# Abatable Financial Model Robo-advisor platform for sourcing and managing high-quality carbon removal offsets, targeting asset managers. - Canonical: https://finamodel.com/startups/abatable - Excel download: https://finamodel.com/startup-models/abatable.xlsx - Category: Climate/Energy - Model type: Marketplace / GMV - Funding round: Seed - Funding: $3M - Founded: 2021 - Geography: Global (customer logos span US, UK, Europe; deck does not specify HQ geography). - Customer: B2B ## About the company Abatable is a robo-advisory platform for asset managers buying high-quality carbon-removal credits. It curates portfolios, vets credit quality, and finances developers through forward supply arrangements; the deck says it has secured 6.3 million tCO2e of credit supply. The commercial opportunity is the voluntary carbon market and the large asset managers making net-zero commitments. Abatable sells into PE, hedge fund, and alternative-asset managers, where offsetting investment holdings can create substantially more demand than offsetting a company's own operations. The model should combine client carbon budgets and credit prices with an advisory or transaction fee, plus any recurring management fee. It also needs a supply-financing schedule: committed offtakes create balance-sheet funding needs, interest cost, and potential financing income alongside the marketplace margin. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition - Platform described as a "robo-advisor for high quality carbon offsetting". - Three core pillars: 1. Portfolio diversification - curated mix of high-quality removal credits. 2. Trusted quality - vetting/selection layer to avoid reputationally risky avoidance credits. 3. Exclusive and financed supply - Abatable finances project developers to secure supply ahead of demand. - Supply-side angle: 6,300,000 tCO2e of credits already secured - this is a key moat claim. - Also offers "finance solutions for devs to secure supply", suggesting a project-financing or forward-offtake product alongside advisory. ## Market - Global Voluntary Carbon Market (VCM) projected to grow 100x by 2050 to $300B: - Volume: 0.1 → 10 GtCO2e - Price: $5 → $30/tCO2e (6x increase) - Net Zero Asset Managers initiative: $43T AuM, 128 signatories committed to net zero by 2050. - SAM (stated): $5B annual market opportunity from Net Zero Asset Managers segment alone - marked with asterisk, methodology not disclosed. - Key names already in high-quality offset market: Microsoft, Stripe, Shopify, BCG (used as proof-of-demand, not customers). ## Revenue model - Not explicitly stated in deck. - Implied model from product description: - Advisory/platform fee on carbon credit procurement (% of transaction or AuM-style management fee). - Possible spread/margin on credit resale if Abatable acts as principal buyer and resells to clients. - Potential financing income from project developer loans/forward offtake. - Channels: Direct B2B sales to asset managers (PE, hedge funds, alt asset managers). ## Traction & metrics - 6,300,000 tCO2e supply of credits already secured - only concrete traction metric. - No revenue figures, customer counts, ACV, or growth rates in deck. - Social proof: Microsoft, Stripe, Shopify, BCG cited as companies already buying high-quality removal offsets (not stated as Abatable customers). ## Competition / moat - Implicit competitive framing: incumbents rely on cheap avoidance credits that carry reputational risk (Bloomberg, Guardian citations). - Moat claims: - Proprietary secured supply (6.3M tCO2e already locked up). - Specialist expertise in carbon + finance + tech (Goldman Sachs ESG, Google, Monzo, Uber, Facebook backgrounds). - Target segment (asset managers) is underserved - demand scales 10–15x vs. operations-only footprint as AMs offset investment holdings. ## Team & funding ask / use of funds - Maria Eugenia Filmanovic, Co-founder - Goldman Sachs VP (ESG & Impact Investing, Nature-based Carbon Procurement). - Valerio Magliulo, Co-founder - PM background at Google, Monzo, Uber, Facebook. - Ed Schikurski, Head of Engineering - Staff Engineer at Monzo. --- ## Recommended financial model - **Archetype + why:** Carbon marketplace / B2B advisory revenue model with a supply-financing sub-model. Closest analogue is a commodity trading desk + SaaS advisory hybrid. Revenue modelled as: (1) transaction fee/spread on credit volumes procured for clients; (2) optional AuM-style annual management fee if clients place a recurring budget; (3) financing income on developer offtake agreements. A 3-statement P&L + cash flow is needed because the supply-financing book creates a balance sheet asset and funding requirement. - **Forecast horizon & granularity:** 5 years (Year 1–5), monthly in Year 1 (to track cash burn and supply-book drawdown), quarterly thereafter. - **Key drivers & assumptions:** | Driver | Value | | -- | -- | | Total addressable volume - Net Zero AMs segment | $5B annual spend | | VCM volume growth to 2050 | 100x (0.1→10 GtCO2e) | | Carbon credit price (current) | ~$5/tCO2e (avoidance); premium removal credits $20–50 | | Carbon credit price (2050 target) | ~$30/tCO2e | | Secured supply pipeline | 6,300,000 tCO2e | | Primary customer segment | Asset managers (PE, hedge funds, alt managers) | | Demand multiplier vs. operations offset | 10–15x as AMs offset investment holdings | | Transaction / advisory fee margin | 5–10% of credit value | | Average client annual spend (Year 1) | $500K–$2M | | Clients won (Year 1) | 3–5 | | Client growth rate (YoY) | 50–80% | | Supply financing cost of capital | 8–12% p.a. | | Gross margin on advisory | 60–70% | | Opex - headcount ramp | 3 FTEs now; +2/yr | | Average salary (blended) | $120K | - **Scenarios (Base / Bull / Bear - which variables flex):** - **Base:** Win 4 asset manager clients in Y1, grow 60% YoY; advisory fee 7%; carbon price follows deck midpoint trajectory. - **Bull:** Demand from investment-holdings offsetting materialises quickly (10x multiplier); 2–3 enterprise mandates per year from Y2; price premium on removal credits expands. - **Bear:** VCM regulatory or reputational setback slows corporate commitments; supply secured is harder to monetise; pricing pressure compresses margins; client ramp takes 2x longer. - **Required sheets / outputs:** 1. Assumptions - all drivers, switchable by scenario. 2. Volume model - tCO2e procured per client × clients; secured supply drawdown schedule. 3. Revenue build - advisory fee revenue + financing income. 4. P&L (Income Statement) - revenue, COGS, gross profit, opex, EBITDA. 5. Cash flow - operating cash + supply-financing book (capex-like asset build). 6. Balance sheet - supply inventory / forward contracts as asset; funding liability. 7. Funding need - when does cash run out; how much equity/debt required to finance supply book. 8. KPI dashboard - tCO2e procured, clients, revenue per client, gross margin, cash runway. ## Frequently asked questions ### Is the Abatable financial model free? Yes. The Abatable model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.