So-called “regenerative” farming, which is said to be less harmful to soils and biodiversity than conventional farming, offers an opportunity to reduce carbon emissions and alleviate the climate crisis. It also maintain the yields we have from modern farm methods. Global food production generates at least a quarter of climate-heating greenhouse gas emissions, and more than 80% comes from agriculture. Berlin-based agri-tech startup Klim is working to get farms to switch to regenerative farming more easily.
It’s now secured a $22 million Series A funding round led by Europe’s largest bank BNP Paribas. In 2022 it closed a $6.6 million seed raise, led by Berlin-based food and green tech investor, Green Generation Fund.
This round makes it one of the largest for agri-tech in Europe this year.
With Klim, farmers get tools to plan, execute, and finance the transition to regenerative practices. This includes data on restoring soil health, biodiversity, capture carbon, and reducing emissions.
Klim was founded in 2020 in Berlin by Robert Gerlach, Nina Mannheimer, and Adiv Maimon. Farmers use the Klim platform to track the progress of their transition and prove it to supply chain partners, enabling them to earn revenue payouts for sequestered carbon. Klim then takes a commission on the sale of carbon “insets” linked to supply chains. Farmers can then generate revenue from these by selling them on Klim’s marketplace. In turn, food companies can buy these “ecosystem services” to make their supply chains greener, especially as emissions reporting requirements increase. In other words, a farmer gets paid for “farming carbon” as much as raising and selling crops or cattle.
So far, it’s garnered 3,500 farmers for the platform, which equates to 700,000 hectares of land, representing 5% of German farmland, according to the company.
Clients now include agri-giants Nestlé, Kaufland, and Aryzta.
Speaking to TechCrunch, Klim CEO Robert Gerlach, said that given the world is gradually losing more soil, and many global soils having already lost 50% of their original organic carbon stock, “there’s a really urgency to transition farmland to regenerative practices.”
He says the new funding sees Klim expanding internationally outside of Germany.
In a statement, Maha Keramane, head of BNP Paribas’ Positive Impact Business Accelerator, added: “Klim’s innovative platform and approach to scaling regenerative agriculture are perfectly aligned with our commitment to financing solutions that mitigate climate change, make the ecosystems more resilient and improve people’s livelihoods.”
However, Klim is not alone in this space, especially in Europe, where agri-tech is a well-developed sector.
For instance, Agricarbon, based in Dundee, Scotland, measures and validates soil carbon capture and storage for farms and carbon markets. It’s raised over €14 million.
Also participating in the Klim funding round were European and U.S.-based VCs including Earthshot Ventures, Rabobank, Agfunder, Norinchukin Bank, Achmea, Ananda Impact Ventures, and Elevator Ventures, the VC of Raiffeisenbank International.
