Flowcarbon, a climate tech startup co-founded by former WeWork CEO Adam Neumann, is refunding investor funds following delays in launching its “Goddess Nature Token.”
Climate tech startup Flowcarbon, co-founded by former WeWork CEO Adam Neumann, is refunding investor funds after delays in launching its “Goddess Nature Token.”
The token was supposed to be backed 1:1 by carbon credits, which companies use to offset their greenhouse gas emissions. The startup, which announced a $70 million funding round in May 2022 with Andreessen Horowitz and Samsung Next among its notable backers, had raised at least $38 million through token sales.
Flowcarbon couldn’t launch the token for over two years after its launch. The company, which was trying to make the carbon credit market more accessible by tokenizing the credits, encountered difficulties in doing so. The carbon credits were supposed to launch in early 2022, but the carbon registries and the state of the market posed challenges.
Flowcarbon Issues Investor Refunds as It Faces Challenges Tokenizing Carbon Credits
Now, Flowcarbon has refunded investors who bought the Goddess Nature Token in a presale. The company cited the unfavorable market conditions and the carbon registries’ hesitance to approve transactions as challenges. The refunds were made with certain conditions, including the customers agreeing not to make any further claims on the funds and signing nondisclosure agreements.
While the company hasn’t disclosed these refund actions on its official social media platforms, Flowcarbon told Forbes that it was accepting to give refunds to retail buyers as the industry saw a slowdown.
The startup’s intention was to tokenize carbon credits to solve some of the inefficiencies of the carbon market, as most credits are usually retired upon being purchased. However, the issues around the value of carbon credits and some regulatory problems make the project a difficult endeavor. Still, Flowcarbon’s effort is not the only instance of blockchain being used in the context of ESG initiatives, despite some setbacks.
Flowcarbon was incubated by Neumann’s family office and has gained attention due to its investors and vision. The company continues its operations despite the challenges of running a business in the evolving carbon market.
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