The Carbon Management Software (CMS) industry continued its momentum through Q3 2022, following the industry’s highest funded quarter in Q2. Startups raised a total of USD 617 million in Q3, the second highest raised in a single quarter, led by Xpansiv’s USD 400 million private equity round. QoQ growth levels continued to increase, ranging from 2% to 36% across various growth indicators and startup matrices (compared with 2%–18% in Q2). 

Funding

Eleven companies raised a total of USD 617 million in disclosed funding in Q3. This was the second highest funded quarter for the industry, following last quarter’s USD 680 million. Funding for the first nine months of 2022 (USD 1.5 billion) was already 3.6x higher than the total funds raised last year (USD 406 million).