Corporate sustainability platform Watershed announced today that it has raised $100 million in a Series C funding round, with proceeds intended to support the expansion of its solutions and achieve corporate climate action.
The fundraising round values Watershed at $1.8 billion, which would make it the most valuable climate software company in the world.
Founded in 2019, San Francisco-based Watershed provides a corporate sustainability platform that enables companies to measure, report and reduce their greenhouse gas emissions to meet their climate objectives and comply with regulatory reporting requirements of sustainability. The company's solutions include a climate database for granular emissions measurement, software tools for sustainability reporting and supply chain engagement, and a marketplace for companies to access carbon removal and clean energy projects. Watershed's client base includes General Mills, Suncorp, Medline, BBVA, Paramount, Spotify, Klarna, 4 of the 6 largest US banks and 6 of the 10 largest private equity firms.
According to Watershed, the company has experienced significant growth since its $70 million Series B fundraising round in 2022, with its customer base now managing 479 million tonnes of CO2e, up from 20 million, and with the recent acquisition of the CEDA greenhouse gas emissions database, the launch of its corporate climate disclosure software solution, Watershed Disclosure, and the establishment of partnerships with companies and organizations including KPMG, Accenture, ERM, PCAF.
Watershed said the new funding will support the company's investments in emissions measurement, sustainability reporting and decarbonisation solutions, and the company aims to expand its presence in the UK and Europe.
Watershed co-founder Taylor Francis said:
“Corporate climate action is accelerating. Companies of all sizes and sectors are making sustainability a board-level priority, and we support them as they work to measure, report and reduce their emissions. This new investment will reinforce our mission to accelerate the climate economy.”
The funding round was led by technology-focused investor Greenoaks and included participation from existing investors including Kleiner Perkins, Sequoia Capital, Elad Gil, Emerson Collective, Galvanize Climate Solutions and Neo, among others.
Neil Mehta, managing partner at Greenoaks, said:
“Carbon measurement and climate disclosures are quickly moving from optional to mandatory. We believe Watershed has emerged as a market leader, with a sophisticated data engine that is already best in class and gets even better with scale. That's why they've become the first choice for the world's largest, most complex companies, who trust Watershed to measure rigorously, report accurately, and act decisively. We are delighted to partner with the Watershed team as they pursue this urgent and important mission.”
