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According to a statement issued on Tuesday, a project funded by Adam Neumann, the co-founder and former Wework leader, collected $70 million from key investors. Neumann is a divisive character because of his participation in the company in 2019, when it was discovered the company was losing money. Wework filed an S-1 registration for an initial public offering (IPO) stock launch in September 2019, and Neumann resigned as CEO. Neumann co-founded Flowcarbon with his wife Rebekah, Dana Gibber, Ilan Stern, and Carolina Klatt.
Flowcarbon is a "pioneering climate technology business working to establish market infrastructure in the voluntary carbon market (VCM)" that aims to solve the global climate crisis. The startup raised $70 million in venture money and from the private sale of its carbon-backed cryptocurrency to tokenize the carbon credit sector. Flowcarbon's funding was sponsored by Andreessen Horowitz's crypto business A16z, according to the company release.
Invesco Private Capital, General Catalyst, Samsung Next, Sam and Ashley Levinson, RSE Ventures, Kevin Turen, and Allegory Labs also participated in the funding round. Box Group, Celo Foundation, and Fifth Wall were among the investors in the token sale. The firm integrates carbon credits into the Celo blockchain and converts them into goddess nature tokens (GNT). According to the website's overview, the goal is to make the carbon credit voluntary while also making it "more clear, liquid, and accessible."
According to Flowcarbon's release on Tuesday:
"By establishing the first open system for tokenizing real, certified carbon credits from projects all around the world, Flowcarbon's objective is to push billions of dollars directly to projects that decrease or remove carbon from the atmosphere."
Flowcarbon, according to A16z General Partner, is "a New Economic Flywheel for Sustainability."
Dana Gibber, the CEO of Flowcarbon, noted that "strong economic incentives exist around the world to destroy and damage vital natural areas." According to Gibber, a VCM like Flowcarbon's could counterbalance those incentives. In addition to Flowcarbon's funding announcement, Arianna Simpson of Andreessen Horowitz (A16z) wrote a blog post on A16z's investment in the company. The Flowcarbon project, according to Simpson, "unlocks a new economic flywheel for sustainability." Andreessen Horowitz's general partner, who invests in cryptocurrency, added:
"Buyers can buy ERC20 tokens backed by a bundle of certified carbon credits from initiatives that protect and restore nature that were issued in the last five years."
The $32 million investment round for Flowcarbon was led by A16z and a small group of additional investors. The remaining $70 million came from the sale of goddess nature tokens (GNT). GNT is 1:1 backed, according to Flowcarbon's website, since "each GNT token is backed by 1 carbon credit from a carbon removal or reduction initiative." Every carbon credit has "real-world value" and is "accredited by the main carbon credit issuers," according to the firm.
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