Mombak, a Brazilian reforestation startup, raised $30 million led by USV to expand operations in carbon removal. The company restores degraded land to rainforest, selling carbon credits. This funding reflects increasing investor interest in Brazil’s carbon sector, with Mombak aiming to plant 8 million trees by June. Major firms have engaged in purchasing carbon credits from Brazilian projects, highlighting the sector’s momentum.
Mombak, a prominent Brazilian reforestation startup, has successfully raised $30 million in a funding round led by the venture capital firm Union Square Ventures (USV). This investment marks a significant milestone in the rising trend of investor interest within Brazil’s carbon removal sector. The announcement was made on Tuesday, underscoring the increasing demand for climate action initiatives.
The company, which focuses on restoring degraded agricultural land and pastures to their original Amazon rainforest state, utilizes native species. Additionally, Mombak generates carbon credits from their restoration efforts, which companies purchase as a way to voluntarily offset their greenhouse gas emissions. This dual mission of reforestation and emissions reduction is key to their business model.
In this Series A funding, Mombak not only gained support from USV, but also from existing investors including Kaszek, Bain Capital, and AXA’s AXA IM Alts. New investors like Lowercarbon Capital and Copa Investimentos also joined in. The funds raised will predominantly be allocated towards scaling operational capabilities for the expanding venture.
Mombak has demonstrated significant progress since its establishment, having planted approximately 5 million native trees across 45,000 acres, an area roughly three times larger than Manhattan. Looking ahead, the company has set an ambitious target of planting 8 million trees by June. As Mombak co-founder Gabriel Silva noted, “We are moving from startup to scale-up,” emphasizing the strategic decision to pursue further investment to enhance operations.
This fundraising effort highlights the burgeoning activity in Brazil’s carbon removal industry. Noteworthy startups such as Biomas and re.green, backed by billionaire Joao Moreira Salles, have also announced significant initiatives in recent weeks, reinforcing the momentum in this sector.
Major global firms including Google, Microsoft, Meta (the parent company of Facebook), and McLaren Racing have recognized the value of carbon credits from Brazilian projects. Mombak has already secured $150 million in carbon removal offtake contracts, with expectations to quadruple that volume in the upcoming year. Since its inception in 2021, the startup has attracted approximately $200 million in total investments.
Andy Weissman, managing partner at USV, expressed confidence in the future of carbon removal, stating, “We believe that carbon removal will be one of the defining industries of the 21st century.” He expressed pride in supporting Mombak’s vision to transform the Amazon into a cornerstone of global climate restoration efforts.
In summary, Mombak has successfully secured a significant $30 million in funding led by Union Square Ventures. This investment will assist the startup in scaling its reforestation operations while responding to the increasing market for carbon credits. The broader trend in Brazil’s carbon removal sector seems to be gaining rapid momentum, attracting attention from key investors and major corporations alike. The ambitions of Mombak, alongside other industry players, reflect a crucial commitment toward combating climate change and promoting sustainability in the Amazon.
Original Source: www.marketscreener.com
