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Tag: rainforest

  • Coral reefs become first environmental system on Earth to pass climate

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    Coral reefs around the globe have for years suffered publicly in warming oceans, periodically making headlines when iconic underwater landscapes lose their colors and wither during repeated mass bleaching events caused by climate change. Now, reefs are the first environmental system on Earth to pass a climate “tipping point,” according to a new report by climate scientists who call the situation an “unprecedented crisis.”

    Researchers at the University of Exeter’s Global Systems Institute in England have released their second Global Tipping Points report, which examines some of the fundamental processes that support life on this planet in terms of their proximity to benchmarks that may signal permanent damage.

    “Tipping points represent critical thresholds in Earth’s climate system where small changes can lead to significant, often irreversible consequences,” the authors said in their report. Steve Smith, a research fellow at the Global Systems Institute and one of the report’s co-authors, told CBS News that tipping points are “all about that point at which change becomes self-propelling, kind of a self-accelerating change.”

    Bleached coral is seen at the Flower Garden Banks National Marine Sanctuary in the Gulf of Mexico on Sept. 17, 2023.

    LM Otero / AP


    The report, published Sunday, comes three years after the institute released its first iteration in 2022 and about a month before the United Nations hosts COP30, an annual climate change conference, in Belém, Brazil, a city in the Amazon rainforest that is itself an example of a major global ecosystem on the brink of a climate emergency. Tim Lenton, the director of the Global Systems Institute and lead author of the report, said in a statement that he hopes his team’s findings make it onto the agenda.

    “We are rapidly approaching multiple Earth system tipping points that could transform our world, with devastating consequences for people and nature,” his statement said. “This demands immediate, unprecedented action from leaders at COP30 and policymakers worldwide.”

    The 2015 Paris Agreement set upper limits for global warming at 1.5 to 2 degrees Celsius — between 2.7 and 3.6 degrees Fahrenheit — above average levels in preindustrial times. But leaders have repeatedly warned in the years since that countries are falling short of the emissions targets necessary to meet those temperature goals, with the U.N. declaring greenhouse gas emissions in the atmosphere reached all-time highs in 2023. By 2024, the National Oceanic and Atmospheric Administration reported temperatures had risen to about 1.4 degrees Celsius above the preindustrial average.

    “A new reality” 

    Higher ocean temperatures have already degraded coral reefs, which are crucial for marine life and provide habitats for roughly one-fourth of all underwater species. The new report points out that reefs also support the livelihoods of about a billion people, so their deterioration is as much an economic threat as an environmental one.

    Scientists have determined that the “tipping point” for coral reefs begins when global warming reaches about 1.2 degrees Celsius, with somewhere between 70 and 90% of coral dying when that number climbs to 1.5 degrees. 

    “We’re very confident that, unfortunately, we’re in the middle of the coral reef dieback,” Smith said, which, he explained, essentially means “the collapse of coral reefs worldwide.”

    Reef death is often catalyzed by bleaching, when heat stress causes coral to purge the colorful algae that sustains it and, in turn, become pale and weak. If the stress persists and bleaching is severe or prolonged, the coral can completely break down.

    Climate El Nino Dies

    In this image provide by NOAA, a fish swims near coral showing signs of bleaching off the coast of Islamorada, Florida, on July 23, 2023.

    Andrew Ibarra / National Oceanic and Atmospheric Administration via AP


    The International Coral Reef Initiative announced in April that an estimated 84% of the world’s coral reefs were under heat stress. As the new report notes, this is “the most extensive and intense” mass bleaching event ever recorded.

    Small pockets of coral are expected to survive, Smith said, and preserving them while minimizing the progression of warming temperatures should be everyone’s top priority.

    “We’re in a new reality whereby we can now say that we’ve passed the first major climate tipping point, which is the coral reefs,” he said. “And obviously we’ll have to, as we say, try to reduce the damage. The quicker that we can decarbonize and take greenhouse gases out of the atmosphere, the better.”

    Ice sheets, ocean currents and the Amazon rainforest

    Other environmental systems are on the verge of passing their tipping points, too, according to the report. In addition to coral reefs, it cited the potentially catastrophic effects of a warming world on the Amazon rainforest, ocean currents that influence weather patterns, and glaciers like the Greenland ice sheet, which is currently melting and shedding the equivalent of three Niagara Falls’ worth of freshwater into the North Atlantic every hour.

    “It’s a race against time, really,” said Smith. “We have to transform the whole energetic basis of society within a generation, away from fossil fuels and toward this cleaner, safer future to avoid these further tipping points beyond coral reefs and the devastating consequences that they would bring.”

    The report acknowledged meaningful headway has been made in the shift toward renewable energy, highlighting “positive tipping points” that have been crossed as the use of electric vehicles, solar power and wind power becomes more widespread. The rise of solar power, in particular, is one positive transition that Smith singled out as especially “remarkable” — although he emphasized that more still needs to be done, urgently, to bring the Earth back on track.

    “Getting that into the heads of our senior decision-makers is going to be important,” said Smith, “because what is traditionally thought of as high impact, low likelihood events, they’re actually becoming high impact, high likelihood, if we don’t do something now.”

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  • Rainforest lands $20M to challenge Stripe with embedded payments for SaaS providers | TechCrunch

    Rainforest lands $20M to challenge Stripe with embedded payments for SaaS providers | TechCrunch

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    Rainforest, a startup that embeds payment processing into other software platforms, has raised $20 million in Series A funding — less than a year after announcing the close of its seed financing.

    Raising back-to-back rounds was more common in 2021 but we don’t see it happening as often in this new environment. Rainforest’s traction is likely what helped draw new investor Matrix Partners as well as returning backers Accel, Infinity Ventures, BoxGroup, The Fintech Fund, Tech Square Ventures and Ardent Venture Partners. In total, the company has raised $31.75 million.

    In the past six months alone, Rainforest says it has grown its payment volume by 17x, signing on “dozens” of platforms across a variety of industries. The two-year-old Atlanta-based company also claims to have increased its valuation “by more than 2x” but declined to share specific numbers.

    CEO and founder Joshua Silver describes Rainforest as a payments-as-a-service provider that helps software companies “build and optimize” embedded financial services. It’s hardly alone in its mission, but Silver contends that his startup does it in a way that helps its customers make more money while being purpose built for SaaS companies’ specific needs.

    Rainforest is a Stripe alternative that allows software providers to facilitate payments from end customers to their business clients. For example, a software platform for residential roofing contractors would enable payments from homeowners to roofing contractors. Rainforest claims that it is different from the competitors that already do this (such as FIS, Fiserv and Stripe) because it’s purpose-built for SaaS companies and offers white-glove service.

    “There are too many payment products akin to fast food — they fill you up, but you’re sluggish, not nourished. Same for a SaaS,” Silver told TechCrunch. “Software companies can increase revenue per customer by 2x-5x by adding fintech, earning more revenue from embedded finance than from their core product. But that’s only possible when it’s fueled the right way.”

    Silver previously founded Patientco, a healthcare SaaS that he sold to Waystar (which went public earlier this month). Prior to starting Rainforest, he said he consulted with more than 50 software platforms on their payments strategies and learned they were dissatisfied with existing embedded payments providers. So he set out to try and build a better one.

    Competitors, he found, were usually large modern processors or PayFac providers, all with DIY service models. And none were built directly for software platforms — rather, they were designed with merchants in mind.

    “None of the modern processors were built specifically for software platforms. Most of them were built directly for merchants, and they’ve all had to retrofit their platforms even to accommodate basic payment processing and reporting functions for software companies,” Silver told TechCrunch at the time of Rainforest’s last raise.

    As a result, he said, Rainforest is capturing volume as software platforms migrate from legacy processors such as Fiserv and FIS. As that happens, it competes against companies like Stripe to embed financial services and payments.

    “We’re purpose-built for software platforms, whereas large modern processors, like Stripe, were originally built for direct merchant processing. They’ve retrofitted their platforms to support embedded payments, but mid-market software companies are not Stripe’s primary focus,” Silver told TechCrunch. “We hear every week from software companies who aren’t getting the support they need from Stripe. It’s not surprising, since when you look at Stripe’s recent annual letter and product announcements, they are all focused on enterprises.”

    Rainforest’s revenue model is entirely consumption-based, just like cloud services, with the company earning a small percentage of each transaction processed. Silver believes that Rainforest’s white glove service and transparent pricing is helping it win over customers. 

    “We have a simple, transparent pricing model and it’s posted publicly on our site because we have nothing to hide,” he said. “We handle all of the service, which in the payment space includes risk management and merchant onboarding, and compliance — all the things that software companies typically are not very good at. And for our partners, we manage all of the risk.”   

    One of its biggest recent customer wins is landing CRM and marketing automation platform Keap, which has 200,000 users and processes billions of dollars of payments.

    “Signing Keap was pivotal because it shows we can help large, established companies and we can win against big-name competitors,” Silver said.

    Over time, Rainforest has expanded into more verticals, such as field services and professional services, and deepened penetration in existing verticals like healthcare, retail and nonprofit. 

    On the product development front, it has added support for Apple Pay, 3DS and Plaid — which Silver believes will help platforms increase payments adoption while further reducing fraud. 

    “We’re one of the only payment providers using instant bank verification to accelerate merchant onboarding,” he said.

    It’s a large market. Financial services embedded into e-commerce and other software platforms accounted for $2.6 trillion of total U.S. financial transactions in 2021, and by 2026 it’s expected to surpass $7 trillion. 

    “The market we’re in right now is massive and nowhere close to being penetrated. There are thousands of mid-market vertical SaaS platforms in the U.S. alone,” Silver said. “UBS estimates total U.S. SMB merchant processing volume at $2.2 trillion, and an increasing portion of that volume is being processed through SaaS platforms as SMBs move away from traditional processors.”

    Looking ahead, Rainforest plans to use its new capital to “double down on product and support.”

    Presently, it has about two dozen employees.

    Matt Brown, partner at Matrix Partners, believes “trillions” in payment volume are shifting from “old-school solutions to modern software platforms with embedded financial services.”

    “I’ve founded and invested in companies with this software plus embedded financial services model over the last decade. I’ve seen dozens of approaches to payments, but none come close to Rainforest,” he said. “They’ve built their core tech, not just a wrapper around others. They’re experts not just in payments, but in SaaS, platform growth, risk and the many other areas you need to pull this off.”

    Another company in the space that recently raised funding is Forward, which works by enabling SaaS companies to rent its offerings as a service, collecting its own fees. Its software sits within its customers’ software, thus saving them money. And there’s also Gynger, which offers vendors selling technology a way to offer embedded financing through an accounts receivable platform that provides “flexible” payment terms. It recently announced a $20 million raise.

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    Mary Ann Azevedo

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