◎ Company overview
Gigatonne: A next-generation platform for rapidly and fairly tackling the climate crisis
Gigatonne is a platform that sells high-integrity carbon credits. The platform connects buyers to teams contracted to do abatement activities
📑 The platform has an open protocol that sets the standards for any teams to participate in climate action. Teams are contracted (exclusive supplier agreement) to do abatement activities.
🤖 Team’s performance data will be captured on our platform. Using AI-tools we process large amounts of data – allowing the platform meet transparency and verification requirements at low cost.
♻️ We sell high-integrity super credits as offsets. Credits are sold B2B. We offer price discounts for multi-year contracts.
Our mission is reducing global greenhouse gas emissions by one billion tonnes a year while creating jobs and benefits for the world’s poorest communities. Gigatonne has the potential to cost-effectively bend the curve on the global climate crisis in 60 months.
Currently the bulk of carbon credits on the market are sub-$100 credits, many of which are based on nature-based solutions. The market relies on “carbon sweatshops,” often located in the global south, for generating cheap “sweatshop credits.” There is a lack of financial transparency means it is very hard for buyers to know what is happening along the carbon credit supply chain.
There is a need for a super credit that not only meets social standards but also results in effective climate action.
Our mission is building the world’s most effective response to the global climate crisis. We can shift the direction of the crisis in 60 months, while benefiting one billion of the poorest families on the planet.
We contract teams around the world to directly reduce ghg emissions, while providing direct benefits to people in the bottom 20% socio-economic bracket – and we do this at a pace aligned with science-based targets. Teams work on waste management, building zero emissions transport networks, renewable energy, land rejuvenation, and carbon sequestration.
We collect high-integrity data from teams meeting our standards, applying AI tools to create highly transparent super credits while lowering transaction costs.
Our super credits offer an alternative, superior, place-based product to cheap “sweatshop credits” for companies wanting to buy high-quality offsets.
- Team: has $855k raised in grants and investment and have been testing the approach for over 24 months in 94 cities across the world.
- Traction: abated 2107 tonnes CO2e abated with 966 participants and impacted 3250 families
- Proven model: We operate across the whole value chain: set standards for team, manage the data and verification and sell the buyers = Gigatonne Super Credit
- Market: carbon credit market is exploding, new regulations for corporates to offset. Carbon offset market is currently $2bn and expected to hit $50 billion annually, by 2030.
- Creating a social impact for families at the bottom 20% of socio-economic bracket and address climate change with a scalable model
- ◎ Company overview
- Gigatonne: A next-generation platform for rapidly and fairly tackling the climate crisis
- 🚀 Current traction
- 🔬 Product & Platform
- 💸 Investment opportunity
- 🧾 Commercialisation Plan
- 📊 Financial overview
- 🌍 Market size
- ♻️ Impact Thesis
- 💬 Case Study: Team Performance, Vizag, India
- 🧲 Team
🚀 Current traction
Total funding raised: $855,000. Received a $350,000 grant from One Project and raised a $500,000 pre-seed round from an angel investor (see Investors below)
We are setting up a $15m fund to cover the teams costs for 200 teams to produce 400k credits over the next 24 months.
After launching in late 2020, we have been iterating Gigatonne. We have run 146 sprints, involving 95 teams in 25 countries. Each sprint allows us to rapidly prototype and refine our approach
🔬 Product & Platform
10-in-10 operates across the value chain from providing teams with a protocol, contracting teams on the ground, high-integrity reporting and an exchange for super-credits. All the activities, data management and reporting is centralised onto The Gigatonne Platform.
Our standards for effective climate action are formalized in the Open Gigatonne Protocol. We specify seven performance levels, with targets for time, emissions reduction/removal (CO2e) and equity targets (number of families supported via employment, food and energy security).
Why are we better/different?
- We have a global strategy with multiple local footprints (distributed teams) that adds up to a more de-risked and scalable solution than pure Nature Based Solution or technology/engineering based solutions
- We operate across three parts of the value chain
- supply of carbon credits
- platform for reporting & verification
- demand - exchange of carbon credits
- We tackle abatement and equity, focusing on equity means low carbon pathways to a better life for millions of people who are most affected by climate change. Our strategy also meets science based targets, in particular time based targets
- Our open reporting platform makes it possible for all interested parties to verify, in (almost) real-time, actions on the ground and reduces the need for expensive and time consuming audits
To understand more of each component of the platform, click on each item below
💸 Investment opportunity
$4.5m equity raise (using a SAFE)
The equity raise will cover HQ costs for year 1 & 2 (marketing & sales, salaries, brand and platform - $7.5m)
At the same time we are creating a fund to manage teams and hubs
$15m Global Gigatonne Fund
We are working with 4 partners to set up the Global Gigtatonne Fund - launching 200 teams in India, Africa, the Middle East and LatAm.
Milestones for round
- Scale current operations to 30 - 35 L4 teams
- Sell 6000 credits by Q4 2023
- Super Credit price discovery
- Build and launch the brand with a focus on achieving sales ($21.5m in 24 months)
- Further develop The Gigatonne Platform: V1.0 of the Gigatonne Platform in use: Open Reporting Platform and CROI
$1m has been allocated to angels as a bridge on this round on the same SAFE terms
The company structure will be a Limited Company registered in the UK, with a subsidiary registered in India.
Next possible round: approximately 2025 Q1 (10x current raise)
VCs invested a stunning $882.2 million across 11 deals, which easily set a record for the sector. For context, total investment in the sector for the previous four quarters combined totalled $432.1 million. Beyond venture capital funding, major tech companies have offered up hundreds of millions in advance commitments to buy carbon removal services. That includes Frontier — Stripe, Alphabet and Meta are among its members — which committed to spending $925 million on carbon removal over the course of this decade.
> Carbon offset marketplace is expected to hit $50 billion annually, by 2030.
> Annual global demand for carbon offsets might reach 1.5-2.0 billion tonnes of CO2 by 2030
- Reduce 1 gigatonne of CO2e in one year.
- Catalyse a $200bn market over 10 years in super credits - capture 25% of this market.
- Reduce global emissions by 1 gigatonne of CO2e per year, thus contributing to keeping the global temperature rise well below 2°C, in line with the Paris Agreement.
Quantify the positive environmental impact of food waste minimization or valorization initiatives and monetize it through carbon credits.
Carbon project developers and operators applying best-in-class major projects know-how from mature markets, combined with leading in-house technical carbon expertise to deliver the highest quality projects with maximum sustainable development co-benefits
Financial partner confirmed
stream financing to scale high-integrity carbon credit projects to accelerate global climate action and advance the United Nations Sustainable Development Goals.
Manage and develop large-scale nature-based projects to generate biodiversity offsets and carbon offsets and help corporations achieve net zero.
Leading provider of carbon offset (compensation) projects and nature-based solutions. They provide carbon offsetting solutions for volumes over 1 million tonnes of CO2. With carbon offset certificates, e.g. carbon credits
Cleanhub platform serves as a connector between brands whose plastic products may eventually end up polluting the planet’s oceans and local collection partners who collect non-recyclable plastic in the coastal regions of developing countries.
🧾 Commercialisation Plan
Analysis of carbon credit price
The price of carbon credits can vary based on several factors, including the technology or solution used to reduce emissions, the geographic location of the project, the demand for carbon credits, and the regulatory landscape of the country or region. On the voluntary carbon markets (VCM) Nature based solutions such as reforestation and regenerative agriculture tend to have lower prices ($5 - $100) compared to technology based solutions such as DAC and CCUS ($100 - $1000). However, it is important to note that the demand for carbon credits is increasing, and prices are likely to change over time as the market evolves.
- Due to participation of multiple registries, verifiers and methodologies within the VCM, categorisations and definitions vary. Terms such as ‘community based’, ‘livelihood projects’ and ‘co-benefits’ can have multiple meanings.
Nature Based Solutions
Nature based solutions (NBS) involve using natural ecosystems to sequester carbon, such as reforestation, afforestation, and regenerative agriculture. These projects typically have lower upfront costs compared to technology based solutions, and they offer a range of co-benefits such as biodiversity conservation, soil health, improved water quality and often involve subsistence payments
The carbon credits generated from NBS projects are sold in the range of $2-100 per tonne on the VCM*
Equity Based Solutions
Some existing credits are defined as ‘Community based’ projects which solve an environmental issue whilst improving multiple other aspects of a communities wellbeing such as cook stove projects which prevent felling trees for firewood and also improve health and wellbeing whilst also protecting forest. Other community based credits are NBS credits that provide incremental payments to communities to maintain ecosystems to prevent their destruction/extraction. Neither provide significant income that equates to ongoing employment that are open to all and very few allow those in urban settings to participate.
Cook stove, afforestation and forest management ‘Community based’ credits are sold on the voluntary market for $12-50 per tonne
Technology based Solutions
Technology based solutions involve using technological interventions to reduce emissions or capture carbon directly from the atmosphere. These solutions can be expensive to implement, but they offer high potential for carbon removal and can be deployed in a wide range of settings.
Direct Air Capture (DAC), Carbon Capture Utilization and Storage (CCUS) credits range from $150-1,000 per tonne.
Sales of Gigatonne Super Credits
We have been prototyping our supply side for over 2 years and have de-risked operations. We also have a prototype for the open reporting platform that we have been testing. The VCM market exists and is expected to grow exponentially and this growth will be fuelled by availability of high-integrity credits.
In year 1, we will be focused on refining sales strategy and signing up key buyers / brokers for advanced credits. Through this process, we will have done price discovery as well. The COGS on a tonne is $200 and it will be sold for between $500 - $1000. The credit price will be determined by the duration of the sales agreement (either 1, 5 or 10 years) and the associated discount.
Sale for first 2 years are for 48000 credits:
- Year 1: 12,000 credits generated (from 10x L4 teams), 6000 will be sold by Q4 2023
- Year 2: 120,000 carbon credits generated and aim to sell 36,000 credits.
This will result in $20m in revenue (including 30% discount and transaction fees).
Sales will be a combination of direct sales to corporate clients (either offsetting or climate programmes) and brokers (average of $3m per year per broker). The sales will start towards Q4 2023 and will be based on packages which are determined by duration of sales agreement and discount.
The credit price for this would range between $600 and $1000. For each credit sold, the breakdown is as follows
In the first year we will do price discovery to determine the ideal price point for our super credit. Every year there is a credit price reduction of between 10-15%
GSCs will be sold over the counter (OTC) directly from 10in10 and through market (brokers) where the buyer will receive certificates with unique identifiers assigned to each GSC. Advance credits that are not verified will be offered on the spot market. GSC is priced at $1000 per GSC. Projected pricing model will offer GSC at $1000 for first 3 years after which a reduction of 10-15% per year will be introduced subject to team numbers and credit generation volume.
📊 Financial overview
Gigatonne operates across the 3 core parts of the carbon offsets / credits supply chain and ensures integrity and standards across all three. This is a gap in the market today.
By operating across all core parts of the value chain
- developing projects to create a supply of high-integrity credits
- a transparent reporting and verification platform
- catering to the growing demand for high-integrity credits,
We are able to meet the science based time targets, as well as equity goals to benefit the most climate vulnerable and contribute to a green economy.
Gigatonne has 3 main revenue streams:
- Selling GT Super Credits: based on packages which are determined by duration of sales agreement and discount. The credit price for this would range between $500 and $1000
- Incubators - running 6 month sprints with corporate clients, $1.5m over 2 years
- Fund fee of 5% - year 1 and 2 GT will take 10% and 5%, respectively, from the $15m raised to fund the first 200 teams. There after it will take a 5% fee on all payments made out to teams
🌍 Market size
As of November 2022, over one-third of the world’s largest publicly traded companies have announced net-zero targets. These companies are set to use carbon credits they purchase to offset emissions that are hard to completely abate, alongside actions to decarbonize their emission activities. The voluntary market has already topped $1 billion in 2021 , and the global demand for voluntary credits is forecasted to increase by a factor of fifteen by 2030, reaching 1.5 to 2 gigatons per year.
The long term goal is to catalyse a $200B per annum market in Super Credits – of which 10-in-10 captures 25%
⏳ Carbon credits help subsidize the cost of clean energy alternatives and make them more affordable for low-income households ⚡️ Scaling clean technologies, such as solar mini-grids and clean cooking stoves, to low-income households at the scale required for a net-zero future is nearly impossible 💵 Carbon credits could be used to drive down prices of these clean products, enabling a far greater product reach to households that would otherwise not be able to have access. 🎗Projects that generate carbon credits in the developing world, if executed successfully, would typically be associated with co-benefits supporting the local community
Understanding the market (value chain)
These are projects that reduce emissions and use either nature based or technology/engineering based solutions. The price per credit is generally based on the solution type. Technology based: - Direct Air Capture(DAC) - Carbon Capture, Usage and Storage (CCUS) - Carbon Mineralisation Nature based: - Re/forestation - Regenerative agriculture In these cases the solutions don't prevent emissions, reduce them, or make up for them, but capture already emitted carbon. Equity/community based: - Returning biomass to the soil - Cook stove - Water filtration These are more focused on preventing, reducing emissions.
An aggregation of projects producing credits and selling to buyers via consulting or sales transaction. More recognised platforms: Nori, Goldstandard, Native, UN Carbon offset platform, Abatable, ClimateTrade, CarbonTradeXChange and Persefoni See larger list here Limitations The main issue with the current verification platforms is that they are time consuming, expensive and opaque. Most of the marketplaces do not have their own projects and list projects that use their own verification processes
A platform or market place where carbon credits can be bought (carbon trading). There is no global marketplace for carbon trading, several regional jurisdictions have created their own markets for the exchange of carbon credits. Compliance Carbon Market In the European Union Emissions Trading System (EU ETS), which is the largest carbon market in the world, the price of carbon credits has surged to record levels in recent months, hitting €100 ($115) per tonne in February 2023. The Voluntary Carbon Market (VCM) is typically lower and more variable. The VCM allows individuals and companies to purchase carbon credits to offset their emissions voluntarily. The price of carbon credits in the VCM can range from $1 to $2000 per tonne, depending on the type and quality of the credits.
♻️ Impact Thesis
Our teams have three targets, abatement, equity, and temporal.
Abatement as measured in reduction of emissions in CO2e. At each level the target increases 10X.
Equity is measured in terms of how many families in the bottom 20% income bracket are supported via part-time employment, food security and energy security.
We strengthen food security by composting food waste and growing food. This food is then given away to families who are food insecure.
We strengthen energy security in two ways. The first is providing zero emissions transport options to families, supporting them in their work and trade. The second is that we replace LPG cylinders used for cooking in homes with biogas.
Temporal targets are set via teams working in time-boxed "sprints." Each sprint lasts either 3 or 6 months. Targets for each level are set to be achieved within a time-bound sprint.
💬 Case Study: Team Performance, Vizag, India
Located on India’s eastern coast, on the Bay of Bengal, Vizag – or Visakhapatnam – is one of India’s industrial engines and is the 14th largest city in the country. Being a coastal town and an industrial hub, Vizag is vulnerable to the effects of climate change. Therefore, it is well-positioned to be a beacon for responding to the crisis.
Historically, blue-collar workers, the Vizag team members are a local sports team. We’ve helped them launch an innovative waste management business.
They employ young people to collect food waste, compost it, and grow and give away fresh food, which helps to mitigate the effects of climate change and supports the most vulnerable in their community.
Zaid and Manish have been friends for 22 years. They met in Brazil, as part of a group exploring critical education, travelling together over 10 days. Inevitably they were the last two left awake, talking long into the night. 9-11 occurred during this trip. Over the last two decades they have developed a healthy working relationship, keeping the other accountable while learning to forgive each other. Manish brings patience, wisdom, and experience to the partnership. Zaid brings impatience, an eye for detail, and his own experience.
They both bring a shared belief that the status quo does not work for most people on the planet.
The 10-in-10 team has extensive experience across philanthropy, civil society, the private and public sectors. Former CEOs, strategists, facilitators, researchers, project managers, and community organisers. Collectively managed multi-billion-dollar foundations and agile start-ups. They have deep sectorial expertise and wide networks of relationships to draw on. Some are grizzled and others are young. They are always learners and sometimes teachers. Collectively, already supported many thousands of people in tackling complex challenges. 10-in-10 will allow us to distribute those skills and support with the speed and scale necessary to reinvent the future. All have a deep commitment to tackling complex challenges around the world.
Disclaimer: This memo and all documents presented and attached here is confidential and intended for Fundie Ventures and its affiliates. It is strictly forbidden to share any part of this document with any third party, without a written consent.
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