Wework co-founder Adam Neumann is behind a new cryptocurrency project called Flowcarbon and on Tuesday, the blockchain project revealed that it had raised $ 70 million from a handful of investors and was led by Andreessen Horowitz (A16z). Flowcarbon chief executive Dana Gibber says the project’s efforts provide a “brilliant financial mechanism that creates a counterbalanced incentive to reforest, revitalize and protect nature.”
Adam Neumann Supported Cryptographic Project Flowcarbon Earns $ 70 Million
A project backed by Adam Neumann, the co-founder and former Wework executive, has raised $ 70 million from strategic investors, according to an announcement released Tuesday. Neumann is controversial due to his role in the company in 2019 when it was discovered that the company could not make a profit. In September 2019, Wework filed an S-1 file for an initial public offering (IPO) stock launch and Neumann resigned from his CEO. Fluorocarbon is a project Neumann co-founded with his wife Rebekah, Dana Gibber, Ilan Stern, and Carolina Klatt.
Flowcarbon is working to fix the global climate crisis and calls itself “a pioneering climate technology company working to build market infrastructure in the voluntary carbon market (VCM).” It aims to symbolize the carbon credit industry and the company raised $ 70 million in venture capital and from the private sale of its carbon-backed token. The company’s announcement notes that the financing of Flowcarbon was led by the subsidiary of Andreessen Horowitz A16z crypto unit.
The financial round also saw the participation of Invesco Private Capital, General Catalyst, Samsung Next, Sam and Ashley Levinson, RSE Ventures, Kevin Turen, and Allegory Labs. The token sale saw investments from Box Group, Target Foundation and Fifth Wall. The company implements carbon credits in the Target blockchain and converts them into tokens called goddess-natural token (GNT). The aim is to make the carbon credit voluntary but also “more transparent, liquid and accessible”, according to the website’s summary.
On Tuesday, the Flowcarbon announcement notes:
Flowcarbon’s mission is to drive billions of dollars directly to projects that reduce or remove carbon from the atmosphere by creating the first open protocol to tokenize live, certified carbon credits from projects around the globe.
A16z General Partner Says Flowcarbon “Is a New Economic Inertia for Sustainability”
Flowcarbon CEO Dana Gibber explained that there are “powerful economic incentives to destroy and degrade critical natural landscapes around the world.” However, a VCM like Flowcarbon’s could counterbalance those incentives, according to Gibber. In addition to Flowcarbon’s financial announcement, Andreessen Horowitz’s Arianna Simpson (A16z) published blog post about A16z investing in Flowcarbon. Simpson said the Flowcarbon project unlocks “a new economic inertia for sustainability.” Andreessen Horowitz, a general partner who invests in crypto, further noted:
Buyers can purchase ERC20 tokens backed by a package of certified carbon credits issued in the last five years from projects that protect and restore nature.
Flowcarbon’s financial round, led by A16z and the handful of other investors, raised a total of $ 32 million. The rest of the $ 70 million raised came from the sale of a natural token (GNT) goddess. The Flowcarbon website says GNT is 1: 1 supported because “every GNT token is backed by a 1 carbon credit reduction or reduction project.” Each carbon credit retains “real-world value” and the company claims that they are “certified by the major issuers of carbon credit”.
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