NatCap Raises $10 Million in Series A Funding to Help Businesses Understand Sustainability Risks
NatCap, a UK startup focused on helping businesses understand their sustainability risks, has recently secured $10 million in Series A funding. The company, founded in 2018 as an academic venture spun out of Oxford University, offers a tech platform that enables businesses to assess their risks and opportunities related to natural issues such as water risk and biodiversity.
One of the key features of NatCap’s platform is its ability to aggregate data from various sources including governments, NGOs, and private companies to provide metrics aligned with climate frameworks. This allows businesses to better report around regulations and recommendations such as the EU’s Corporate Sustainability Reporting Directive and Sustainable Finance Disclosure Regulation, as well as those voluntarily reporting under the Taskforce on Nature-related Financial Disclosures.
Among NatCap’s notable clients are UK supermarket chain Tesco and Norwegian energy firm Equinor. CEO Sebastian Leape highlighted the increasing importance of sustainability issues for businesses, noting that there has been a “culture change” in recent years with a heightened focus on nature-related challenges in addition to climate issues.
The funding round was led by investors including André Hoffmann, Norinchukin Capital, Yeo Ventures, and Pelican Ag. Former Refinitiv CEO David Craig also participated in the round, along with follow-on investment from Oxford Science Enterprises. When asked about the utilization of the funds, Leape mentioned plans to enhance their risk quantification technology and expand their science and engineering team, as well as their presence in Europe and Japan.
The investment in NatCap comes at a time when VC interest in nature tech is on the rise, with an 18% increase in funding to $1.85 billion in 2023 compared to the previous year. This trend reflects a growing focus on biodiversity startups and the importance of addressing nature-related challenges in the business world.
Overall, NatCap’s successful funding round underscores the increasing recognition of sustainability risks among businesses and the importance of leveraging technology to address these challenges effectively.