- Stripe Inc. is partnering with Deep Science Ventures (DSV) to fund up to US$500,000 for each carbon-capture startup of DSV scientists.
- Stripe has committed US$9.0 million to various carbon-removal projects.
- The fintech company plans to go public and hire legal experts to help advise on the listing.
Payments company Stripe Inc., which is planning to go public, is investing heavily to develop a robust carbon-capture ecosystem and help propel its growth in the future.
Stripe is promoting and investing in promising startups to achieve that goal. The Dublin-headquartered company with offices in the US has recently secured an agreement with London-based investment firm Deep Science Ventures (DSV) to fund carbon-capture startups. As part of the deal, it will invest US$500,000 for each selected project.
DSV hires top scientists to explore ways to remove carbon dioxide from the atmosphere. As part of the partnership, Stripe will be the first customer of projects developed by DSV scientists.
The initial payment of US$500,000 will be supplemented by an additional US$1.0 million to startups achieving performance milestones, Wall Street Journal reported citing Stripe.
This partnership is another step in Stripe’s efforts to create a market for new and developing technology. With global warming becoming a major threat to humanity, carbon-removal technology offers hope. In addition, the potential curbs on pollution-emitting industries present tremendous opportunities for the carbon capture market.
Highlighting the urgency of the danger, the United Nation's scientific panel advocates reducing carbon in the air and removing it. However, it thinks the capability to remove carbon dioxide from the atmosphere on a scale needed would take time to develop.
Stripe is more than eager to tap the potential in the carbon sequestering market. Stripe’s head of climate Nan Ransohoff told WSJ that only a few companies are developing technological know-how to permanently remove carbon on a scale needed.
Source – Pixabay
However, besides Stripe, other companies are also investing in carbon removal projects.
For instance, Microsoft Corp. has invested in Switzerland-based carbon-capture and storage company Climeworks. E-commerce firm Shopify Inc has invested in Swiss Re, while Coca-Cola buys carbon from Climeworks for its carbonated drinks.
In April 2019, Stripe had first made known its plans to fund carbon removal projects. It had committed US$9.0 million for such projects.
Stripe plans to fund all projects related to the carbon market. For instance, companies involved in capturing carbon directly from the atmosphere, carbon storage activities like in the form of a rock, using it in building materials or dumping in the seabed as kelp.
Meanwhile, Stripe has linked its operating payment infrastructure to its climate project tool, Stripe Climate. It was introduced one year ago, in which Stripe customers can donate money for carbon-removal projects. In one year, some 9,000 Stripe’s business users contributed nearly US$3.0 million to the fund.
Stripe offers businesses its payment software to manage their revenue. Its clients include financial institutions, regulators, payment networks, banks, and wallets. It deals in more than 135 currencies, and its software is used in over 35 countries.
Big companies like Amazon, Google, and SalesForce also use Stripe services. Stripe’s competitors are PayPal, Square, and Braintree.
Finally, Stripe has received support from many stakeholders in the carbon sequestering industry and other sectors. Nevertheless, Stripe's efforts is a small step forward in building a resilient carbon-capture ecosystem and contributing to the global fight against climate change.
Stripe, valued at US$95 billion in January, is considered one of the most valuable startups in the US. It plans to go public but hasn't revealed a timeline. It has hired legal firm Cleary Gottlieb Steen & Hamilton LLP to help in the early-stage listing preparation.