In a clear signal of investor confidence in nature-based climate solutions, Brazilian reforestation specialist Mombak announced today that it has secured $30 million in a Series A financing led by Union Square Ventures (USV). This landmark funding round, which includes participation from returning backers Kaszek and Bain Capital as well as newcomers Lower carbon Capital and Copa Investimentos, comes at a time when Brazil’s carbon removal sector is experiencing surging interest from global corporations and venture capitalists alike.

From field to forest: how Mombak turns degraded land into carbon sinks

Launched in early 2021 by a team of agronomists and climate entrepreneurs, Mombak bridges high-tech precision analytics with on-the-ground restoration. The company’s core process begins with satellite and drone imagery, processed through proprietary artificial-intelligence models, to pinpoint tracts of pasture or farmland that have suffered decades of soil depletion and erosion. Once identified, these parcels are enrolled in long-term restoration programs that interweave hundreds of native Amazonian tree species—ranging from the hardwood jatobá and aromatic cumaru to the versatile andiroba—into regenerative agroforestry systems.

By maintaining a mosaic of trees alongside fruit crops and medicinal plants, Mombak not only optimizes carbon uptake but also reintroduces biodiversity corridors for wildlife and preserves local knowledge of forest stewardship. From seed collection in protected reserves to nursery operations staffed by regional cooperatives, every stage is designed to maximize survival rates and ecological benefits. Since inception, the startup has planted more than five million trees across roughly 45,000 acres—an area nearly three times the size of Manhattan—and is on track to hit eight million by June 2025.

The new investor wave: why VCs are flocking to carbon removal in Brazil

The $30 million injected by USV and its co-investors pushes Mombak’s total fundraising to about $200 million in just four years. Venture firms cite three main drivers behind their enthusiasm:

1. Corporate net-zero commitments: With more than 70 percent of the world’s 2,000 largest public companies pledging net-zero emissions by mid-century, demand for high-integrity carbon removal credits is soaring. Simple reduction projects—like switching to renewable energy—only go so far. Corporations increasingly seek verified removal of legacy emissions, making forest restoration an attractive option both financially and reputationally.
   
2. Favorable macro trends: Brazil’s voluntary carbon-credit market has matured rapidly. In 2024 alone, trade volume topped two billion dollars, and analysts project compound annual growth north of 25 percent over the next decade. Beyond voluntary markets, Brazil’s new administration under President Lula has driven deforestation downward, tightened environmental enforcement, and signaled support for a national carbon pricing framework—creating policy tailwinds for removal projects.
   
3. Tech-enabled scale: Unlike many tree-planting efforts that stall at pilot scale, Mombak’s AI and remote-sensing tools enable near-industrial rollouts. Automated seedling health monitoring, blockchain-backed credit tracking, and drone-assisted site inspections reduce overhead and bolster transparency—two perennial challenges in the forestry sector.
   

Going big: operational leap from startup to scale-up

Co-founder Gabriel Silva explains that the fresh funding will supercharge a multi-pronged expansion:

• Nursery network growth. Mombak plans to triple its seedling production capacity by building or partnering on five new nurseries in Pará and Amazonas states. Each site will incorporate solar-powered irrigation and IoT sensors to optimize watering and nutrient delivery.
  
• Workforce development. The startup will double its field teams from 200 to 400 agronomists and forest technicians, recruiting primarily from local communities. Trainees receive certification in silviculture best practices, ensuring long-term stewardship even after planting wraps up.
  
• Technology enhancements. An upgraded AI engine will analyze incoming satellite data daily, identifying new land-use change events and potential leak pathways—instances where deforestation simply shifts elsewhere rather than ceasing altogether. Additionally, Mombak is integrating blockchain-backed registries to assign each carbon credit a unique identifier tied to its GPS coordinates and planting date, boosting buyer confidence.
  
• Community partnerships. By leasing degraded smallholdings from farmers on multi-year contracts, Mombak injects upfront capital for planting and maintenance. In return, landowners earn a share of credit revenues over a decade. Early pilots show net income boosts of up to 30 percent in participating households, transforming local economies previously reliant on cattle pasture.
  

Brazil’s carbon removal market at a crossroads

While Mombak is among the highest-profile entrants, it joins a growing roster of Brazilian innovators. Biomas, founded by several blue-chip tech veterans, focuses on mangrove restoration along the northeast coast. Re.green, with backing from billionaire Joao Moreira Salles, has launched a 100,000-hectare pilot in Mato Grosso. These projects—alongside direct-air-capture pilots under consideration in São Paulo and research into biochar carbon sequestration—signal a broader diversification of nature-based and engineered solutions.

For context, voluntary carbon markets globally transacted nearly $4.5 billion in credits in 2024, with nature-based solutions accounting for over 70 percent of volume. Analysts believe removal credits—those that pull CO₂ out of the atmosphere rather than merely avoiding emissions—could represent up to one-third of total trades by 2030. If Brazil alone captures even a fraction of that market, revenue streams could exceed $20 billion annually, supporting tens of thousands of green-economy jobs in remote regions.

Navigating policy and permanence

Under the Lula administration, Amazon deforestation rates fell more than 30 percent year-on-year, hitting lows not seen since 2015. Enhanced enforcement by Brazil’s environmental protection agency and renewed funding for sustainable-use reserves have been critical. Simultaneously, Congress is debating a carbon pricing law that, if enacted, would mandate industrial emitters to purchase credits from certified removal projects—vastly expanding demand beyond voluntary corporate buyers.

However, permanence remains a key hurdle. Forests must remain intact for decades—even centuries—to qualify as true removal. Mombak mitigates risks through multi-layered insurance: satellite-monitored fire alerts, community rangers funded by a portion of credit sales, and escrowed funds to cover unexpected tree loss. Yet political shifts or lax enforcement could still expose projects to illegal logging or land-grabbing, underlining the importance of robust legal frameworks and continual oversight.

Social and ecological dividends

Beyond carbon accounting, Mombak’s model delivers tangible social benefits. In the riverine villages of southern Pará, former cattle ranchers are cultivating Brazil nuts and açai alongside newly planted saplings, creating diversified incomes that cushion against agricultural market swings. School programs teach forest ecology, rekindling ancestral ties to the land. Local water tables have rebounded, and soil organic matter—depleted under decades of grazing—is on track to recover, enhancing drought resilience.

Environmental economists estimate that every dollar invested in Amazon restoration yields up to three dollars in ecosystem services—from flood protection to pollination. As central-bank research suggests, these co-benefits could justify public incentives or blended-finance structures, pairing concessional funding with private capital to accelerate restoration while safeguarding vulnerable communities.

Challenges ahead and the path to maturity

Even as Mombak and its peers scale up, the carbon removal arena faces consolidation pressures. Larger agribusinesses and forestry multinationals may seek to acquire standout startups, integrating restoration services into broader decarbonization portfolios. Meanwhile, specialist ventures exploring soil carbon enhancement, biochar sequestration, and direct air capture will vie for investor attention, potentially fragmenting capital flows.

Validation and verification costs also loom large. Third-party auditors must vet planting records, survival rates, and long-term permanence—processes that can consume 10 to 20 percent of credit revenues. Industry groups are exploring standardized protocols to reduce these frictions, but widespread adoption remains a work in progress.

What comes next: a blueprint for global climate action

Mombak’s success offers a replicable model for other rainforest regions—from the Congo Basin to Southeast Asia—where degraded land beckons large-scale restoration. By marrying AI-driven site selection, biometric monitoring, and community co-management, the startup demonstrates that reforestation can yield both ecological integrity and scalable business value. For investors, the attraction lies not only in carbon revenues but in the array of co-benefits—biodiversity preservation, water security, and rural development—that underpin long-term viability.

As Brazil prepares to host the United Nations Climate Change Conference (COP30) in late 2026, the global spotlight will intensify on how Amazon restoration can drive net-zero pathways. Mandatory removals, cross-border offset recognition, and blended public-private finance could all emerge from the COP negotiations. Should these efforts materialize, they would cement nature-based climate solutions as a cornerstone of twenty-first-century decarbonization.

Conclusion: planting the seeds of an emerging industry

Mombak’s $30 million Series A is more than a financing milestone; it marks a turning point for nature-based carbon removal in Latin America. By proving that high-integrity reforestation can be both environmentally transformative and financially compelling, the startup is charting a course for hundreds of thousands of hectares of restored forest—and a multibillion-dollar industry—to follow. As climate urgency mounts and corporations race to neutralize their footprints, Brazil’s forests—and the entrepreneurs committed to their revival—may well become an indispensable ally in the global fight against climate change

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By: Montel Kamau

Serrari Financial Analyst

30th April, 2025