LONDON — Context Labs, a data provider that helps companies track carbon emissions, is looking to raise up to $150 million from investors, two people familiar with the matter said, amid growing demand from businesses to better assess their environmental footprint.
The company, based in Amsterdam, the Netherlands, and Cambridge, Massachusetts, is working with Barclays on a possible fundraise that could value the company at more than $1 billion, one of the people said.
Financial Post Top Stories
Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.
By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300
Spokespeople for Context Labs and Barclays declined to comment.
Advertisement 2
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Unlimited online access to articles from across Canada with one account
- Get exclusive access to the National Post ePaper, an electronic replica of the print edition that you can share, download and comment on
- Enjoy insights and behind-the-scenes analysis from our award-winning journalists
- Support local journalists and the next generation of journalists
- Daily puzzles including the New York Times Crossword
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Unlimited online access to articles from across Canada with one account
- Get exclusive access to the National Post ePaper, an electronic replica of the print edition that you can share, download and comment on
- Enjoy insights and behind-the-scenes analysis from our award-winning journalists
- Support local journalists and the next generation of journalists
- Daily puzzles including the New York Times Crossword
REGISTER TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Context Labs has attracted interest from private equity investors as well as large data and energy companies, the person said, adding that a deal could close over the coming months. The person, who requested anonymity because the matter is confidential, cautioned that discussions are ongoing but no deal is guaranteed.
Context Labs uses machine learning technology to help companies across natural gas, chemical and other industries measure their carbon emission footprint. It does so by curating and verifying data on production processes from the source, as opposed to relying on industry estimates.
The company recorded $25 million of average recurring revenue in 2022, which it expects to increase to more than $100 million this year as it takes on new customers, the source said. It expects to break even by the end of the year, this source said.
Advertisement 3
Proceeds from the fundraise will go towards hiring more staff, expanding into new industries and acquisitions if opportunities arise, one of the people said.
Context Labs raised $28 million in 2022, led by private equity fund BP Energy Partners. Existing investors are expected to reinvest in the business, the person said.
The company was founded in 2013 by chief executive and tech entrepreneur Dan Harple, who owns a majority stake and is a fellow at Massachusetts Institute of Technology’s Sloan School of Management. He was founder and CEO of Context Media, which was bought by Oracle in 2005. (Reporting by Amy-Jo Crowley; Editing by Susan Fenton)
