August 8, 2024

By Gerelyn Terzo, Global AgInvesting Media

After securing €5 million (US$5.4 million) in seed capital in early July, Dornbirn, Vorarlberg, Austria-based Tree.ly, a startup dedicated to protecting European forests, is well capitalized for its carbon offset projects. Participants in the round included PortfoLion Capital Partners, aws Gründungsfonds, SymbiaVC and tyrolean business angel (tba) network, the proceeds from which will accelerate Tree.ly’s growth while supporting its mission to unlock the full potential of European forests.

Founded in 2021, the Tree.ly online platform matches forest owners with companies to facilitate the purchase of high-quality carbon credits backing forest owners who then generate an additional income stream for their land. The company carries out high-quality climate protection projects in European forests, making verified credits available to ensure the greatest impact.

In the nearly two decades leading up to 2019, forests worldwide sequestered approximately twice as much carbon dioxide as they released, according to Nature Climate Change data cited by the World Resources Institute (WRI). Forests serve as a “two-way highway,” WRI explained, that collect CO2 while growing and release it during clearing or degradation. However, forest ecosystems have come under pressure, owing to the effects of climate change.

Tree.ly points to research showing that “€1 (US$1.09) invested in a forest has the same ‘protective quality’ as €150 (US$163) invested in technical solutions.” Tree.ly has managed to achieve the best of both worlds. The company’s founder and managing director, Jodok Batlogg, spent some time with GAI News to discuss his company’s solution as well as the capital raising environment for agtech startups.

1). GAI News: Congrats on the seed capital round! Can you share your vision for creating Tree.ly?

Batlogg: Tree.ly was founded with the vision of leveraging the best of technology and nature to approach our climate change challenge. Our mission is to unlock the full potential of European forests, helping forest owners to increase the carbon storage potential of their forests by facilitating corporate contributions into sustainable forest management efforts. We believe in voluntary CO2 credits as a powerful mechanism to steer the world towards net-zero emissions. Our approach emphasizes transparency, scientific validation and regional impact, providing a tangible and verified method for companies to contribute to climate-resilient forest projects.

2). GAI News: How did Tree.ly’s recent fundraising take shape?

Batlogg: In our recent seed round, we raised €5 million from our investors: PortfoLion, aws Gründerfonds, SymbiaVC, the Tyrolean Business Angel Network and Angel Investors from the PreSeed Round. We are extremely excited that in today’s market, we have been able to show that climate tech with a focus on high-quality and regional projects continues to gain momentum within the industry.

In the latest fundraising round, we worked with new partners that represent a mix of our strong local presence and our expansion strategy across broader Europe. We feel incredibly supported by our investors who share our vision of the importance of nature-based ecosystems in combination with innovative tech.

3). GAI News: How was Tree.ly able to secure the capital in a challenging environment for startup fundraising?

Batlogg: It was definitely a challenging fundraising round! A couple of factors played a role, like our proven business success with adoption of our product on both the forestry and carbon-buyer side. Our innovative approach to regionality and our high-quality standard were also really important in the decision-making.

Our use of advanced technologies, such as remote sensing and digital platforms as well as the strict project monitoring, auditing, and certification processes, have positioned us as a leader in the space. We’ve seen increased demand for reliable, premium and local carbon credits among companies aiming to meet their sustainability goals, driving investor interest in our projects.

4). GAI News: How will the company direct the proceeds from the seed round?

Batlogg: The new funds will be used to develop the next version of the standard for certifying climate protection performance as well as further advance the functionality and automation of the platform. Overall, it will allow us to scale our operations across Europe on both the forest and carbon-buyer sides.

5). GAI News: Can you explain in greater detail the role of technology in Tree.ly’s carbon contribution program?

Batlogg: Technology is central to Tree.ly’s offering. We use remote sensing methods and satellite imagery to conduct precise forest inventories and have streamlined all elements of the process on a SaaS platform that includes geospatial engines, machine learning-powered stock measurement, species detection and stock change modeling capacities. This supports the validation and verification processes required for issuing carbon credits. This technological foundation ensures the reliability and transparency of our projects, providing stakeholders with confidence in the impact of their contributions.

6). GAI News: What can you tell us about the scope and impact of your business?

Batlogg: Currently, contracts cover 180,110 hectares (445,062 acres) of forest in Austria, Germany, Italy, the Netherlands, and the Czech Republic. Tree.ly’s innovative, already certified high-integrity projects have contractually secured a CO2 storage capacity of over 2.8 million tons of CO2, supporting companies on their path to net-zero emissions and allowing them to make a direct positive impact on the environment close to home.

7). GAI News: What extreme locations does Tree.ly focus on?

Batlogg: Tree.ly focuses on a variety of forestry locations across Europe. We undertake projects in challenging environments, including mountainous regions. One of our projects, for example, has areas with altitudes between 1,000 meters (3,281 feet) and 2,700 meters (8,858 feet) above sea level. These forests experience increasing damage due to the effects of climate change, and it is costly and challenging for forest owners to maintain them. Corporate investments are critical to facilitate the transition to sustainable forest management to support the vital ecosystem services of forests.

8). GAI News: What else does Tree.ly have in the pipeline for 2024, either fundraising or otherwise?

Batlogg: Looking ahead to the rest of 2024, Tree.ly has several initiatives planned:

• Expansion of Project Portfolio: We aim to certify more projects and bring additional forest areas under sustainable management.
• Technological Enhancements: Continued development of our digital platform to provide even more accurate and efficient services to forest owners and companies.
• Increased Outreach: Strengthening our outreach and education efforts to raise awareness about the importance of sustainable forestry and climate protection projects.

GAI News would like to thank Batlogg and Tree.ly for their time and contribution.

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