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VCs Fund Sustainability Software Startups, Carbon Accounting SaaS Platforms for CSRD Compliance

April 17, 2024 by Joe Panettieri

Multiple startups, backed by angel investors and venture capitalists, continue to build and launch SaaS-based software platforms to address carbon accounting, regulations such as CSRD (Corporate Sustainability Reporting Directive), and key vertical market opportunities.

The latest business moves involve such startups as BeCause, Coolset, Cozero, and Sumday. Here's a sampling of their strategies, and early clues about their partner strategies:

1. BeCause - Hospitality Focus: The software company, founded in 2018, is based in Copenhagen, Denmark. BeCause is preparing to launch a digital tool that "helps global hotel chains meet their reporting and compliance obligations" under the European Union's CSRD mandate, the company said. BeCause Partner Program: The company highlights these partners and frameworks.

Coolset Logo

2. Coolset - Software Platform Launch: The software company, founded in 2022, is based in Amsterdam, the Netherlands. Coolset has launched a sustainability compliance management solution for mid-market companies that need to address CSRD. The company, formerly known as Greencast.io, raised €1.5 million in seed funding in early 2024. Global Cleantech Capital led that funding round, joined by such firms as Shamrock Ventures, Horizon, The Sharing Group and various angels. Coolset Partner Program: Coolset's website doesn't appear to have a partner program area -- but the company appears to be building a marketplace that allows customers to discover vetted carbon neutral vendors.

3. Cozero - New Funding: The software company, founded in 2020, is based in Berlin, Germany. Cozero has raised €6.5 million in Series A funding, led by Kvanted and ENV. Moreover, NewAlpha Asset Management and several business angels participated in the round. Cozero develops Climate ERP software. Early adopters include Maersk, Nippon Express Europe (NX Group), and DMG MORI. The software allows customers to report and reduce corporate carbon emissions, Cozero asserts. Cozero Partner Program: We don't see a partner program mentioned on their website, but Cozero does offer an API -- which could set the stage for software partner engagements.


4. Sumday - New Funding: The software company, founded in 2023, is based in Burnie, Tasmania. Sumday develops carbon accounting software for businesses. Sumday has has raised $5.3 million in seed funding. Planeteer Capital led the round, with participation from BlackbirdWedgetail, Cameron Adams and Possible Ventures. Roughly 50 accounting firms have embraced Sumday's software for greenhouse gas emissions (GHG) accounting. Sumday Partner Program: Initial details are here.

Sustainability and Carbon Accounting Software: Growing Market, Fierce Competition

Demand for carbon accounting software is expected to skyrocket over the next decade. Indeed, the global market for carbon accounting software will reach $64.39 billion by 2030, up from $15.31 billion in 2023, according to Fortune Business Insights. That's a 22.8% compound annual growth rate (CAGR), the market researcher said.

M&A Activity: Dozens of software startups, venture capitalists, angel investors and established technology companies are moving into the market. Among the moves to note:

Venture Capital: Funding in the ESG software market has also generated some activity. Example deals include:

AWS, Microsoft Azure: Technology giants also are moving into the market. For instance:

What's Next - Potential Answers at Xerocon 2024

Meanwhile, more SMB carbon accounting news may surface at Xerocon 2024 -- an accounting software and small business platform conference scheduled for August in Nashville, Tennessee. Ahead of the event, Xero and Sumday partnered in February 2024 to "help accountants and bookkeepers globally to manage their own and their clients’ carbon accounting." We'll be watching for updates at the conference.

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