When Josh Silverman started exploring the idea for his methane-eating microbial startup Windfall Bio eight years ago, the market wasn't ready. No one cared about methane, he said. Companies focused instead on reducing their carbon footprint. But a few years later, the market is starting to pick up again.
Menlo Park-based Windfall Bio has raised $28 million in a Series A round to expand its commercialization efforts. The round was led by Prelude Ventures, with participation from Amazon's Climate Pledge Fund, Incite Ventures, Positive Ventures, and existing investors including Mayfield.
Windfall works with industries that produce large amounts of methane, including agriculture, oil and gas, and landfills. The startup supplies methane-eating microorganisms that absorb methane emissions and turn them into fertilizer. Companies involved in the agricultural sector can use fertilizers themselves or sell them as a source of income.
“We believe there is a significant opportunity to leverage this natural ecosystem to provide a low-cost solution without the large capital investments seen with other carbon capture technologies.” Silverman said.
It took a few years to really get investors and companies on board, but demand has been growing since Windfall raised a seed round last year and emerged from stealth in March 2023, Silverman said. Ta.
“We've had a huge influx from every continent and every industry. There's tremendous excitement,” Silverman said. “It's a win-win for everyone, regardless of industry. Everyone wants to reduce their carbon footprint, and they want to do it in a way that makes them profitable, but there aren't many solutions.”
Silberman said that for a long time, the sole focus was on carbon capture because once carbon is in the atmosphere, it remains forever, compared to methane's 10- to 12-year lifespan. Decades ago, when people thought about climate change, they were looking for more long-term solutions. But now, as the effects of climate change become more apparent and worsening, people are realizing the need for both short- and long-term solutions.
“We literally missed every climate change goal we set,” Silverman said. For example, not a single G20 country has put in place the policies needed to meet the Paris Agreement's emissions reduction targets. “If you only think about the future and neglect the day-to-day, you will miss your goals and miss what is right in front of you. We need to deal with short-term climate factors, otherwise , we will not be able to deal with long-term factors.”
The lack of attention to methane is also surprising. That's because methane can actually generate a better ROI for companies than carbon reduction efforts.
Carbon is waste. This means that when companies capture carbon, they are primarily doing so to remove carbon, rather than converting it into something. In comparison, methane is energy and can be captured and recycled much more easily than carbon. Essentially, companies can reduce carbon for potential future cost savings and ultra-legal carbon credits, but working with a company like Windfall allows them to focus on methane. You can actually profit from it.
The deal was also noteworthy to me because Windfall is part of a growing category of startups focused on mitigating today's climate issues, not just tomorrow's. While it's good for companies to focus on mitigating the long-term effects of climate change and preventing future climate events, we need solutions now.
I am reminded of Convective Capital, a venture fund specializing in wildfire technology that I wrote about previously. It specializes not in technologies that help prevent wildfires, but rather in technologies that help society adapt to the increasing impact of wildfires. Company founder Bill Clerico told TechCrunch in 2022 that while it's great to build long-term solutions, it's pointless if your home is at risk from wildfires this summer. .
Silverman said the market is still in the early stages of realizing the potential benefits of investing in methane reduction technologies. But progress is good, and although he may be biased, Silverman is happy to see money going to climate companies rather than carbon credit startups. I also agree with him.
“It's been a long road to get here, with zero traction for years,” Silverman said. “We have traction now and there aren't that many people working in this field, but we also don't have many competitors. We are the best of the few. As I said, 'My country of the blind' Then the one-eyed man is king.''