IncubEx closes most significant capital raise to date

Funding | International | South East | Technology

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IncubEx, Inc., a global product developer of exchange based environmental markets has announced it has successfully closed its most significant capital raise to date of $11.8m resulting in a post-money valuation of $161.8m with support from distinguished industry leaders.

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Prominent IncubEx investors include: Michael Spencer, Chairman of IPGL (Holdings) Limited, Lance Uggla, Chairman and CEO of IHS Markit, Carsten Kengeter of 7RIDGE and Circuitus Capital, Lansdowne Partners, and Orsted North America.

The capital raise further enables IncubEx to expand environmental market products and services in geography and scope in response to unprecedented public and private commitments towards sustainability.

Environmental commodities have the potential to develop into one of the largest traded asset classes and IncubEx has established a strong foundation of domain expertise, stakeholder relationships and market position to capitalise on this growth.

IncubEx partnered with European Energy Exchange (EEX) Group in 2017 and has helped develop EEX’s presence in European Union Allowance (EUA) secondary spot, futures and options.

EEX’s U.S. subsidiary Nodal Exchange and IncubEx launched 82 futures and options products in North American carbon, renewable energy certificates (RECs) and renewable fuels within 24 months. North American markets recently topped more than 135,000 contracts of open interest and Nodal posted record daily, monthly and quarterly volumes for environmental products in Q1 2021. Today, EEX and Nodal offer the broadest suite of listed environmental futures and options contracts in the world.

IncubEx, founded in 2016, has assembled a team with an unrivaled track record in exchange-listed environmental commodities, built market share in established environmental markets and introduced several “first-ever” listed exchange contracts.

IncubEx will expand the scope of existing North American and European markets and focus on the global development of unique products focused on climate risk, voluntary sustainability commitments, renewable energy markets and beyond.

Michael Spencer commented: “IncubEx is uniquely positioned to help exchanges and participants harness the markets to achieve their climate goals. With more companies and policy makers declaring net zero targets, markets participants will demand and rely upon tradeable products that are impeccably designed, efficient and accessible. IncubEx has already proven it has the experience and vision to provide such instruments and take this asset class to another level.”

Neil Eckert commented: “This round of investment by such experienced business leaders and innovators is the latest and strongest validation of the IncubEx mission and vision. We are at an inflection point for climate change action and thus, for global environmental markets as well. When we created Climate Exchange more than 16 years ago, we established a new asset class that has endured and grown. Yet, today’s environmental markets are still in their infancy, with emissions trading schemes covering just 5% of the world’s carbon footprint. The growth of environmental markets globally in the coming years may be unparalleled in financial history, and will require the products, expertise and technical abilities that are truly the core of IncubEx. We’re in the right position at the right time working on the most important markets of our time.”

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