CNaught is poised to revolutionize the landscape of carbon credit purchases, providing a transparent, reliable, and efficient pathway for companies and consumers alike to contribute meaningfully to the fight against climate change.