Research-backed opportunity analysis

ASIC Just Mandated Climate Disclosures.
Most Australian Companies Still Use Spreadsheets.

Watershed raised $100M+ at a valuation building carbon accounting for US enterprises. Persefoni charges $100K-$500K/year. Australia's AASB S2 mandatory reporting is rolling out NOW -- and the $5K-$50K/year tier is completely empty. I did the research. Now I need a co-founder who knows sustainability and ESG.

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Opportunity Score
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TAM (Conservative)
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Market CAGR
$1.8B Watershed valuationAASB S2 mandatory reporting NOW$0 affordable AU tools15%+ market CAGR$200M-500M TAM conservative18/25 opportunity score $1.8B Watershed valuationAASB S2 mandatory reporting NOW$0 affordable AU tools15%+ market CAGR$200M-500M TAM conservative18/25 opportunity score
The Problem
Mandatory reporting is here.
Nobody has an affordable tool.
AASB S2 mandatory climate-related financial disclosures are rolling out 2025-2028. Large companies must report. Their supply chains -- thousands of SMBs -- will be forced to provide emissions data. Enterprise tools cost $100K+/year. The SMB tier is a desert.

"ESG data quality is terrible -- companies can't accurately measure Scope 1, 2, or 3 emissions."

ESG Industry Research 2025

"Scope 3 supply chain traceability is the biggest pain point -- companies have no idea what their suppliers emit."

Corporate Sustainability Survey

"Consultants charge $50K-$200K for manual carbon audits that are outdated by the time they're delivered."

AU Sustainability Analysis

"Mid-market companies facing AASB S2 have no affordable tooling. The $5K-$50K/year tier is completely empty."

Market Gap Analysis 2025
Global Proof
Someone already built this.
Just not for Australian SMBs.
Three companies, three massive outcomes. Carbon accounting is a proven category. But enterprise pricing locks out the companies who need it most.
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Watershed
United States · $1.8B Valuation
Carbon accounting for enterprises. Clients include Stripe, Airbnb, DoorDash. $100K+/year pricing means SMBs are locked out.
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Persefoni
United States · $101M Raised
AI-powered carbon accounting for financial institutions. $100K-$500K/year pricing. Zero focus on AU emissions factors or NGER/AASB S2.
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Normative
Sweden · $25M+ Raised
Carbon accounting for SMBs. More accessible pricing but EU-focused -- doesn't know AU National Greenhouse Accounts Factors or NGER.
The Gap
Why Australia doesn't have this yet
The opportunity persists for structural reasons that protect whoever enters first.

AASB S2 is brand new -- greenfield demand

Mandatory reporting is just rolling out. No incumbent exists. No one has built the affordable tool for AU-specific emissions factors, NGER reporting, and Safeguard Mechanism compliance.

Enterprise tools are US/EU-focused

Watershed and Persefoni use US/EU emissions factor databases. Australia has unique requirements: National Greenhouse Accounts Factors, state-based electricity grids with different carbon intensities, NGER thresholds.

The SMB tier is completely empty

Enterprise tools cost $100K-$500K/year. Consultants charge $50K-$200K per audit. The $99-$499/month tier that connects to Xero and auto-calculates emissions from accounting data doesn't exist.

Supply chain pressure creates forced adoption

BHP, ANZ, Woolworths, and every large company committed to net zero will force their SMB suppliers to report emissions. Those suppliers have no affordable tool.

The Market
Regulatory-forced demand
AASB S2 means this isn't optional. Every mid-market company and their supply chain must report.
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Total Addressable Market
Conservative estimate
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Market CAGR
Carbon accounting growth
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Watershed Valuation
US proof of category
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Affordable AU Tools
Zero competition
18/25
Opportunity Score
Regulatory-forced adoption = low churn

Revenue model: SMB tier at $99-$499/month (auto-calculation from Xero data). Mid-market at $1,000-$5,000/month. Enterprise at $50K-$200K/year. 500 SMBs at $299/month = $1.8M ARR. Regulatory-forced adoption means low churn.

The Partnership
Two halves of the same company
I can build the platform. I need someone who understands emissions science, NGER reporting, and can sell to sustainability teams.

What I Bring

The AI engineering, product, and infrastructure.

  • Full-stack AI engineer. Built 5+ production products from zero.
  • Xero/MYOB API integration expertise. Auto-extract energy and fuel expenditure data.
  • AI-powered emissions calculation engine using AU National Greenhouse Accounts Factors.
  • Dashboard, reporting, and compliance document generation.
  • Already completed deep market research and competitive analysis.
Tech founder: covered

What I Need

The domain expertise, sustainability credentials, and first clients.

  • Deep knowledge of NGER, AASB S2, Safeguard Mechanism, and AU emissions reporting requirements.
  • Understanding of Scope 1, 2, 3 methodology and AU National Greenhouse Accounts Factors.
  • Network of sustainability managers, ESG consultants, or corporate compliance teams.
  • Can validate the product with real companies in major supply chains (BHP, ANZ, Woolworths).
  • Wants to build something massive, not consult on the side.
Domain founder: you?
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The Deal
Let's explore this together. Clear division.

This is a co-founder search, not a job ad. I'm looking for someone who wants to own half of this company and build it together from day one.

You Bring

Domain expertise in sustainability/ESG. NGER/AASB S2 knowledge. Industry network. First 10 pilot companies.

I Bring

AI/full-stack engineering. Xero integration. Emissions calculation engine. Dashboard and reporting. Market research already done.

Equity Split

We'll figure out the right structure together. What matters first is whether we're the right fit.

Funding Path

R&D Tax Incentive (43.5%), ARENA innovation funding, Startmate ($120K), then Giant Leap / Virescent Ventures seed round.

"AASB S2 mandatory reporting creates forced adoption. Build the $299/month version that plugs into Xero, and you own the SMB tier before anyone else shows up."

The Roadmap
How we'd build it
Start with Scope 1+2 from Xero data. Expand to Scope 3 and reduction pathways.
1
Week 1-2

Validate with 10 mid-size companies

Talk to companies in supply chains of BHP, ANZ, Woolworths. Ask: "Have your major customers asked for emissions data yet? Would you pay $299/month for automated carbon reporting?"

2
Week 3-5

MVP: Xero + AU Emissions Factors + Report

Connect to Xero/MYOB. Auto-extract energy and fuel expenditure. Apply AU National Greenhouse Accounts Factors. Generate AASB S2-compliant carbon report.

3
Month 2-3

Pilot with first 10 companies

Real-world validation with manufacturers, construction, and professional services firms. Iterate on emissions factor accuracy. Apply for ARENA funding and Startmate.

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Month 4-6

Expand: Scope 3, Reduction Pathways, ESG

Add Scope 3 supply chain emissions. Reduction pathway planning. Offset marketplace. Full ESG reporting. Target 200 companies. Approach Giant Leap for seed.

Let's Talk

If you know sustainability, ESG, or climate reporting and want to co-found something massive, I'd like to hear from you.

This goes directly to my inbox. No mailing list, no spam. I'll respond personally within 24 hours.

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