
TreeCard affords customers a spending and cash administration platform tied to a debit card constructed from wooden.
TreeCard
TreeCard, a climate-conscious digital cash app, raised $23 million from traders in a brand new financing spherical.
Based by British entrepreneur Jamie Cox in October 2020, TreeCard is a novel idea within the fintech world. It affords customers a spending and cash administration platform tied to a debit card constructed from wooden.
The agency makes use of 80% of the earnings it makes from card interchange charges to plant timber by way of a partnership with inexperienced search engine Ecosia. TreeCard has up to now planted greater than 200,000 timber.
The deal underscores elevated curiosity by VC traders in firms addressing local weather change. Funding for local weather tech startups hit a file $111 billion in 2021, in line with a report from U.Ok. startup community Tech Nation.
“There’s a whole lot of hundreds of thousands of individuals on this planet who’re altering their habits based mostly on the atmosphere,” Cox instructed CNBC in an interview. “There is not a brilliant app for the atmosphere but.”
Tremendous apps act as all-in-one platforms that serve a spread of consumer wants spanning prompt messaging, banking and journey. Cox envisages TreeCard changing into a brilliant app centered on local weather — his app features a sport that lets customers visualize what number of timber their exercise has helped produce, for instance.

Peter Thiel’s Valar Ventures was the most important investor in TreeCard’s spherical, whereas EQT, Seedcamp and climate-centric enterprise capital agency World Fund additionally chipped in. Valar is a prolific investor in fintech, having beforehand taken stakes within the likes of Smart and N26.
The platform, which continues to be working in beta testing mode, plans to make use of the funding for an official launch later in 2023. As well as, TreeCard will use the money to develop its roughly 30-person staff, with the purpose of practically doubling in dimension.
TreeCard is at the moment solely out there within the U.S., with a waitlist of greater than 250,000 shoppers. It’s now regularly onboarding customers. TreeCard plans to launch within the U.Ok. and Europe, too, “hopefully quickly,” Cox stated.
Although based mostly within the U.Ok., TreeCard selected the U.S. as its launch market. The U.S. has been a troublesome place for rival European fintechs. Monzo pulled its software to accumulate a U.S. banking license, whereas N26 shuttered its American operations utterly.
TreeCard is not a financial institution itself however affords its accounts by way of Sutton Financial institution, a regulated lender.
The TreeCard app features a sport that lets customers visualize what number of timber their exercise has helped produce.
TreeCard
Increased charges on the charges retailers should pay each time a buyer makes use of their card to spend make the U.S. a extra profitable alternative than Europe, TreeCard’s CEO stated.
However in line with Cox, what European fintechs usually get unsuitable within the U.S. is just not realizing “the sort of necessities on a finance product are very totally different to Europe.”
“When finance-type firms come from Europe, they do not perceive intimately the American viewers,” he instructed CNBC.
“Rewards are virtually at all times entrance and middle for particularly spending merchandise however loads of finance merchandise. It is extra of an afterthought in Europe.”
TreeCard affords shoppers as much as 3% of annualized curiosity on their deposits, a function it affords by way of third-party distributors.
“The dedication there’s that your funds aren’t used for fossil gasoline investments,” Cox stated.
Banks have channeled large sums of cash to help fossil gasoline firms down the years. Evaluation from marketing campaign teams Urgewald, Reclaim Finance and greater than two dozen different NGOs discovered that industrial banks channeled $1.5 trillion to the coal trade between January 2019 and November final 12 months.
TreeCard’s funding additionally defies among the troubles being confronted within the fintech sector, the place companies are placing itemizing plans on ice and reducing again on bills to brace for a possible recession. Klarna, the purchase now, pay later agency, noticed its valuation plunge 85% in July, and laid off 10% of its workforce.
“We can be hiring however we’ve got to watch out,” Cox stated. “The atmosphere is totally different from final 12 months.”
He added: “The important thing factor is that companies over the following 12 months and a half in all probability, shopper companies are going to have to search out methods to develop that are not simply typical, ‘plow a great deal of cash into Fb advertisements and get customers.’ That is not going to be the sustainable mannequin of development.”
Whereas at college, Cox based an organization known as Cashew, which he described as “Venmo for the U.Ok.” He later joined Peter Thiel’s Thiel Fellowship, a two-year entrepreneurship program, the place he began cloud computing startup FluidStack.
