Nature-based carbon project development and financing startup Earthshot Labs announced today that it has raised $5.5 million in a Series A funding round, aimed at supporting the expansion of its platform.

Launched in 2020, Earthshot Labs provides a platform for developing and financing nature restoration and conservation projects using carbon as the primary financing mechanism, streamlining compliance and derisking project finance with automated feasibility and underwriting tools. The platform helps restoration and conservation project developers to get verified carbon credits and receive financing, and provides a due diligence process supporting investors accessing a pipeline of projects.

To date, the company has helped develop more than 60 reforestation, conservation, agroforestry, and improved forest management projects, and directed over $55 million in financing. According to Earthshot Labs, its current projects cover over a million hectares and will sequester over 30 million tonnes of CO2.

The financing round was led by California-based early stage investor Acorn Pacific Ventures, and included participation by investors including Earth Foundry, Future Ventures, Resilient Earth Capital, One Small Planet, Parameter Ventures, Sand Hill Angels, and Orca Capital.

Derek Chau, Partner at Acorn Pacific, said:

“Earthshot has one of the most experienced and scientifically credentialled teams in the industry, and has a proven track record with many of the largest companies in the world. We analyzed over 200 climate tech companies before making this investment.”