So, Watershed just got a huge cash injection – $100 million, to be exact. This is their Series C funding round, and it really shows how much people believe in what they're doing. It's all about helping companies get a handle on their carbon footprint. With this new money, they're looking to grow even bigger and help more businesses tackle climate change. It seems like a lot of big names are backing them, which is pretty interesting.

Key Takeaways

• Watershed raised $100 million in Series C funding, bringing their total valuation to $1.8 billion.
• Major watershed investors like Kleiner Perkins, Sequoia Capital, and Greenoaks Capital led this funding round.
• The money will be used to develop new products, hire more people, and expand the company's reach globally.
• There's a growing need for companies to track and report their carbon emissions due to new rules and public pressure.
• Watershed provides tools for businesses to measure, report, and reduce their environmental impact.

Watershed Secures Significant Series C Funding

Record-Breaking Investment Round

It's official—Watershed just landed a whopping $100 million in Series C funding. That’s not a number you hit every day, especially as a climate tech startup. This big boost pushes Watershed’s valuation to an impressive $1.8 billion. The headline here: climate technology is picking up real momentum, and investors are pouring serious cash into the sector.

Here's a quick breakdown of the Series C:

Watershed’s platform helps companies calculate and shrink their carbon footprint. The surge of interest comes as more firms face new global pressures around carbon reporting and accountability (mandatory ESG reporting).

Company Valuation Soars

What’s really striking is how quickly Watershed’s value has shot up. Their last funding round saw rapid gains, and this one rockets them to unicorn status. This isn’t just about the money on the table. Big customers like Walmart, BlackRock, and Colgate-Palmolive now rely on Watershed, validating their software in a real way.

A few things driving this surge:

• Expanding regulatory requirements for carbon reporting
• Mounting pressure from investors for verified ESG data
• Companies trying to future-proof by taking on real climate action

Watershed’s rise shows how climate disclosure and sustainability services aren’t a niche thing—they’re suddenly at the center of business strategy, not a sideline.

Fueling Future Growth

So, what’s next with all this funding? Watershed isn’t just sitting on it. They’re planning:

1. Expanding their teams in both the US and Europe.
2. Accelerating their technology—quicker emission measurement tools, easier sustainability reporting, sharper data for clients.
3. Scaling up partnerships, especially with companies needing to meet tight new disclosure rules across the globe.

It’s a busy road ahead, but with $100M in new backing and a $1.8B valuation, Watershed is setting up for a year where climate action moves from planning to doing for a lot more businesses.

Leading Watershed Investors Drive Climate Tech Momentum

Kleiner Perkins Leads the Charge

It's pretty clear that big-name investors are really starting to pay attention to climate tech, and Watershed is a prime example. Kleiner Perkins, a firm with a long history of backing successful companies, stepped up to lead this $100 million Series C round. This isn't just about throwing money at a problem; it shows a strong belief in Watershed's approach to helping businesses tackle their carbon footprint. They see the growing need for companies to get serious about their environmental impact, and they're putting their money where their mouth is.

Sequoia Capital's Continued Support

Sequoia Capital is back in the game for Watershed's Series C, which tells you something. They were part of earlier funding rounds, and their continued investment signals confidence in the company's progress and future. It’s like a vote of confidence from a seasoned player who knows what it takes to build a lasting business. Having investors like Sequoia stick around shows they believe Watershed is on the right track to becoming a major player in the climate tech space.

Greenoaks Capital's Strategic Investment

Greenoaks Capital also participated in this funding round, and their involvement is pretty interesting. They've pointed out that measuring carbon and reporting on it is moving from being optional to something that's becoming mandatory. This perspective highlights the market shift that Watershed is perfectly positioned to capitalize on. Greenoaks isn't just investing; they're backing a company that's addressing a clear and growing regulatory and market demand. It’s a smart move in a world that’s increasingly focused on accountability.

The Growing Imperative for Carbon Accountability

Record-Breaking Investment Round

It feels like just yesterday that tracking carbon emissions was a niche concern, something only the most environmentally conscious companies bothered with. But things have really shifted. Now, it's becoming a pretty big deal, and honestly, it's about time. Companies are facing a lot more pressure to be upfront about their environmental impact. This isn't just about looking good anymore; it's about real accountability. The whole landscape of business is changing, and climate action is moving from the sidelines to center stage. It's no longer a question of if companies need to report their emissions, but how and when they'll be required to do so.

Increasing Pressure for Carbon Disclosure

We're seeing a wave of new rules and expectations hitting businesses. It's not just voluntary anymore. Governments and regulators are stepping in, and the public is watching closely. This means companies need to get serious about understanding and reporting their carbon footprint. It’s a complex area, but the stakes are high. Getting this wrong can lead to fines, reputational damage, and missed opportunities.

The Rise of Climate Business

Think about it: climate change isn't just an environmental issue; it's a business issue. From supply chains to consumer demand, the effects are everywhere. Companies that ignore this are going to get left behind. The focus is shifting towards building a sustainable economy, and that means integrating climate considerations into every part of the business. It's a massive undertaking, but also a huge opportunity for innovation and growth.

Mandatory Reporting Requirements

Here's a look at some of the key changes happening:

• European Union's Corporate Sustainable Reporting Directive (CSRD): This is a big one. It requires many companies operating in the EU, even those based elsewhere, to report detailed information about their sustainability efforts and impacts. If you have significant operations or are listed on an EU exchange, you likely need to comply.
• U.S. Securities and Exchange Commission (SEC) Climate Disclosure Rule: The SEC is moving forward with its own rules, which will likely require publicly traded companies to disclose climate-related risks, including their greenhouse gas emissions (Scope 1, 2, and 3) and how they manage those risks.
• State-Level Legislation: States like California are also enacting their own disclosure laws, adding another layer of complexity for businesses operating across different jurisdictions.

The shift towards mandatory climate reporting isn't just a trend; it's a fundamental change in how businesses operate and are held accountable. Companies that adapt proactively will be better positioned for the future.

Measuring and Reducing Emissions

So, what does this all mean for companies? First, they need to accurately measure their emissions. This involves looking at everything from energy use in their buildings (Scope 1 and 2) to their entire supply chain (Scope 3). Once they know where their emissions are coming from, they can start to reduce them. This might involve switching to renewable energy, improving efficiency, or working with suppliers to lower their impact. It's a continuous process, not a one-off task.

Sustainability Reporting Solutions

With all these new requirements, companies need tools to help them manage and report their data. This is where platforms like Watershed come in. They provide software that can collect data, calculate emissions, and generate reports that meet regulatory standards. Having reliable reporting solutions is becoming non-negotiable for businesses trying to stay compliant and transparent.

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; there's real pressure to actually measure and cut down on greenhouse gas emissions. Watershed's platform is built to help with exactly that. It pulls data from all sorts of business systems – think accounting software, supply chain logs, you name it – to build a clear picture of a company's carbon footprint. This detailed view helps businesses pinpoint exactly where their emissions are coming from, whether it's from their own operations (Scope 1), the electricity they use (Scope 2), or further down the supply chain (Scope 3). Once those problem areas are identified, Watershed provides tools and insights to help companies develop strategies for reduction. It’s about making the abstract concept of emissions tangible and actionable.

Sustainability Reporting Solutions

With new rules popping up everywhere, figuring out how to report your company's sustainability efforts can feel like a maze. Watershed offers solutions to simplify this. Their software helps create reports that are not only compliant with various regulations but also clear and easy for stakeholders to understand. They've even launched specific products, like Watershed Disclosures, to make this process smoother. This means companies can spend less time wrestling with spreadsheets and more time actually improving their environmental performance. It’s a big deal because accurate reporting builds trust with customers, investors, and regulators alike.

Expanding Global Operations

Watershed isn't just focused on one region. They're actively working to support companies worldwide as climate regulations and expectations become global. This includes expanding their presence and services in places like Europe, where regulations are becoming quite strict. They've also made strategic moves, like acquiring companies that specialize in carbon data, to bolster their capabilities. The goal is to be a go-to partner for any business, no matter where they operate, that needs help managing its climate impact and meeting disclosure requirements. It shows they're thinking long-term about the global shift towards a more sustainable economy.

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 supporting companies that are trying to make a real difference in the environmental space. Their investment signals a strong belief in Watershed's approach to helping businesses tackle their carbon footprint. It's not just about money for them; it's about backing solutions that can actually move the needle on climate change.

Galvanize Climate Solutions' Role

Galvanize Climate Solutions is another big player in the climate investment scene. They tend to look for companies that have a clear path to reducing emissions and can scale their impact. Watershed fits that bill perfectly. Galvanize's involvement shows they see the growing need for tools that make carbon accounting and reporting straightforward for businesses. They're helping to push the idea that climate action is good business.

Emerson Collective's Contribution

Emerson Collective brings a unique perspective to the table. While they invest in a range of areas, their commitment to social and environmental progress is clear. Their support for Watershed highlights the intersection of business innovation and climate responsibility. It's about building a more sustainable future, and Emerson Collective seems to think Watershed is a key part of that puzzle. They're backing a company that's trying to make climate accountability a standard practice for corporations.

The Evolving Landscape of Climate Disclosure

EU's Corporate Sustainable Reporting Directive

The European Union has really upped the ante with its Corporate Sustainable Reporting Directive (CSRD). It's not just for EU companies anymore. If you're a U.S. company with operations or listings in the EU, you'll likely need to get on board. This directive demands detailed reports on sustainability efforts and impacts. Think of it as a much more thorough look at a company's environmental and social footprint than what we've seen before. It's a big shift, requiring companies to be much more open about their practices.

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. The proposal aims to make companies report on climate-related risks. This includes things like greenhouse gas emissions (Scope 1, 2, and 3) and how they're managing those risks. It's still a proposal, but the direction is clear: more transparency is coming. The SEC's move signals a significant federal push towards standardized climate reporting for publicly traded companies.

State-Level Climate Legislation

It's not just federal or international bodies. States are getting in on the action too. California, for example, has passed its own climate disclosure bills. These state-level rules can sometimes move faster or have different requirements than federal ones. This creates a patchwork of regulations that companies have to keep track of. It means businesses need to be aware of not just the big, overarching rules but also the specific requirements in the places they operate.

The pressure for companies to be open about their climate impact is growing from all sides. It's moving from a 'nice-to-have' to a 'must-do' situation very quickly. This isn't just about public image anymore; it's about compliance and future business strategy.

Watershed's Strategic Expansion and Acquisitions

Accelerating Product Development

Watershed isn't just sitting on its new cash; it's putting it to work. A big chunk of that $100 million Series C is earmarked for making its platform even better. Think faster updates, new features that tackle emerging climate reporting needs, and generally just a slicker, more powerful tool for companies trying to get a handle on their environmental impact. They're really focused on making it easier for businesses to not only measure their emissions but also figure out how to cut them down. It’s about building out the next generation of climate action software.

Acquisition of VitalMetrics

To really beef up its data capabilities, Watershed went out and bought VitalMetrics. This wasn't just a small pickup; VitalMetrics is 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 means their clients get access to more accurate, detailed information, which is super important when you're trying to report on your carbon footprint or set reduction targets. It’s like adding a whole new wing to their data library.

Launch of Watershed Disclosures

Last year, Watershed also rolled out a new product called Watershed Disclosures. This software is specifically designed to help companies with the often-complicated process of sustainability reporting. It’s built to make it simpler to get your reports ready for auditors and to meet all those new regulatory requirements we're seeing pop up. Plus, it ties into their Marketplace, allowing companies to directly fund things like clean power projects and sustainable aviation fuel. It’s a pretty neat way to connect the dots between reporting and taking real action.

The push for companies to be more transparent about their environmental impact is only getting stronger. With new rules coming into play and public expectations rising, having solid tools to measure, report, and reduce emissions is becoming less of a 'nice-to-have' and more of a 'must-have'. Watershed's moves here show they're serious about being the go-to platform for this.

Here's a quick look at what Watershed is focusing on:

• Data Accuracy: Improving the quality and depth of emissions data available.
• Reporting Tools: Making it easier to comply with new and existing disclosure mandates.
• Actionable Insights: Helping companies move beyond measurement to actual emission reductions.
• Marketplace Integration: Connecting reporting efforts with tangible climate investments.

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 really shows something. It's not just about the money, though that's obviously a big deal. It's about how much companies are starting to care about their environmental impact, and how fast that's happening. With new rules coming out and more people paying attention, tools like Watershed's are becoming less of a 'nice-to-have' and more of a 'gotta-have'. This funding means they can keep building out their platform, help more businesses get a handle on their carbon footprint, and basically, make climate action a bigger part of how business gets done. It feels like we're at a turning point, and Watershed is right there in the middle of it.

Frequently Asked Questions

What does Watershed do?

Watershed is a technology company that helps other businesses track, measure, and lower their greenhouse gas emissions. Their software makes it easier for companies to see where their pollution comes from and find ways to reduce it.

How much money did Watershed raise in its Series C funding?

Watershed raised $100 million in its Series C funding round. This big investment now values the company at around $1.8 billion.

Who were the main investors in Watershed's Series C round?

The main investors were Kleiner Perkins, Sequoia Capital, Greenoaks Capital, Prelude Ventures, Galvanize Climate Solutions, and Emerson Collective. These investors are known for supporting climate tech companies.

Why is carbon reporting important for businesses today?

Carbon reporting is important because more governments are making rules that require companies to share their carbon emissions. This helps people see which companies are working to protect the environment and which ones are not.

How will Watershed use the new funding?

Watershed plans to use the new money to build new features for its software, hire more team members, and help more companies around the world manage their climate impact.

What are some rules and laws about climate reporting that affect companies?

There are new laws in places like California and the European Union that make it mandatory for companies to report their carbon emissions. The U.S. Securities and Exchange Commission (SEC) is also planning new rules that will require companies to share more information about their climate risks.