Australian agrifood tech venture capital firm, Tenacious Ventures has co-invested as part of a US$4 million (A$5.6m) round in carbon marketplace startup, Nori.
The round was led by US VC firm Placeholder along with North Island Ventures.
Nori, based in Seattle, USA, has developed a marketplace for carbon removal using blockchain technology.
Nori’s first supported method of carbon removal is soil carbon sequestration on croplands, which can be achieved through practices such as planting cover crops and reducing tillage.
Tenacious Ventures co-founder Matthew Pryor said there’s a growing global awareness of the importance of agricultural activity in carbon bio sequestration.
“But because it’s early days, the options available for farmers to participate in markets are still quite limited. As we see the increasing digitisation of markets of every kind, more carbon market options will become available,” he said.
“There are key elements about Nori’s approach that will provide both choice and flexibility, and contribute strongly to the growing need for climate solutions.”
This is the second investment by Tenacious Ventures, which is backed by the Clean Energy Finance Corporation and Grok Ventures, the family office of Mike and Annie Cannon-Brookes.
Matthew Pryor said his fund sees agrifood innovation as a global opportunity.
“And while we largely focus on Australia as the source of innovation, there are also times when there are innovations outside of the country that will have significant application to Australia, and that’s certainly true of Nori and it’s potential to enable grower participation in carbon marketplaces,” he said.
Nori CEO Paul Gambill said the new funds will go towards expanding the team, involving more farmers as carbon removal suppliers, and launching their industrial-grade carbon marketplace.