Swiss startup Xilva is on a mission to connect capital to forests with enhanced due diligence. The Zurich-based team has now secured €1.6 million ($1.8 million) to scale.
Deforestation is a direct cause of the increased levels of CO2 in the air. It’s something that has happened at devastating levels for generations, and its impact has direct consequences for life on earth. Trees absorb carbon dioxide and afforestation is a sustainable, nature-based solution that can play a major role in the fight against climate change.
For that reason, many carbon credit projects focus on afforestation. They claim to plant trees to offset carbon use and bring us towards net zero. However – too many carbon offsets are essentially worthless – lacking in due diligence and a by-product of greenwashing.
Aiming to address this, by taking more transparency and efficiency to the carbon credit marketplace is Xilva. The Swiss startup has just secured €1.6 million ($1.8 million) for its digital marketplace for forest investments.
The pre-seed funding saw participation from Brainforest, Bloomsbury Natural Capital, Insurtech.vc and a group of international angel investors.
James Griffiths from Bloomsbury Natural Capital: “Xilva brings together finance and forest-positive projects. By accelerating access to capital, Xilva will boost the rate at which forestry can sequester carbon and increase biodiversity.”
Founded in 2021 by a team of experienced entrepreneurs and foresters, Xilva aims to connect capital to forests, ensuring a transparent and seamless deployment of investment.
The startup leverages a proprietary methodology to assess forest projects and reduce potential risks related to investing in carbon credits and nature restoration initiatives. It conducts the due diligence process through its Xilva GRADE® platform and provides certified carbon credits for companies as well as investment opportunities for their future needs.
So far, the green innovators have signed contracts with an Australian real estate group, Goodman, and a Swiss watchmaker, Mondaine. Cumulatively, they have facilitated transactions worth over $1.9 million towards forestry projects in Asia and Latin America and contributed to the compensation of over 152,000 tons of CO2.
Afforestation can slow the impact of climate change while also addressing other environmental issues, such as barren land and soil erosion. Research from Crowther Lab showed that 1 trillion new trees could absorb one-third of CO2 emissions made by humans. In fact, an additional 25% of forested land could sequester 25% of atmospheric carbon, making a significant global impact on rising temperatures.
For Xilva, the end goal is to fight climate change whilst protecting biodiversity, benefiting local communities and enabling the full range of ecosystem services provided by forests.
With this investment, Xilva plans to further develop technological solutions and scale marketing and operations.
Tim Duehrkoop, Xilva’s co-founder and CEO: “On our platform, there is a curated portfolio of over 40 investable projects, and we plan to source and screen 100 more in the next three months. Forests can absorb carbon at a larger scale and lower cost than any human-made solution. The main benefits for the companies getting carbon credits with the help of Xilva are confidence that they are buying trustworthy credits and transparency throughout the process.”