Claims Carbon, a Stockholm-headquartered software business that helps insurance firms assess the carbon footprint of their value chains, has announced a €1.1 million seed raise led by Helsinki investment firm Vaens.
The company got started last year and has since delivered on its Claims Carbon software stack, which calculates climate impacts in the ecosystem of an insurance company to inform decisions on net zero targets, emissions reductions programmes and new net zero insurance products.
With the €1.1 million round, Claims Carbon is investing in its product pipeline aiming to bring a "stronger" offering to its current SaaS roster, as well as hiring more staff and entering new product offerings and geographies.
Haanu Vaajoensuu, an investor with Vaens, said: "The founders have demonstrated that they are dead serious about making a real impact in the race to net-zero.
"Their ability to rapidly close enterprise software deals demonstrates that this market opportunity is exciting.”
Addressing emissions produced by carbon-prone policy holders, like energy producers and construction firms, is one of the UN's environmental programme objectives. Major insurance companies increasingly offer limited coverage for the production of fossil fuels, for example.
In November, the UN said its affiliate Net Zero Insurance Alliance completed a public consultation on a new global accounting protocol that's expected to govern net zero targets at insurance firms. In the announcement, the UN says the first version of the protocol would align with the 1.5°C warming objective, while informing interim targets for insurers to work to based on findings from independent scientists. The NZIA protocol will launch officially in the new year.
Meanwhile, Claims Carbon has started off strongly. It has partnerships with northern Europe-based insurers and has operations which now extend into eight European markets, with the help of its new investors, in Sweden Finland, Norway, Poland, Belgium, Switzerland, France and Portugal.
Aside from Vaens, Claims Carbon's seed round is also backed by financial services VC BiG Start Ventures, insurtech investor Astorya.vc, real estate investment company Claesson & Anderzén, and business angels including Fredrik Bergström (ex-CEO of Swedish insurer Länsförsäkringa) and Patrik Backman (founder, MariaDB and OpenOcean)
Florian Gralliot, of Astorya.vc, said: "While insurers are leading the fight against climate change with the ‘net-zero initiative’, Claims Carbon is among few SaaS solutions enabling the industry to track carbon emissions starting with the claims handling process.
" We are excited to back the founders’ journey to scale across Europe after having already signed a handful of insurers in Northern Europe.”