For a change, the carbon management software (CMS) industry had a relatively slow quarter. Startups raised a total of USD 182 million in funding during Q1, broadly flat from the previous quarter. QoQ growth rates also slowed, ranging from only 3% to 23% across various growth indicators and startup matrices. Nonetheless, startups continued to make progress through key customer and service collaborations, while recently proposed SEC regulations on climate-related disclosures for public companies are likely to work out well for the industry in the medium term.

Eight companies raised a total of USD 182 million in disclosed funding during Q1 2022. This was the third highest-funded quarter for the industry since the record-setting USD 208 million raised in Q1 2020 (included a massive USD 200 million private equity raise from EcoVadis). Funding remained broadly flat from USD 183 million raised in Q4 2021 but was still 9x higher compared to Q1 2021.