Thallo: Next Gen Carbon Credit Exchange Powered by Blockchain

Thallo Fast Facts

Headquarters

London, UK

Product

Thallo's Carbon-as-a-Service (CaaS) API allows businesses to easily offer carbon offsetting to their customers. They have created a technology called the Carbon Bridge that brings carbon credits onto the blockchain. Thallo has partnerships with 3 registries and plans to tokenize Gold Standard credits soon. Their API can be integrated into any digital interface, making it accessible to anyone in the market. Using CaaS not only saves money compared to other carbon purchases, but also helps businesses improve customer loyalty, stand out from competitors, meet reporting requirements, and create new revenue streams.

Funding

Thallo has raised $2.5M in a Seed round in 2022. Investors include:

• Enterprise blockchain and crypto company Ripple

• Lead investors Arcan LLC and Friendly Trading Group 2,

• Allegory, Cerulean Ventures and Flori Ventures

• Thallo received a grant from Layer 1 blockchain Celo, via the Climate Collective, and has a technical partnership with Ripple

Team

CEO & Co-founder: Ryan Gledhill

• Previously CTO at Ivno, which was acquired by enterprise blockchain giant R3

• Responsible for 70%+ of existing Real-World Assets on MakerDAO

• Led the ICO of FunFair in 2017

CTO & Co-founder: Adam Dry

• Led Ivno’s engineering team to build a tokenization engine for hundreds of banks and capital market blue-chips

• Architected a protocol responsible for > 20% of revenue on MakerDAO

• Veteran in creating multi-million pound projects from scratch

Chief Strategy Officer & Co-Founder: Joseph Hargreaves

• Former Senior Sustainability Consultant at Carbonbit

• 10+ years of sustainability and carbon markets experience

• Designed sustainability roadmaps for FTSE 500 firms

• Identified £50M+ of carbon reducing projects

Business Model

Thallo charges customers a monthly fee to use their API, along with an additional transaction fee on the carbon credits being transacted. However, the project developer determines the pricing for their credits. Thallo is post-revenue with $300K in ARR.

Market Opportunity

Experts predict that the voluntary carbon markets could be worth $150 billion by 2030, a significant increase from the current value of $2 billion. Compliance markets are also expected to grow to $2.7 trillion. The B2B2C market presents an opportunity of $85 billion. Thallo's ability to divide carbon credits into smaller units positions them well to take advantage of this opportunity. Unlike competitors, Thallo offers a streamlined and high-integrity product. Other carbon credit marketplaces offer limited volumes and projects, with significant mark-ups. Carbon credit exchanges cater to high volume customers but have strict purchase thresholds and low-quality credits. Software providers lack transparency and impose mark-ups. Thallo, on the other hand, uses blockchain for full auditability.

Traction

• Raised $2.5M in Seed funding

• Seeing uptake from various sectors: carbon accounting firms, e-commerce brands, and B2B firms

• 6 customers representing $300k in ARR

• Expecting to reach $2M in ARR this year

• Access to 50 million tonnes of carbon credits through partnerships with over 200 project developers

• Live integrations with 3 registries

• Recently added fintech veteran Ivar Wiersma to the team

Why Now?

Many large companies have set goals to reduce their carbon emissions, and most of them use carbon credits to offset the emissions they can't eliminate yet. Experts predict that the voluntary carbon markets could be worth $150 billion by 2030, compared to just $2 billion currently. Compliance markets are also expected to grow to $2.7 trillion. However, there are challenges in the market right now, such as a lack of transparency, standardization, and digitization. Thallo has a solution to address these challenges and aims to become a significant player in these markets, making every transaction a meaningful climate action.

Climate Impact

Thallo aims to embed carbon credits across verticals and throughout the global economy. This could not only catalyze millions in climate financing and directly avoiding or removing carbon emissions at the gigaton scale, but also directly benefit communities - often indigenous and often in the Global South - that steward these carbon projects on the ground.

Support Thallo

Customers: Thallo is looking for customers for their Carbon-as-a-Service offering. Ideal customers are B2B or B2C firms that have a digital interface where they serve their clients. Top industries include:

• E-commerce companies looking for a sustainability solution for their clients

• Carbon accounting or sustainability consulting firms

• Fintech companies with digital customer interfaces

• Commercial real estate developers aiming to meet sustainability guidelines

Investors: Thallo is looking for investors interested in joining their current interim round, seeking $500,000

Advisor: Thallo is looking for a Marketing Advisor

Climate Tech Funding

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The State of Climate Tech 2023

The State of Climate Tech 2023 Report is out now! Net Zero Insights’ yearly analysis on global funding and deal activity in the private market venture space. Quick takes:

• Steady Rise of Non-Dilutive Funding

• A big F-O-A-K ing Year

• Record Year for (Corporate) Acquisitions

Latest Climate Deals

• Atment, a Munich-based RegTech company raised €1.42M in Pre-Seed funding to enhance technological development and market penetration.
  Investors: Revent Ventures, UnternehmerTUM, Vireo Venture

• Delfos, a Barcelona, Spain-based provider of a virtual engineer software platform for renewable energy assets, raised €6.3M in Seed funding to expand in Europe.

  Investors: Contrarian Ventures, Headline, DOMO Invest, EDP Ventures

• Dyatani, a Jakarta-based Agritech startup, raised $2.3M in Seed funding to install over 100 IoT (Internet of Things) devices across Java within a year, creating a network of weather stations.
  Investors: KBI Investment, Ascent Ventures

• Hey Circle, a Munich-based reusable shipping startup, raised $1.64M in Seed funding to strengthen the sales and IT teams, expanding production capacities and extending the product portfolio.
  Investors: Gateway Ventures, CK Venture Capital, Super Angels, Baystartup, Brangs + Heinrich GmbH, Capacura, Katja Ruhnke, Conny Horl, Dr Andreas R Boue, Ingo Dahm, Markus Kainz

• Jampy, an Italy-based pet care startup, raised $1.1M in Pre-Seed funding to to revolutionize the pet wellness market
  Investors: 360 Capital and three business angels, including Nicola Drago (VP DeA Capital), Claudio Bellinzona and Fabio Zecchini (both former co-founders of Musement)