Watershed, a company focused on helping businesses manage their carbon footprint, just got a big boost. They've raised a substantial $100 million in their latest funding round, known as Series C. This money is coming from some pretty big names, and it shows that a lot of people are putting their faith in climate tech right now. It seems like companies are really starting to pay attention to their environmental impact, and Watershed is right there to help them figure it out.

Key Takeaways

• Watershed secured $100 million in Series C funding, bringing their company valuation to $1.8 billion.
• The funding round was led by Kleiner Perkins, with significant contributions from other major watershed investors like Sequoia Capital and Greenoaks Capital.
• This investment highlights the growing need for companies to track and report their carbon emissions, a trend driven by increasing regulatory pressures and public demand for transparency.
• Watershed plans to use the new funds to improve its software, grow its team, and expand its services globally, particularly in areas like emissions measurement and sustainability reporting.
• The company's growth reflects a broader shift where climate action is becoming a core part of business strategy, moving from optional to mandatory.

Watershed Secures Significant Series C Funding

Record-Breaking Investment Round

Watershed just announced a massive $100 million Series C funding round. This is a pretty big deal, showing just how much investors are betting on climate tech right now. The company's valuation has now hit $1.8 billion, which is a huge jump and really speaks to the progress they've made.

Company Valuation Soars

It's not every day you see a company's valuation climb this high, especially in the climate space. This latest funding round, led by Greenoaks Capital, puts Watershed at a $1.8 billion valuation. It seems like the market is really catching up to the idea that climate action is good business. This kind of financial backing is exactly what's needed to scale solutions.

Fueling Future Growth

So, what's all this money for? Watershed plans to use these funds to really push forward. That means accelerating their product development, which is always exciting to see. They're also looking to expand their team and grow their operations globally. It sounds like they're getting ready for some serious expansion, especially in Europe. They're also focused on improving their sustainability reporting solutions, making it easier for companies to get their carbon accounting in order. This investment is clearly about building out their capacity to help more businesses tackle their climate goals, and it’s great to see how they're planning to use it to improve climate programs for their clients.

Leading Watershed Investors Drive Climate Tech Momentum

It's pretty clear that the climate tech space is heating up, and a big part of that is thanks to some serious backing from major players. Watershed's recent Series C funding round, which brought in a hefty sum, was spearheaded by some really well-known venture capital firms. This isn't just about money; it's about these investors signaling their belief in the future of corporate climate action and the tools that make it happen.

Kleiner Perkins Leads the Charge

Kleiner Perkins, a firm with a long history of backing successful tech companies, took the lead on this Series C round. Their involvement is a big deal. It shows they see the growing need for companies to get serious about their environmental impact and that Watershed is the company to help them do it. This kind of validation from a firm like Kleiner Perkins really puts a spotlight on Watershed's platform and its potential.

Sequoia Capital's Continued Support

Sequoia Capital is back in the game, showing their ongoing commitment to Watershed's mission. Having them reinvest is a strong vote of confidence. It suggests that their initial investment was a good one, and they expect even bigger things to come. It’s not uncommon for established investors to double down when they see a company hitting its stride, and that seems to be the case here.

Greenoaks Capital's Strategic Investment

Greenoaks Capital also participated in this funding round, and their perspective is particularly interesting. They've pointed out that carbon measurement and climate disclosures are rapidly moving from being optional extras to outright requirements. This shift is exactly why platforms like Watershed are becoming so important. Greenoaks' investment highlights the strategic timing of this funding, aligning perfectly with the increasing regulatory and market pressures for corporate climate accountability.

The landscape for businesses is changing fast. What was once a nice-to-have is quickly becoming a must-do, and companies that don't adapt will likely fall behind. This funding round is a clear indicator that investors recognize this fundamental shift.

The Growing Imperative for Carbon Accountability

It feels like suddenly everyone is talking about carbon. For years, it was a niche topic, something environmental groups worried about. But now? It’s front and center for businesses everywhere. Companies are facing a tidal wave of pressure to be transparent about their environmental impact. This isn't just about looking good; it's becoming a fundamental part of doing business.

Increasing Pressure for Carbon Disclosure

We're seeing a big shift. What used to be voluntary is rapidly becoming mandatory. Governments around the world are stepping in with new rules. For instance, California has passed laws requiring companies to report their Scope 1, 2, and 3 emissions. The European Union has similar requirements for companies trading on its stock exchanges. This means businesses need to get serious about tracking and reporting their greenhouse gas pollution, or face potential penalties. It’s a complex area, and getting accurate carbon accounting right is key for policymakers to create effective climate policies. Understanding these rules is no longer optional.

The Rise of Climate Business

This increased focus on emissions is changing how companies operate. It's not just about compliance anymore; it's about strategy. Businesses are realizing that understanding their carbon footprint is directly linked to their long-term value and resilience. Climate action is becoming a core part of business operations, not just an add-on. This trend is often summed up by the phrase, "Climate business is becoming the business."

Mandatory Reporting Requirements

The landscape of reporting is changing fast. Here’s a quick look at some key developments:

• EU's Corporate Sustainable Reporting Directive (CSRD): This requires detailed sustainability disclosures from companies operating within the EU, including many U.S. companies with European subsidiaries.
• SEC's Proposed Climate Disclosure Rule: The U.S. Securities and Exchange Commission is moving towards requiring companies to disclose climate-related risks, including various scopes of emissions.
• State-Level Legislation: States like California are enacting their own climate disclosure laws, adding another layer of complexity for businesses operating across different jurisdictions.

The push for carbon accountability is driven by a mix of regulatory action, investor demands, and a growing awareness of climate risks. Companies that get ahead of these requirements will be better positioned for the future.

This shift means that tools and platforms that help companies measure, report, and reduce their emissions are becoming incredibly important. It’s a complex challenge, but one that businesses are increasingly eager to tackle.

Watershed's Platform for Corporate Climate Action

Measuring and Reducing Emissions

Companies today are really starting to get serious about their environmental impact. It's not just about looking good anymore; it's about actually doing something. Watershed's platform is built to help with that, starting with figuring out exactly where all the emissions are coming from. They pull data from different parts of a business, like energy use, travel, and supply chains, to build a clear picture. This isn't just a rough guess; the goal is to get data that's good enough to be audited. Once you know your numbers, you can actually start making plans to cut them down. It’s about finding those emission hotspots and then figuring out practical ways to reduce them.

Sustainability Reporting Solutions

Reporting on sustainability is becoming a big deal, and frankly, it’s getting complicated. New rules are popping up everywhere, and companies need to show what they're doing. Watershed offers tools to help make this process less of a headache. They help you put together reports that meet various requirements, whether it's for regulators or for investors who want to see your progress. This includes things like tracking your carbon footprint and other environmental metrics. The software aims to make this reporting process more straightforward, so businesses can focus on their climate goals instead of getting lost in paperwork. It's about making your climate actions transparent and easy to understand.

Expanding Global Operations

Watershed isn't just staying put. They're actively working to grow their reach and help more companies around the world tackle their climate challenges. This means adapting their platform to different regions and regulations, which is no small feat. They've also been busy acquiring companies that add to their capabilities, like VitalMetrics, which brought in a lot of emissions data. Plus, they launched Watershed Disclosures, a product specifically designed to help with reporting and even connect companies with ways to fund clean energy projects. It all points to a company that's serious about scaling its impact and becoming a go-to partner for businesses looking to make real climate progress. The Deloitte–Watershed Alliance is another example of how they're building partnerships to help clients achieve measurable results.

Key Investors in Watershed's Growth

Prelude Ventures' Commitment

Prelude Ventures is a firm that really focuses on climate tech, so it makes sense they'd be backing Watershed. They're all about investing in companies that are trying to make a real difference in the environmental space. Their involvement signals a strong belief in Watershed's mission to help businesses get a handle on their carbon footprint. It's not just about the money; it's about partnering with folks who get the urgency of climate action.

Galvanize Climate Solutions' Role

Galvanize Climate Solutions is another big player in the climate investment scene. They've been actively supporting companies that are developing solutions for a more sustainable future. For Watershed, having Galvanize on board means they're getting support from investors who understand the complexities of climate tech and are committed to seeing these solutions scale. They seem to really believe in the power of technology to tackle big environmental problems.

Emerson Collective's Contribution

Emerson Collective brings a unique perspective to the table. While they invest across various sectors, their commitment to social and environmental impact is clear. Their support for Watershed highlights the growing recognition that climate action is not just an environmental issue, but a societal one. It's great to see them backing a company that's helping businesses become more accountable for their environmental impact. This kind of broad support from diverse investors is exactly what climate tech needs to thrive.

The Evolving Landscape of Climate Disclosure

EU's Corporate Sustainable Reporting Directive

The European Union has put in place some pretty strict rules with its Corporate Sustainable Reporting Directive (CSRD). Basically, if your company does business in the EU, or is listed on an EU market, you've got to report on your sustainability efforts. This isn't just for EU companies either; U.S. businesses with a presence there will likely need to comply too, provided they meet certain size requirements for assets, revenue, and employees. It's a big shift towards making companies more accountable for their environmental and social impact.

SEC's Proposed Climate Disclosure Rule

Over in the U.S., the Securities and Exchange Commission (SEC) has been working on its own climate disclosure rules. While still in the proposal stage, the idea is to make companies report on climate-related risks. This includes things like their greenhouse gas emissions (Scope 1, 2, and 3) and how they're managing those risks. It's a move that signals a growing expectation for transparency in how businesses are addressing climate change.

State-Level Climate Legislation

Beyond federal regulations, individual states are also stepping up. California, for instance, has passed laws that require companies to disclose their carbon emissions. One such law, SB 261, mandates that companies with over $500 million in revenue must report on their climate-related financial risks starting in 2026. These disclosures need to follow the framework set by the Task Force on Climate-related Financial Disclosures (TCFD), which means looking at both physical risks, like extreme weather, and transition risks, such as new regulations. This patchwork of state laws adds another layer of complexity for businesses operating across different regions. You can find more details on California's SB 261 requirements.

Watershed's Strategic Expansion and Acquisitions

Accelerating Product Development

Watershed isn't just sitting on its new funding; they're actively putting it to work. A big chunk of that $100 million Series C is earmarked for pushing their product development forward. Think faster, more accurate tools for companies trying to get a handle on their environmental impact. They're aiming to make it even easier for businesses to measure, report, and ultimately cut down their emissions. This means more features, better integrations, and a platform that keeps pace with the rapidly changing world of climate regulations and corporate responsibility.

Acquisition of VitalMetrics

To really beef up their data capabilities, Watershed made a smart move by acquiring VitalMetrics. This company was already known for its extensive emissions database, the Comprehensive Environmental Data Archive. By bringing VitalMetrics into the fold, Watershed instantly gained a massive amount of historical and current emissions data. This acquisition is a game-changer for providing clients with the most detailed and accurate carbon accounting possible, which is super important when you're dealing with complex supply chains and global operations. It really solidifies their position as a leader in the climate tech space.

Launch of Watershed Disclosures

Last year also saw the debut of Watershed Disclosures, a new software product designed specifically to help clients with their sustainability reporting. It’s built to streamline the often-tedious process of putting together reports that meet various regulatory and stakeholder demands. Plus, it integrates with their Watershed Marketplace, allowing customers to directly fund initiatives like clean power and sustainable aviation fuel. This dual approach – simplifying reporting while enabling action – shows how Watershed is thinking holistically about corporate climate strategy. It’s all about making it practical for businesses to not just report their footprint but also to actively invest in solutions. For companies looking to comply with new rules like California's SB 253 and SB 261, having a platform that automates data collection and supports audit-ready documentation is key compliance-grade infrastructure.

Watershed is growing fast! We've been making smart moves by expanding our reach and bringing new companies into our family. This helps us offer even better solutions to our clients. Want to see how we're shaping the future? Visit our website to learn more about our latest developments.

Looking Ahead

So, Watershed pulling in another $100 million is pretty big news. It shows that investors are really starting to see climate tech not just as a good idea, but as a solid business opportunity. With more rules coming down the pipeline about tracking carbon and companies feeling the heat to be more open about their environmental impact, tools like Watershed's are becoming less of a nice-to-have and more of a must-have. This funding means they can keep building out their platform and help more businesses figure out their carbon footprint and what to do about it. It feels like we're at a turning point where taking care of the planet is actually becoming good for business, and Watershed is right there in the middle of it.

Frequently Asked Questions

What is Watershed and why did it get so much money?

Watershed is a company that helps other businesses keep track of their pollution and figure out ways to lower it. They just got a big amount of money, $100 million, from investors who believe their work is important for the future. This money will help them grow and make their tools even better.

Who are the main investors in Watershed?

Some of the big names investing in Watershed include Kleiner Perkins, which led the funding round, and other well-known firms like Sequoia Capital and Greenoaks Capital. These investors have a history of supporting companies that are trying to make a positive impact.

Why is tracking pollution so important right now?

Many companies and governments are realizing that it's crucial to know exactly how much pollution is being produced. There's a growing demand for businesses to be open about their environmental impact. Plus, new rules are coming that will require companies to report their pollution levels.

How does Watershed help companies with their pollution problems?

Watershed provides a special computer program that helps businesses measure their pollution, report it clearly, and find ways to reduce it. They also offer tools to help companies with their sustainability reports, which are becoming more and more necessary.

What are some of the new rules about pollution reporting?

In places like the European Union and some parts of the U.S., new laws are being put in place that will make companies report their carbon emissions. The U.S. Securities and Exchange Commission (SEC) is also working on rules for climate-related disclosures. These rules are designed to make businesses more accountable for their environmental actions.

What does Watershed plan to do with the new money?

With the $100 million they received, Watershed wants to make their software even more powerful, hire more people to help businesses, and expand their services to more countries around the world. They also bought a company called VitalMetrics to help them get better data on pollution.