Scope3, a startup that helps companies measure the carbon emissions generated by their advertising campaigns, this week said it raised $20 million in Series A investment, funds it plans to grow its team and expand into markets in Europe and APAC.
Cofounded in 2022 by adtech veteran Brian O’Kelley, Mike Freyberger, and Anne Coghlan who both worked with him at his former company AppNexus, Scope3 states that its mission is to “decarbonize advertising.”
Scope3’s platform models the digital advertising supply chain, from the energy use on consumers’ mobile and desktop devices, to the network equipment and servers required every time a website or app makes an ad request. By Scope3’s count, the digital advertising industry is responsible for 7.2 million metric tons of carbon emissions each year, or the equivalent of powering 1.4 million US homes.
Scope3 works with advertisers, agencies, adtech vendors, and publishers — which have included Insider — to help them measure their carbon impact and figure out where they can make efficiencies.
Scope3 also regularly publishes research and allows anyone to access basic information about the emissions producted by advertising, publishing, and tech platforms on its website.
The funding round, which values the company at $100 million and brings Scope3’s total funding to $40 million, was led by Alphabet-backed GV. It included participation from Room40 Ventures and Venrock.
O’Kelley said the round came together quicker than expected “in one of the worst fundraising environments of all time.” He added that GV was a perfect fit given the access it offers to Alphabet’s sustainability teams and a deep understanding of the adtech market.
Scope3 intends to use the fresh funds to hire, especially in geographies where the company has seen inbound demand such as France, Germany, and Japan. It also wants to bolster its teams in areas such as engineering and policy and bring on board more advertising experts as part of an ambition to be able to map a company’s entire media plan, including areas like TV and outdoor ads.
Coghlan said a big near-term ambition is that Scope3’s work to decarbonize the advertising industry will become a “beacon for other industries” to do the same.
Check out the key slides from the pitch deck that helped Scope3 raise its $20 million Series B round.
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