Carbon removal platform Deep Sky fetches C$75m in Series A round

The round included C$57.5 million in new capital led by Brightspark Ventures and Whitecap Venture Partners.

  • Other investors in the round included Investissement Québec, OMERS Ventures and the Business Development Bank of Canada’s Climate Tech Fund
  • Hooper founders Frederic Lalonde and Joost Ouwerkerk teamed up with former Airbnb CFO Laurence Tosi to launch Deep Sky last year
  • The company’s CEO is Damien Steel, the former head of OMERS Ventures

Deep Sky, a carbon removal project developer based in Montreal, has raised C$75 million in a Series A financing.

The round includes conversion of the company’s C$17.7 million seed note and C$57.5 million in new capital co-led by Brightspark Ventures and Whitecap Venture Partners. Investissement Québec, OMERS Ventures and the Business Development Bank of Canada’s Climate Tech Fund also invested.

Deep Sky is building the first gigaton-scale carbon removal company, aiming to remove billions of tons of carbon from the atmosphere and permanently store it underground.

Hooper founders Frederic Lalonde and Joost Ouwerkerk teamed up with former Airbnb CFO Laurence Tosi to launch Deep Sky last year. The company’s CEO is Damien Steel, the former head of OMERS Ventures.

The round’s proceeds will be used to begin planning and construction of Deep Sky’s first commercial facility, grow the team, build corresponding carbon removal software for selling carbon credits, and fund its Alpha research facility.

“Never before have I seen an industry in its infancy with so many tailwinds, capital infusions and Fortune 500 and government buy-in,” Steel said in a statement. “Our capital raise is about advancing the multi-trillion-dollar carbon removal industry and providing a platform everyone can benefit from. We’re committed to making Canada the carbon removal capital of the world and offering the highest quality carbon emission offsets.”

Alongside the round, Deep Sky announced adding two independent board members, Annesley Wallace and Sam Duboc. Wallace is a former executive vice president and global head of infrastructure at OMERS, while Duboc is a co-founder and ex-CEO of Canadian private equity firm EdgeStone Capital Partners.