Flowcarbon, a start-up specializing in blockchain technology, has just raised $70 million. The fundraiser was led by a16z crypto, a venture capital firm specializing in digital currencies. Renowned tech investors answered the call. This is particularly the case of Samsung Next, a branch of the South Korean group dedicated to investment.
To raise funds, the start-up also issued its own token, the Goddess Nature Token (GNT). The Flowcarbon token has been deployed on the Celo blockchain. Thanks to the issuance of cryptocurrency, the American firm managed to raise 38 million dollars. The remaining $32 million was provided by investors.
Revolutionizing the carbon credit market
In a press release, Flowcarbon pledges to use the millions of dollars raised to develop a carbon credit trading platform which is based on the blockchain. Thanks to the strengths of this technology, on which most cryptocurrencies on the market are based, the start-up hopes to “ drive billions of dollars directly to projects that reduce or eliminate their carbon emissions.”
To achieve this, Flowcarbon will tokenize the “ certified carbon credits » of the whole world. Concretely, the start-up proposes to digitize carbon credits and register them on the blockchain network. This approach should prevent fraud by taking advantage of the resilience of the blockchain.
The start-up specifies that each GNT token is backed by a carbon credit, similar to how a stablecoin like USDT relies on a reserve of US dollars. On the platform designed by Flowcarbon, project leaders will be able to directly exchange carbon credits with buyers. The start-up ensures that the carbon credits behind the GNT are handpicked: “GNT is backed by a pool of certified credits issued over the past five years from nature-based projects.”
The return of the Neumann couple
Behind this start-up using blockchain technology, we find in particular Adam Neumann. The Israeli-American entrepreneur is best known for co-founding WeWork. Specialized in coworking spaces, the startup valued at $ 47 billion came close to bankruptcye. Back to the wall, WeWork was forced to lay off some of its employees.
Adam Neumann and his wife Rebekah Neumann are considered to be the main culprits behind the sinking of WeWork. In an attempt to reinvent themselves, the couple invested in the development of Flowcarbon. The Neumanns apparently participated in the creation of the blockchain start-upalthough the management of the company is left to Dana Gibber, another co-founder of the project.
Interviewed by the Financial Times, Adam Neumann explains that he recruited the other co-founders with the help of his wife. The couple also had the idea of using the English word “Flow” (which means “state of flux” in French) in the name of the company.
“When we think of the environment, we think of ourselves, we think of harmony between ourselves and others, we want to let ourselves sink. And I think something that we all learned during corona is that we all want to be in that state of flux”, explains Adam Neumann. After wanting to reinvent the collective workspace, will he succeed in revolutionizing the carbon credit sector?