Company highlights
Why We Invested in Terradot
We are proud to welcome Terradot to our portfolio, celebrating its $58.2M funding round alongside John Doerr, Sheryl Sandberg & Tom Bernthal, George Roberts, Microsoft's Climate Innovation Fund, Google, Cisco Foundation, Kleiner Perkins, Floodgate, Acre Venture Partners, Gigascale Capital and others.
At Terradot, we see the intersection of ancient natural processes and modern innovation as a powerful force for addressing today’s most pressing environmental challenges. By harnessing the age-old process of rock weathering, Terradot is not just removing carbon from the atmosphere but also turning mining waste into a valuable resource and enhancing agricultural productivity. This multifaceted approach represents a promising solution in the fight against climate change.
Founded in 2022 within Stanford’s Soil and Environmental Biogeochemistry Lab, Terradot is pioneering gigaton-scale carbon dioxide removal (CDR) through Enhanced Rock Weathering (ERW). Their scientifically-backed platform is designed to measure, report, verify (MRV), and optimize carbon capture efforts, bringing rigor and precision to the process.
Nearly 300,000 tons of carbon removal were already sold by Terradot, including a $27M purchase by Stripe's Frontier Climate buyers for 90,000 tons and Frontier member Google’s largest-ever single CDR purchase—200,000 tons.
ERW, a leading CDR solution, accelerates natural rock weathering for efficient carbon capture
ERW is an innovative climate solution that speeds up a natural process where certain ground-up rocks absorb carbon dioxide (CO₂) from the atmosphere. Normally, this process takes thousands of years, but ERW makes it much faster and more efficient by spreading finely crushed rocks on land.
As the rocks interact with moisture and CO₂, a chemical reaction turns the CO₂ into stable bicarbonate, which eventually washes into rivers and oceans, where it can safely store carbon for thousands of years. In addition to reducing CO₂ levels, ERW improves soil health and boosts agricultural productivity, offering a win-win for the environment and farmers.
Through the application of finely ground rock powder on land, Terradot generates carbon removal credits while simultaneously benefiting both the environment and agriculture. This process transforms mining waste into a revenue stream for quarries and enhances soil quality for farmers, reducing the need for fertilizers.
Terradot is positioned to become a cost-effective, scalable solution for carbon capture, addressing the rapidly growing demand in the CDR market.
Terradot is solving a critical challenge, meeting a large unmet demand
The global push for carbon emissions reduction is fueling a surge in demand for innovative CDR technologies, essential for achieving net-zero targets. Investment in these technologies is critical to drive down costs and scale up projects. Estimates suggest that to meet global net-zero goals by 2050, cumulative investment in CDR will need to reach between $6 trillion and $16 trillion. However, current investment trajectories fall short, with a potential gap of $400 billion to $1.6 trillion by 2030 (Source: McKinsey).
The scale of the challenge is underscored by the commitments from major corporations like Amazon, Microsoft, and Google, all of which are investing heavily in sustainable technologies and carbon reduction strategies. The three are all investors and offtakers of Terradot.
For instance, Amazon’s $2 billion Climate Pledge Fund and Microsoft’s $1 billion Climate Innovation Fund are designed to accelerate the development of critical climate technologies. These efforts are complemented by initiatives like Frontier, a public-private partnership launched by Stripe, Alphabet, Meta, Shopify, and McKinsey, which has secured nearly $1 billion to purchase future carbon removal services.
Terradot boasts an exceptional team, including scientists from Stanford and experienced professionals in the climate tech space.
Terradot’s team is a key differentiator, combining top-tier scientific expertise with seasoned business acumen. Led by CEO and Co-Founder James Kanoff, a 2021 US Congressional Medal of Honor recipient, and supported by Chief Scientist Dr. Scott Fendorf, a Stanford expert in biogeochemical processes, the team is well-equipped to scale this technology. They are further strengthened by the experience of CPO and Co-Founder Sasankh Munukutla, a Stanford AI graduate, CFO Julia Sekula, who brings extensive climate-tech and finance experience from her time at Morgan Stanley, and CCO Connor Sendel, who brings a strong background in business development and operations from his time at Boston Consulting Group. The team’s vision is supported by influential board members like Sheryl Sandberg and John Doerr.
The team was able to build a technology that was validated in the US and now being deployed in Brazil, is both simple in concept and groundbreaking in its application and scalability. The proprietary model they’ve developed optimizes CDR and agronomic yield while minimizing costs, making it a highly efficient solution for carbon capture.
Brazil’s strategic advantages make it the ideal hub for Terradot’s technology deployment
Brazil, with its unique agricultural landscape, favorable climate, and robust infrastructure, is the ideal region for deploying Terradot’s technology. The country’s proximity of quarries to farms, combined with the natural conditions of the Cerrado region, creates a perfect environment for ERW. Moreover, Brazil’s historical support for agricultural innovation positions it as a strategic hub for scaling Terradot’s operations, enhancing the effectiveness and efficiency of carbon sequestration efforts.
As a cross-border fund with deep roots in Brazil, Valor Capital is proud to partner with Terradot on this transformative journey. Together, we are poised to unlock the vast potential of their groundbreaking solution, capturing a tremendous opportunity and serving an unmet demand in the global fight against climate change.
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