By Ollie Potter | Last updated: April 2026 | 9 min read

Agricultural soils can remove 2-5 gigatons of CO₂ per year, more carbon than all the world's forests combined. Over the past centuries, 50% of carbon in Earth's soils has been released to the atmosphere through industrial farming. The startups reversing this trend aren't just planting trees or changing tillage practices. They're engineering microbes, crushing volcanic rock, and using satellites to measure carbon at the molecular level.

The sector raised $3.6 billion between 2021 and 2025, but deal activity dropped 21% in 2025 as the voluntary carbon market stagnated. Nori, once a blockchain carbon credit pioneer, folded after raising $17M. Meanwhile, Agreena doubled its footprint to 4.5 million hectares and Varaha became profitable while competitors burned cash.

Loam Bio is the company to watch. While competitors pay farmers to change practices, Loam engineered the biology itself. Their fungal inoculants create underground networks that lock carbon in mineral-associated organic carbon (MAOC), the most stable form. Western Sydney University research showed soils treated with Loam's technology stored up to 20.9% more resistant carbon compared to untreated soils. At $99.7M raised, they're Australia's most-funded agritech startup and the only one commercializing proprietary microbes specifically for carbon sequestration at scale.

Australia's most-funded agritech opened a factory while competitors folded.

Founded: 2019 | HQ: Orange, Australia | Funding: $99.7M

Loam Bio doesn't pay farmers to till less or plant cover crops. They engineered arbuscular mycorrhizal fungi that farmers apply to wheat, barley, and canola seeds at sowing. These fungi create underground networks that pull carbon from the air and lock it in soil as mineral-associated organic carbon (MAOC), which resists breakdown for centuries.

The company raised $73M in their Series B in February 2023, bringing total funding to just under $100M from Grok Ventures, GrainCorp Ventures, and Lowercarbon Capital. That makes them Australia's most-funded agritech startup to date. Western Sydney University research showed soils treated with Loam's CarbonBuilder™ technology lost significantly less carbon and stored up to 20.9% more resistant carbon compared to untreated soils.

Loam launched their FurrowMate® delivery system for applying CarbonBuilder™ directly into furrows. They operate the SecondCrop™ grower program engaging farmers across Australia. While practice-based carbon programs struggle with additionality questions, Loam's microbial approach creates carbon removal that wouldn't happen naturally. Co-founded by Tegan Nock and Guy Hudson, the company is now scaling production to meet demand from farmers who want carbon revenue without changing their entire operation.

Scaled from 2 million to 4.5 million hectares in 18 months while Nori shut down.

Founded: 2018 | HQ: Copenhagen, Denmark | Funding: $77.7M

Agreena built Europe's largest soil carbon program by being first to crack Verra certification. Their AgreenaCarbon platform combines satellite imagery, AI, and ground truth data to verify carbon sequestration from cover cropping, reduced tillage, and rotational grazing across 4.5 million hectares in 17 European countries.

The company raised €46M ($50M) in their Series B in March 2023 led by HV Capital, after a €20M Series A in 2022. They scaled from 2 million hectares in November 2023 to 4.5 million hectares by 2025, a 125% increase in 18 months. That growth came while US competitor Nori folded despite being on track to remove 700,000 tons of CO₂.

Agreena's competitive advantage is their Verra Verified Carbon Standard registration, the first for agricultural croplands at scale. Corporate buyers trust Verra certification, giving Agreena access to premium pricing that blockchain-based competitors couldn't match. The company also offers AgreenaGro, a farm resilience platform that provides financial services infrastructure for regenerative transition.

CEO Simon Haldrup and COO Julie Koch Fahler grew the team from 20 to 200 employees in two years while maintaining profitability focus. Agreena partnered with Radisson Hotel Group and other major corporates seeking high-integrity agricultural carbon credits. The company's "fintech for farmers" model provides both carbon revenue and the financial tools farmers need to make the transition stick.

Won the Earthshot Prize while making carbon programs accessible to 170,000+ smallholder farmers.

Founded: 2016 | HQ: San Jose, USA | Funding: $40M equity + grants

Boomitra uses satellites and AI to measure soil carbon without expensive physical sampling. They claim to reduce MRV costs by 90%+ versus traditional methods. That cost advantage makes carbon programs viable for smallholder farmers in the Global South who've been locked out of voluntary carbon markets.

The company raised $4M in their Series A led by Yara Growth Ventures, plus $500,000 from Global Innovation Fund in September 2024. Investors include Chevron Technology Ventures, Yahoo co-founder Jerry Yang, and Tom Steyer. Boomitra also secured $35M in project financing to scale operations across 5+ million acres in 9 countries.

Boomitra registered South America's first grassland restoration project covering 76,355 acres across Argentina and Paraguay, with 100,000+ tonnes CO₂ already sequestered. They also registered India's first biochar project under the Social Carbon standard. The company works with 170,000 to 175,000 farmers globally and has removed 10 million tonnes of CO₂ to date.

CEO Aadith Moorthy was recognized by TIME for prioritizing communities in the Global South most affected by climate change. The company name means "Friend of the Earth" in Sanskrit. Boomitra won the 2023 Earthshot Prize and was named among TIME's 100 Most Influential Companies. While developed-market competitors chase enterprise customers, Boomitra is proving that satellite-based MRV can unlock carbon finance for the farmers who need it most.

Became profitable while competitors burned cash, now removing 2M+ tonnes annually.

Founded: 2022 | HQ: Gurugram, India | Funding: $34.9M

Varaha doesn't bet on one carbon removal pathway. They develop projects across regenerative agriculture, agroforestry, biochar, and enhanced rock weathering. They sell verified credits through Puro.earth, Isometric, Verra, Gold Standard, and Carbon Standards International.

The company raised $20M in their Series B first tranche in February 2026 led by WestBridge Capital, with a full round target of $45M. They previously raised $8.7M in Series A led by RTP Global. Varaha hit ₹430M ($4.76M) in revenue in FY2024 and projects ₹1B ($11M) in FY2025 while remaining profitable after tax.

Varaha was first in India to issue biochar credits and first in Asia to issue enhanced rock weathering credits. They signed a 100,000+ tonne carbon removal agreement with Microsoft for their biochar project. They have long-term offtake agreements with Google, Lufthansa, Swiss Re, and Capgemini. The company operates across India, Nepal, Bangladesh, Bhutan, and Ivory Coast covering 1.7 million acres with 170,000 to 175,000 farmers.

Co-founded by Madhur Jain, Ankita Garg, and Vishal Kuchanur, Varaha claims a 1.5-3X cost advantage over European and North American competitors while meeting the same international verification standards. They launched the Varaha Industrial Partners Program (VIPP) enabling biomass processors to generate carbon credits from biochar production. While Nori folded citing market conditions, Varaha proved that profitability and impact aren't mutually exclusive in carbon removal.

Raised $1.4B, then pivoted from grain marketplace to biologicals and carbon.

Founded: 2013 | HQ: Boston, USA | Funding: $1.4B

Indigo Ag is climate tech's most-funded agtech startup, raising $1.4B across multiple rounds including a $360M Series F at a $3.5B valuation in June 2020. Founded by Flagship Pioneering (which also founded Moderna), Indigo started as a grain marketplace before pivoting to focus on microbial seed treatments and carbon markets.

The company offers around 25 biological products across five major crops that optimize plant growth, protect against stress, and improve yields. Their carbon program connects farmers to soil carbon markets through regenerative practices. Farmers have earned tens of millions through the platform since 2018. Indigo claims to have reduced or removed 2+ million metric tons of CO₂.

Indigo raised $1.5M from Google in April 2025 and operates what they call a market-leading soil carbon data platform. Investors include Riverstone Holdings, Baillie Gifford, Investment Corporation of Dubai, and Alaska Permanent Fund. The company's integrated approach combines biologicals, carbon credits, and supply chain traceability for brands seeking sustainable sourcing.

CEO David Perry previously co-founded Better Therapeutics, showing his pattern of applying technology to transform traditional industries. While the grain marketplace pivot raised questions about focus, Indigo's biologicals business and carbon platform represent a more defensible long-term model. The company competes with Loam Bio on microbial technology and Agreena on carbon programs, but its $1.4B war chest gives it staying power competitors lack.

Europe's first certified carbon payment programme now measures 30+ indicators beyond just carbon.

Founded: 2019 | HQ: Kraainem, Belgium | Funding: $21.9M

Soil Capital launched Europe's first certified carbon payment programme in 2019, three years before Agreena achieved Verra certification. But the company's real differentiation is measuring 30+ indicators across soil health, biodiversity, water management, climate, and socio-economics in their "Beyond Carbon" approach.

The company raised €15M ($16.4M) in their Series B in September 2024 led by Trill Impact Ventures, after a €3.5M Series A in March 2023. They also secured a €7M grant from the European Union in January 2023. Soil Capital engages 1,800+ farmers across 500,000 hectares in France, Belgium, and the UK. They have paid out €16M+ to farmers across four payment rounds.

Soil Capital became B Corp certified in 2022 and is a founding member of the Climate Agriculture Alliance. The company's affiliated business, Soil Capital Farming, provides farm management and strategic advisory services across 200,000+ hectares in 15 countries. That gives them 10+ years of regenerative agriculture expertise that pure-play carbon startups lack.

Founded by three farming and finance professionals, Soil Capital competes with Agreena in the European market but differentiates through holistic farm performance measurement versus carbon-only focus. While Agreena scaled faster, Soil Capital's "Beyond Carbon" approach may prove more resilient as buyers demand proof of co-benefits like biodiversity and water quality alongside carbon removal.

First to certify enhanced rock weathering credits, focusing on tropics where removal rates are 3-5X faster.

Founded: 2022 | HQ: Munich, Germany | Funding: $6.1M

InPlanet crushes basalt rock into fine powder and spreads it on tropical farmlands in Brazil, where warm temperatures and high rainfall accelerate natural weathering processes. The silicate rock reacts with CO₂ to form stable carbonates that lock carbon away for 1,000+ years while improving soil pH and crop yields.

The company raised €4.3M ($4.7M) in their seed round in October 2023 led by FoodLabs and Salvia, after a €1.3M pre-seed in January 2023. InPlanet was named Fast Company's #10 Most Innovative Company in Latin America 2025. They became the first company globally to independently certify enhanced rock weathering carbon credits.

InPlanet partnered with Stripe, Shopify, and other major buyers seeking permanent carbon removal. The company's focus on tropical agriculture is strategic: weathering rates in Brazil are 3-5X faster than temperate regions, making each ton of basalt more cost-effective. InPlanet also partnered with Isometric for carbon credit verification, addressing credibility concerns in voluntary carbon markets.

Co-founded by Felix Harteneck and Niklas Kluger, who met at a college party in Munich, InPlanet competes with Terradot and Eion in enhanced rock weathering but differentiates through tropical focus and first-mover advantage in certification. The company operates as remote-first with team members globally. While biochar offers similar permanence, InPlanet's approach also reduces farmers' need for chemical fertilizers by improving soil pH naturally.

16-year-old founder raised $3.5M to build biochar kilns producing 5X more than current technology.

Founded: 2024 | HQ: Los Altos, USA | Funding: $3.5M

CarbonZero.Eco was founded by Harper Moss when she was 15 years old. Now 16, she's raised $3.5M from managers and executives at Google, Meta, and Amazon to build proprietary biochar kilns that convert agricultural waste into stable carbon.

The company's kilns can produce 30,000 tons of biochar per year, 5X more than current technology. CarbonZero signed $7M in deals with 300+ almond farms in Colusa and Yolo Counties, California, converting almond shells and cotton stalks into biochar that stabilizes carbon for up to 1,000 years. The company expects to mitigate 1.5 million tons of CO₂ emissions from waste breakdown.

CarbonZero registered as a biochar carbon removal certificate supplier with Puro.earth, with first certificates expected mid-2025. Their first production plant in Williams, California launched in April 2025. The company is tackling the impending biochar shortage in the US, where 525 million acres of farmland could benefit from biochar, requiring 2.6+ billion tons annually.

Harper Moss and CTO Gregory Ray are addressing both agricultural waste (1,300 million tons/year globally) and carbon removal at scale. CarbonZero competes with established biochar producers like Carbo Culture and Charm Industrial but differentiates through proprietary high-capacity kilns and focus on agricultural waste partnerships. The company represents a new generation of climate tech founders who grew up with climate crisis as baseline reality, not future threat.

The voluntary carbon market is separating winners from losers. Nori raised $17M and was on track to remove 700,000 tons of CO₂ in 2024, then shut down in September citing stagnant market conditions. Meanwhile, Agreena doubled its footprint and Varaha became profitable. The difference? Verra certification, corporate offtake agreements, and cost discipline.

The smart money is moving to permanent removal. Enhanced rock weathering and biochar lock carbon away for 1,000+ years versus 100 years for many forestry projects. InPlanet certified the first ERW credits while CarbonZero.Eco is scaling biochar production 5X beyond current technology. Direct air capture attracts 61% of carbon removal funding despite higher costs. But soil-based approaches offer co-benefits like improved yields and soil health that DACCS can't match.

The sector's challenge isn't technology. It's building credible MRV systems that corporate buyers trust and navigating the "missing middle" of $1-5M investors needed to scale from pilot to commercial production.

What is soil carbon sequestration and how does it work?

Soil carbon sequestration is the process of capturing atmospheric CO₂ through photosynthesis and storing it in soil as organic matter. Plants pull carbon from the air. When they die or shed roots, that carbon enters the soil where it can remain for decades to millennia depending on soil type and management practices.

Which soil carbon sequestration startup has raised the most funding?

Indigo Ag has raised $1.4B, making it the most-funded agtech startup globally. However, Loam Bio at $99.7M is the most-funded pure-play soil carbon startup, while Agreena at $77.7M leads in Europe.

How do soil carbon credits work for farmers?

Farmers adopt regenerative practices like cover cropping, reduced tillage, or applying biochar. Third-party verifiers measure carbon sequestration using soil sampling, satellite data, or both. Verified carbon removal generates credits that farmers sell to corporations seeking to offset emissions, typically earning $15-30 per ton of CO₂.

What's the difference between soil carbon sequestration and enhanced rock weathering?

Soil carbon sequestration stores carbon in organic matter through plant growth and decomposition. Enhanced rock weathering spreads crushed silicate rock on fields where it reacts with CO₂ to form stable mineral carbonates. ERW offers longer permanence (1,000+ years vs. decades) but requires mining and crushing rock.

Why did Nori shut down while other soil carbon startups are growing?

Nori relied on blockchain-based carbon credits in a voluntary market that stagnated in 2024. Successful competitors like Agreena and Varaha secured Verra or Puro.earth certification, signed corporate offtake agreements, and maintained cost discipline. Nori's $17M in funding couldn't outlast the market downturn.

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