Finance took centre stage at the COP27 climate talks this week. The success of the summit heavily depends on finding an agreement on the "loss and damage" mechanism to scale up financing for developing countries which are being heavily hit by climate change.
The exact mechanism and conditions are however hard to reach a consensus for and previous commitment have already fallen short. In fact, developed nations have still not followed through on a promise made in 2010 to give $100B a year in aid to poorer countries by 2020.
In the startup world, Climate Fintech startups are doing their part by facilitating climate action and driving decarbonization, and are being fueled by record amounts of VC funding.
Climate Fintech funding has in fact increased massively in the last two years, raising $2.2B in 2022 so far, already more than the $1.8B raised in 2021 and over 3x 2020 total.
👎 Climate finance isn't reaching African communities - Indigenous peoples and local communities receive less than 1% of all climate funding despite scoring wins for people and nature - Climate change news
🇺🇸 Arta Finance raised a $90M Series A to provide individuals access to alternative assets including private equity, venture capital, private debt and real estate.
Other notable fintech deals from around the globe:
🇬🇧 Plend, an ethical consumer lender, has raised £40m in debt and equity, from a host of investors including Monzo co-founders Gary Dolman and Paul Rippon. Plend is also currently Pending B Corp status, making it the first UK consumer lender to adopt the environmental, social and corporate governance standards required by the certification.
🇳🇴 Kravia, has raised a $5M Seed Round for its cloud-based payment, invoice management and collection platform. The debt collection sector is attracting great attention while the loom of a recession and rising interest rates.
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