Sonic to support startups that use blockchain technology to provide solutions to environmental and social challenges, with a focus on the carbon credit markets
Former Bitcoin.com CEO Stefan Rust announced the launch of Sonic Capital, Asia’s first venture capital and impact investment fund to be tokenized on the blockchain.
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Sonic looks to invest in startups that leverage blockchain and tokens to provide commercial solutions to challenges related to the regeneration and conservation of the environment, as well as social equality. Sonic will particularly focus on investing in businesses that support the adoption and scale of the carbon credit markets. The fund has a global remit and will support companies at the Late Seed and Series A stages of investment.
According to the IIF (“Institute of International Finance”), the global carbon market is set to grow 160x in order to meet the commitments outlined in the Paris Agreement, further driven by an increasing focus of both countries and corporations to reduce their impacts to the environment. Voluntary carbon credits are recognized as a credible solution to alleviate environmental challenges because they go beyond regulatory obligations and contribute to the funding of carbon emission reduction projects from a variety of activities.
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In spite of this momentum, there will be a widening supply-demand gap due to the slow development of the global carbon market. Sonic Capital believes the application of blockchain and tokens can alleviate some of the limitations and inefficiencies of the existing processes and infrastructure to help drive the necessary growth. Decentralized governance can provide much-needed transparency and automate manual and timely processes, and as a result, bring down the current costs associated with credit issuance to enable greater participation while increasing liquidity.
Stefan Rust, Founder and CEO of Sonic Capital, said, “Our planet is facing a huge governance and accountability crisis around our environmental and social challenges. Consumers are increasingly demanding action and transparency in the societal and ecological impact of their products. Investors and businesses have a crucial role to play in adopting innovative solutions. The decentralized governance and open source nature of the blockchain can accelerate our trajectory toward eliminating our environmental debt and creating a sustainable future.”
