Climatiq uses AI to automate carbon emission data. See the pitch deck it used to raise $11.6 million.

Climatiq, an innovative startup based in Berlin, has successfully raised $11.6 million in Series A funding, primarily led by Alstin Capital. This funding will support their development of an AI-driven platform designed to help businesses automate the collection of carbon emission data. The company’s technology offers a unique analysis of various data points, including supply chain information and purchase orders, to effectively calculate scope 3 emissions—an essential measure of indirect carbon output. Hessam Lavi, the cofounder and CEO of Climatiq, explained in a recent interview that while many software solutions have existing APIs, none are specifically tailored for carbon emissions, prompting Climatiq to create a comprehensive infrastructure for carbon measurement tools. Scope 3 emissions often represent a staggering 90% of a company's total carbon footprint, making accurate measurement challenging due to the fragmented nature of the data involved. Climatiq’s AI platform streamlines the process by gathering data from a plethora of sources, including non-governmental organizations, the Intergovernmental Panel on Climate Change, and academic institutions. This information can then be seamlessly integrated into corporate emissions reports. Lavi emphasized the importance of having a reliable source for carbon data, highlighting the potential lack of confidence in methodologies used by various companies when reporting their emissions. As businesses in the US and Europe increasingly face requirements to monitor their emissions for compliance with ESG regulations, Climatiq provides a vital service. The company charges clients—ranging from Celonis to Siemens—based on their usage of the platform, illustrating its value in real-world applications, such as processing transport records from freight companies to deliver accurate carbon estimates. However, the fundraising landscape for climate tech has become increasingly difficult in recent quarters, with a reported 50% decline in venture capital funding year-on-year, according to PitchBook. Even established climate startups like Climeworks have faced challenges, including layoffs. Reflecting on the fundraising journey for this latest round, Lavi noted the heightened difficulties compared to their previous $5.8 million seed funding in 2022, stating that they engaged with approximately 70 venture capitalists to secure the latest investment. The Series A funding, led by Munich's Alstin Capital and supported by Singular and Cherry Ventures, will enable Climatiq to expand its engineering team and enhance its AI capabilities. The startup also shared insights from the 11-slide pitch deck that facilitated this significant financial boost.