Funga is a fast-growing carbon removal company that uses forest fungi to capture carbon. The Texas-based company raised $4 million in seed funding to bring its technology out of the lab and into the forests. The funding round was led by Azolla Ventures, with participation from Trailhead Capital, Better Ventures, and Shared Future Fund. Funga aims to use its funding to develop proprietary software and datasets, scale up forest microbiome restoration projects, and offer high-quality, sustainable carbon-removal solutions.
Nature-based carbon removal
Funga is a carbon removal company leading the charge in nature-based solutions, using forest fungi to capture carbon. It is the first company to be powered by belowground fungal biodiversity restoration, using modern DNA sequencing and machine-learning technology with breakthrough research on the forest microbiome.
The reintroduction of wild soil microbial biodiversity can accelerate plant growth by an average of 64%, accelerating carbon capture. Funga's technology applies fungal microbiomes to improve forestry growth and mitigate climate change. Funga places the right native, biodiverse communities of mycorrhizal fungi that restore belowground fungal communities, significantly accelerating plant growth and carbon capture.
Fungal microbiome and carbon capture
Funga's approach is based on Dr Colin Averill's two decades of research on how soil microbial biodiversity impacts how forests act as carbon sinks. Dr Averill, the company's founder, discovered the plant growth (64%) and carbon capture potential of reintroducing wild soil microbial biodiversity. Fungi play a significant role in accelerating tree growth and the carbon capture ability of forests. As Dr Averill explains, ‘An entire galaxy exists below our feet, made up of millions of species of bacteria and fungi. These microscopic organisms have profound effects on forest growth and carbon capture that until now have been overlooked as a way to accelerate natural climate solutions while also restoring essential microbial biodiversity to our soils.’
Seed funding
Funga recently raised $4 million in seed funding, led by Azolla Ventures, with participation from Trailhead Capital, Better Ventures, and Shared Future Fund. This funding will allow Funga to bring its technology out of the lab and into the forests, scaling up the development of proprietary software and datasets, expanding its forest microbiome restoration projects’ footprint, and offering a new class of high-quality, sustainable carbon removal solutions. The funding round was an equity round where notes were converted into equity.
Funga's goals
Funga's goal is to capture at least three billion tonnes of carbon dioxide (CO2) by 2050 through rewilding forests. It will measure how much additional carbon is sequestered through forest microbiome restoration and make the results available to corporate buyers under its carbon removal portfolio. Each tonne of CO2 captured will generate one unit of carbon removal credits. Companies looking to offset their footprint can buy these carbon credits as part of their reduction strategy. Funga has partnered with Conservation Resources, an investment organisation that invests in real asset properties, to establish its first forest restoration projects in Georgia. The company aims to establish an additional 2,500 acres of forest-restoration projects within the loblolly pine footprint of the southern United States.
A surge in interest in carbon credits
The carbon marketplace is experiencing a surge in interest as companies and governments look for ways to compensate for their carbon footprint. The recent surge in interest has led to a significant increase in carbon credit demand. Carbon credits are tradable permits representing the right to emit one metric tonne of CO2 or equivalent greenhouse gas. Carbon credits are bought and sold in the carbon marketplace, allowing organisations to compensate for their carbon emissions by supporting projects that reduce carbon emissions.
As the carbon marketplace continues to grow, companies like Funga and DGB Group are well-positioned to play a significant role.
Funga's technology has the potential to sequester at least three billion tonnes of carbon dioxide through rewilding forests by 2050. The company will measure how much additional carbon dioxide is captured due to forest microbiome restoration and will make this available to corporate buyers as part of their carbon removal portfolio.
The surge of interest in the carbon marketplace has led to significant investments in companies like Funga and DGB, which play a critical role in helping governments and corporations achieve their net-zero goals. With Funga's innovative technology and DGB's expertise in the development and operation of carbon projects, these companies are well-positioned to provide high-quality, sustainable carbon removal solutions that will significantly impact the environment.
Funga's innovative approach to carbon capture is a game-changer for the carbon marketplace. With its focus on nature conservation and helping biodiversity flourish, Funga is helping governments and corporations achieve their net-zero goals via verified emission-reduction credits. The recent seed funding raised by the company, coupled with its ambitious goals, is a testament to the company's potential to become a leading player in the carbon marketplace.
As a project developer of high-quality, large-scale carbon and biodiversity projects accredited by leading verification standards, DGB is excited to see Funga's continued growth and success.
