TL;DR: How OCOchem Secured Funding for Carbon Tech Against the Odds
OCOchem, a Washington-based clean tech startup, overcame political and financial challenges in the carbon utilization space to secure $2.15 million in 2026. Their success stems from aligning with policy-backed incentives like the U.S. carbon capture tax credit, demonstrating product viability with early shipments of CO₂-derived chemicals, and building global partnerships. Founders can learn from OCOchem’s approach to leveraging data, strategic relationships, and resilient narratives to attract investors despite a volatile market.
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How this CO2 Disposal Startup Raised Investment Despite Funding and Political Headwinds
When it comes to tackling climate change, startups in the carbon capture and utilization (CCU) sector face more than just a scientific challenge, they’re up against an uncertain political landscape, limited funding opportunities, and intense global competition. Yet, in 2026, OCOchem, a clean tech startup from Richland, Washington, defied these odds by securing a $2.15 million investment to expand its operations. This milestone wasn’t just about the money, it was about proving the potential of CCU technologies to create viable business opportunities even in turbulent times.
As a parallel entrepreneur who has raised millions for my ventures, including in notoriously difficult sectors like blockchain and legal tech, I find OCOchem’s success fascinating. Their ability to navigate political shifts and tight-fisted investors demonstrates a playbook that could inspire founders across industries. Let’s break down how they did it and what others can learn from their journey.
What is OCOchem and How Does Their Technology Work?
OCOchem’s innovation lies in its proprietary electrolyzer technology that transforms industrial CO₂ and water into chemicals like formic acid and potassium formate. These chemicals are incredibly versatile, serving as clean-burning hydrogen fuel, protein feedstocks, deicers, or even mineral recovery agents. Unlike traditional carbon sequestration methods, which bury carbon underground, OCOchem’s approach turns waste into valuable, marketable products.
According to OCOchem’s CEO Todd Brix, “We’re opening up new vistas by turning what many see as a liability, industrial CO₂, into an asset.” This paradigm shift offers a compelling narrative to investors, particularly those looking for both financial returns and measurable environmental impact.
How Did OCOchem Secure Funding in a Tough Market?
Raising capital during a downturn for climate tech requires a strategic mix of narrative, partnerships, and public policy alignment. OCOchem’s recent $2.15 million funding round highlights several smart moves:
- Leveraging Government Incentives: The U.S. retained its carbon capture tax credit under the “One Big Beautiful Bill Act,” increasing incentives for carbon reuse from $60 to $85 per ton. By aligning their business model with this policy, OCOchem tapped into a powerful economic driver for their investors.
- Proven Commercial Viability: In October 2025, OCOchem shipped its first metric ton of CO₂-derived potassium formate to a New York-based customer. Demonstrating tangible results gave investors confidence in the scalability of their technology.
- Strategic Partnerships: Collaborating with global leaders like b.fab (Germany) and ADM (Illinois) expanded OCOchem’s reach and diversified its applications. Partnerships like these lend credibility and access to broader markets, making the startup more attractive for funding.
- Technical Leadership: With a team led by former Microsoft executive Todd Brix and seasoned chief technologist Arun Agarwal, OCOchem’s leadership team brought both vision and expertise to the table.
Why Do Political and Financial Headwinds Persist?
The political and financial climate for climate tech founders has grown frostier in recent years. Federal funding cuts to large carbon removal projects (such as DAC Hubs) in 2025, combined with skepticism about the profitability of scaling CCU technologies, created a chilling effect across the sector. On top of that, geopolitical shifts diverted attention from climate issues to more immediate concerns like energy security and inflation.
For startups like OCOchem, navigating this environment requires aligning their narrative with economic priorities. As European entrepreneur Violetta Bonenkamp, I often advise startups to pitch their solutions not just as climate-friendly but as economically essential. “Talk about cost savings, supply chains, and risk mitigation,” I tell aspiring founders. Investors want more than greenwashing, they want hard numbers and pragmatic solutions.
What Lessons Can Entrepreneurs Learn from OCOchem’s Playbook?
- Know Your Policy Environment: Keep an eye on relevant tax incentives or grants and ensure your business model aligns with them. These can be deal-clinchers.
- Demonstrate Real Progress: Early wins, like OCOchem’s formate shipment in 2025, prove that your idea works and isn’t just theoretical. Investors are more likely to partner with you when you’ve de-risked your technology.
- Build Global Partnerships: Don’t limit your vision geographically. Collaborate with established players in your industry to increase credibility and open doors to new markets.
- Strengthen Your Team: A seasoned team, especially in emerging fields like CCU, can break through investor skepticism. Highlight each member’s unique expertise and how they contribute to the bigger picture.
- Shift the Narrative: The market for purely “green” solutions might be drying up; instead, frame your tech as economically strategic, with climate impact as a secondary benefit.
How to Stay Resilient While Fundraising
Staying resilient as a founder requires working smarter, not harder. Based on my experience building startups like Fe/male Switch, here are strategies to keep in mind:
- Focus on Non-Dilutive Funding: Grants and government incentives allow you to advance your technology, as OCOchem did, without sacrificing equity.
- Say Yes to Smaller Rounds: In tight markets, it’s better to secure runway through small rounds rather than holding out for a “mega-round” that may never come.
- Keep an Eye on Metrics: Investors are data-driven. Demonstrate traction through metrics that align with your industry, whether it’s revenue, product adoption, or partnerships.
- Turn Competitors into Customers: Partnerships can reduce direct competition and create win-win scenarios.
Conclusion: The Future of Sustainable Investment
OCOchem’s journey from innovation to investment is a masterclass in resilience, strategy, and adaptability. For founders, especially in cleantech and deeptech, their success underscores the importance of aligning solutions with economic incentives, building global partnerships, and delivering measurable results. As a founder, think not just about what problem you’re solving but also about how you can position your startup to ride the tailwinds of policy and economic shifts.
For aspiring entrepreneurs, the key takeaway is clear: capital is not a goal but a tool. Use it strategically, protect your equity, and walk into negotiations armed with data and a strong narrative. If you’re looking for ways to build smart, sustainable funding plans, check out the resources and playbooks available through Fe/male Switch, because your next funding milestone could look a lot like OCOchem’s.
FAQ on How OCOchem Raised Investment Despite Challenges
How did OCOchem's technology contribute to its funding success?
OCOchem developed proprietary electrolyzer technology that transforms CO₂ and water into versatile chemicals like formic acid and potassium formate. Demonstrating real-world results, like shipping potassium formate in 2025, showcased scalability to investors. Learn more about scaling cleantech breakthroughs.
What role did government incentives play in OCOchem's funding?
Aligned with the U.S. One Big Beautiful Bill Act’s increased carbon reuse tax credit, OCOchem reused industrial CO₂ profitably, securing investor confidence. Tax credits can be game-changers in industries like clean energy. Explore the 2026 funding landscape for startups.
How did partnerships help OCOchem attract investors?
Collaborations with global leaders like Germany’s b.fab and Illinois-based ADM introduced new markets and applications for OCOchem’s CO₂-derived products. These partnerships strengthened trust and market viability. Read how partnerships elevate startups.
Why is demonstrating early wins vital for startups like OCOchem?
By shipping its first CO₂-derived products in 2025, OCOchem showed its technology works beyond theory. Early proof of scalability de-risks investments and attracts capital. Understand the role of early wins in startup success.
How did political headwinds impact climate startups like OCOchem?
Federal funding cuts to major carbon removal projects and geopolitical shifts toward energy security made climate tech funding competitive in 2025-2026. Startups must align solutions with economic priorities to sustain value. Learn how startups adapt to shifts in policy.
What lessons can entrepreneurs take from OCOchem’s resilience?
OCOchem’s strategy, leveraging tax credits, forming partnerships, and providing measurable results, illustrates the importance of aligning narratives with economic benefits. Entrepreneurs should prioritize building credibility and market relevance. Check out insights on building resilient startups.
How important is leadership in securing cleantech investment?
OCOchem’s experienced team, including CEO Todd Brix and Chief Technologist Arun Agarwal, brought credibility and expertise, reassuring investors of their capability to scale operations. See how strong leadership drives startup growth.
Why are smaller funding rounds strategic during tight markets?
OCOchem closed a $2.15M funding round, showing that securing smaller amounts ensures business continuity while minimizing risks in uncertain markets. Explore strategic funding options for startups.
How are CO₂ startups navigating global competition?
Competition from the EU’s climate R&D investments pushed OCOchem to focus on innovation and partnerships. Diversification, like their formate applications in fuel and protein, mitigates risks. Discover global cleantech trends.
How can startups align with sustainability and profitability?
Startups should translate environmental benefits into commercial opportunities by framing green technology as cost-effective and market relevant. Investors seek impactful yet scalable solutions. Find strategies for sustainable investment success.
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the “gamepreneurship” methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the point of view of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.