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Former WeWork CEO Adam Neumann’s Flowcarbon — a climate tech startup that aimed to put carbon credits on the blockchain — has reportedly started refunding investors after failing to deliver on its promises.
Buyers of the startup’s “Goddess Nature Token” have been contacted about getting refunds over the past month, as long as they sign a confidentiality agreement and waive any claims against Flowcarbon and its affiliates, Forbes reports. In 2022, Flowcarbon said it had raised $32 million from backers like Andreesen Horowitz, Samsung Next, and Invesco (IVZ-2.12%). At least $38 million came from sales of the Goddess Nature Token.
The tokens had been planned to be the equivalent of a carbon credit, or a certificate that companies buy en-masse to offset their greenhouse gas emissions. Each credit represents a metric ton of carbon dioxide that has been removed or stopped from entering the atmosphere. Companies like Tesla (TSLA-2.07%) have brought in billions of dollars in revenue by selling those credits to firms like Shell and Chevron, among others.
New York-based Flowcarbon told Forbes that it was “well known” that it has been offering refunds since last year, citing market conditions and industry delays.
Flowcarbon’s Carbon Smart Summit is set for later this month. Speakers include the startup’s chief business officer, head of carbon banking and markets, co-CEOs Dana Gibber and Caroline Klatt, Congressman Ritchie Torres, and a number of business and tech leaders.
Flowcarbon is not to be confused with Flow, one of Neumann’s other ventures that has also been backed by a16z. Flow, a residential real-estate company that has been valued at $1 billion, is working on a mixed-use project in Miami, Florida.
Neumann in May dropped his dropped his $650 million bid to take back WeWork and criticized the company’s plan to re-emerge from bankruptcy. In 2019, WeWork investor Softbank paid Neumann hundreds of millions to give up control and leave the firm after reports emerged of corporate misgovernance, excessive spending, and a reckless culture.