Xilva raised $1.8m to build marketplace for forest investments

Xilva, a global platform for investments in regenerative forests, announced it has raised $1.8 million in a pre-seed round from Brainforest, Bloomsbury Natural Capital, Insurtech.vc and a group of international angel investors. The funds will be used to further develop technological solutions and scale marketing and operations.

Founded in 2021 by a team of experienced entrepreneurs and foresters, Xilva uses a proprietary methodology to assess forest projects and thus 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.

The company has already signed contracts with an Australian real estate group, Goodman, and a Swiss watchmaker, Mondaine, facilitating transactions worth over $1.9 million towards forestry projects in Asia and Latin America and contributing to the compensation of over 152,000 tons of CO2. Its goal is to combat climate change while protecting biodiversity, benefiting local communities and enabling the full range of ecosystem services provided by forests.

“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 confident that they are buying trustworthy credits and transparency throughout the process,” notes Tim Duehrkoop, Xilva’s Co-founder and CEO.

Recent media investigations have cast a shadow on the Voluntary Carbon Market, suggesting that a large percentage of carbon offsets are worthless. With a team of forestry experts, Xilva gathers and cross-references data from multiple sources. It then conducts further due diligence using its proprietary methodology Xilva GRADE, which assesses the potential impacts and risks of each project and allows capital providers to invest in those that match their ideal profile.

In its August 2021 report, the Intergovernmental Panel on Climate Change (IPCC), made it clear that deforestation is a direct cause of the increased presence of CO2 in the air over the past decade, a rise incomparable to any other period in the past 2 million years. 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.

“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” commented James Griffiths from Bloomsbury Natural Capital, a UK-based early-stage VC that specialises in natural assets and climate impact.