Sustainability Software Startup Tanso Raises Funding; Engages Partners in Midsize Manufacturing Market

Tanso, a carbon accounting and sustainability software startup in Germany, has raised $12 million in Series A funding and is embracing channel partners to engage and support midsize manufacturing companies.

Venture capital firms henQ and Fortino Capital led the funding round, with participation from existing investors Capnamic and UVC Partners.

Tanso, founded in 2021, is based in Munich, Bavaria, Germany. The company's software "combines carbon accounting and ESG data management in a single, centralized solution," Tanso asserts. Key executives to know include three co-founders: CEO Till Wiechmann, CPO Gyri Reiersen and CTO Lorenz Hetzel (pictured below).

Tanso had 57 employees listed on LinkedIn as of August 2025. The company plans to use the new funding to "expand its team from the current 55 to over 100 employees, to expand into additional countries, and to develop further product modules for supply chain, compliance, and risk management," according to the funding announcement.

Tanso's partner program currently involves consultancies, auditors and associations. Key partnership experts to know include Michael Kalus, partnership lead at Tanso since April 2025, according to his LinkedIn profile.

We're checking to see if the software is multi-tenant for MSPs (managed IT service providers), and we're seeking to determine if Tanso offers recurring revenue opportunities to MSPs and ISVs.

Carbon Accounting Software Market Opportunities and Challenges

The Series A funding, which surfaced on August 5, 2025, arrived at a key time.

On the upside, the market appears to be growing. Indeed, overall carbon accounting software market is expected to reach $100.84 billion by 2032, up from $15.32 billion in 2023, according to Fortune Business Insights. That's a 23.6% compound annual growth rate (CAGR), the researcher said.

On the downside, competition from startups and entrenched IT giants is intense. Indeed, major cloud and IT technology providers -- including Microsoft, Oracle, SAP and IBM, to name a few -- offer various sustainability software platforms.

Moreover, dozens of startups are struggling to find new funding and new customers amid recent geopolitical headwinds, Sustainable Tech Partner believes. Among the challenges to note: The U.S. federal government has rolled back and/or abandoned various climate initiatives since President Donald Trump's second term began in January 2025. Further complicating matters, the European Union is rethinking various sustainability and ESG regulations and associated deadlines.

Some companies are describing ESG software market headwinds in their quarterly earnings report. For instance, Workiva Carbon experienced strong demand in late 2024, but the company saw "softer demand" in certain sustainability segments in Q2 of 2025, according to Workiva's earnings call on July 31, 2025.

Amid those market variables, many venture capitalists (VCs), private equity firms and angel investors have hesitated to fund existing or new climate tech startups.

M&A Activity: Carbon Accounting Software Platform Acquisitions

The geopolitical headwinds could force some climate tech businesses to shutter and/or sell their intellectual property at steeply discounted valuations, Sustainable Tech Partner believes.

So far, M&A activity involving carbon accounting software startups has been steady -- though in most cases we don't know if the deal valuations were strong.

Example business combinations include:

• July 2025: Green Project Technologies, part of ACT Group, acquired Emitwise. 
• May 2025: Asuene acquired NZero, a software company that allows organizations to "operationalize and optimize energy use, cost, and emissions," the buyer said.
• February 2025: Ecologi acquired Net Zero Now, a carbon accounting software platform provider. Financial terms of the deal were not disclosed.
• September 2024: Gevo acquired CultivateAI to further focus on carbon accounting software and data in the agriculture market. Gevo paid $6 million in cash, with additional earn-out payments potentially possible, the buyer said.
• August 2024: Asuene acquired CoRocket and launched an associated business called Asuene Veritas. Financial terms of the deal were not disclosed.
• June 2024: Workiva acquired Sustain.Life for $100 million.

Also of note: Private equity firm Thoma Bravo may be seeking to sell ESG software provider Cority for roughly $2 billion, Reuters reported in mid-2024. No buyer for Cority has emerged as of August 2025.

As for Tanso, we'll be seeking partner program updates from the company. Stay tuned.