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Coatue makes its $73M emissions-tracking bet

Apr 5, 2022
Illustration of a car spewing exhaust in the shape of an upward trendline.

Illustration: Gabriella Turrisi/Axios

Coatue backed Sweep, an enterprise emissions-tracking software startup, to the tune of $73 million in Series B funding.

Why it matters: This is Coatue's first and only investment in the popular emissions-tracking software industry, a source tells Axios.

  • Coatue's potential customer network and deep pockets have the trappings of kingmaker among any industry.

Details: Coatue proactively sought out Sweep to lead the Series B, which comes just three months after Sweep closed a $22 million Series A funding round, Sweep CEO Rachel Delacour tells Axios.

Context: That's not uncommon for Coatue, which tends to comprehensively evaluate an industry prior to picking its horse, compared to other large investors that may bet on a company first and industry second.

  • Coatue had spoken with Sweep's Series A investors prior to extending the offer, Delacour says.
  • Coatue has been steadily inching forward from its position in private growth equity investments toward earlier stages.
  • It also invested in sustainable packaging startup Sourceful's $20 million Series A, Axios reported March 28.

How it works: Sweep sells enterprise software to large companies in Europe that need to track and report emissions to regulators, stakeholders or board members.

  • It plugs into historical company data to show the company's progress, and uses external data to help decision makers implement emissions-reducing action plans across departments.
  • It tends to work with older companies that have complex or siloed data infrastructure to bring all the information together in a single dashboard.
  • Think of it as similar to software data visualization tool Looker, but for carbon emissions.
  • It can track Scopes 1, 2 and 3 emissions. Sweep tells Axios it works with several companies that qualify as high-emitters, but its biggest competitors are internal spreadsheets.

The bottom line: Coatue is betting that carbon-emissions accounting will remain big business as regulators tip the scales in the industry's favor.

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