Image credits: Stenver Jerkku
Solid World DAO, an Estonian startup that utilises blockchain technology to tokenize carbon credit pre-purchase agreements, announced last week that it has secured $2.5M (approximately €2.3M) in a funding round. The reportedly oversubscribed round was led by Yolo, Greycroft, Awesome People Ventures, Allegory, Possible Ventures, Draft VC, and Basecamp Fund.
Solid World says it plans to use the funds to build liquidity pools by pre-purchasing carbon credits, and a team/community rewards programme.
Has the Dutch workforce mastered all digital skills? Find out
Stenver Jerkku, founder and chairman of Solid World DAO, says, “The carbon markets are untransparent and predatory towards new players right now. Our mission in Solid World DAO is to fix that. Using Blockchain and web3, we can realign the economic incentives for all the players in the space, bring capital efficiency to the institutions and make sure there is a liquid forward market for carbon credits.”
What does Solid World DAO solve?
Climate change is one of the most important challenges that humans currently face, and people around the world are working to develop innovative ways to save the planet. However, there is not enough funding to simply start a new carbon project.
Solid World says that many institutions want to fund carbon projects through forwarding purchases, but there are major non-delivery risks and the forward credits are illiquid assets. And this is the problem that the Tartu-based company hopes to solve through blockchain-based tokenized infrastructure.
Solid World DAO: What you need to know
Founded by Stenver Jerkku, Solid World DAO is a community-held protocol that helps stop climate change by providing fair financing to future projects.
Powered by web3 technologies and blockchain, the company de-risks projects and makes forward markets liquid and collateralisable.
The company’s proposed solution enables high-quality carbon projects to access financing before certification by pre-selling a portion of their carbon credits.
Investors
Based out of New York, Greycroft is a venture capital firm that focuses on technology startups and investments in the Internet and mobile markets.
The VC manages over $1B and has made over 200 investments since its inception in leading companies, including Acorns, App Annie, Bird, and more.
“We see a very strong value alignment between Greycroft and Solid World. Our firm invests in founders of all backgrounds who lead companies at any stage,” says Will Szczerbiak, Greycroft partner.
“Solid World has a similar mindset when it comes to leveraging blockchain technology to support climate innovators around the planet who are developing promising decarbonisation projects.”
Catch our interview with Paul Down, Head of Sales at Intigriti.
