The investment will be used to expand and accelerate its sustainable finance options to support the fight against climate change
HeavyFinance, a climate tech investment marketplace for the agricultural industry, has raised €3m in its seed funding round, led by venture capital firm Practica Capital.
The fintech provides financing and loan schemes for businesses in the sustainable agriculture and climate activity spheres, aiming to remove one gigaton of CO2 emissions by 2050.
The funding will help HeavyFinance expand in Europe. It currently operates in Poland, Portugal, Lithuania, Latvia and Bulgaria.
HeavyFinance will also use the funding to accelerate the switch from conventional farming to regenerative practices, to enrol 200,000 hectares of regenerative farmland as part of a carbon farming initiative, and create direct access for businesses looking to offset their carbon footprint.
Laimonas Noreika, founder of HeavyFinance, commented: “Tackling climate change must be a united effort, and with almost a third of global greenhouse emissions coming from agricultural products, HeavyFinance is here to lead the charge in the agricultural sector.
“Food growth plays a vital part in the climate battle as a prominent global issue, and connecting investors with farmers and agricultural specialists through our finance platform can help accelerate the adoption of regenerative soil management practices to reduce carbon emissions output throughout Europe.”
Arvydas Bložė, partner at Practica Capital, said: “HeavyFinance’s team is committed to transforming the traditional agricultural lending marketplace by incentivising farmers to adopt sustainable and regenerative farming practices by providing them access to the necessary capital.
“By connecting farmers in Europe directly and introducing a proprietary soil-based carbon credit methodology, we anticipate creating a new channel for downstream corporates to offset their carbon credits and stimulating institutional capital investments in the green sector.”