Farmer Fintech ProducePay Is Getting Into the Carbon-Trading Game

David Shultz

David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.

A farm

Courtesy of Karsten Würth via Unsplash

It’s not exactly easy to understand what ProducePay does, so let’s get that out of the way first.

The Los Angeles-based fintech company essentially functions as a digital marketplace for produce that connects farmers to distributors and sellers.


“We go to your farm. We understand what your production capability is. If you need capital to achieve that, we help get that set up for you,” explains CEO Pablo Schwarzbeck. “Ultimately, we help you find the buyers—or for the buyers, help them find the sellers.”

Screenshot courtesy of ProducePay

To enable the trade of perishable goods like fruits and vegetables, ProducePay has had to become an underwriter for more than 1,500 farms across the Americas. Those farms can range in size from a few acres all the way up to multinational giants that supply hundreds or thousands of grocery stores. And the only way to figure out who to trust and how to lend money is by getting boots in the dirt. Schwarzbeck, who grew up on a fourth-generation farm in Northwest Mexico, spent nearly 100 days visiting farms during the pandemic last year.

“Do these people know what they're doing? Do they have any experience farming? Do they have the infrastructure to support it? Do they have accountants? Do they have a proper staff of people beyond farming that will ultimately be able to run this like a business? Do they have the partners to buy produce? Do we trust their partners?” asks Schwarzbeck.

ProducePay makes its money by taking a small percentage of each transaction completed on their site. It also lends capital to farmers and distributors it feels will be able to pay it back . And of course they’re also collecting and selling data on the cost and distribution of crops, among other industry insights.

“Our job really is to create transparency and trust that allows both parties to feel comfortable,” says Schwarzbeck.

The amount the company charges per transaction ranges from .5% to 10% and depends on the amount of value that ProducePay can generate for the client.

“We try to take about no more than one out of every four points that we get back,” says Schwarzbeck, meaning if ProducePay can help a farmer sell 40% more produce, it’ll take 10%. If it can only help them sell 2% more, the company takes 0.5%.

This sort of clinical approach to fintech underwriting has remained the core of ProducePay’s strategy since its inception. But this summer the company added a new pillar to their underwriting model: climate pricing.

With consumer demand for sustainably grown, low-carbon foods increasing, ProducePay is adding economic incentives to its platform to encourage farmers to lower their carbon footprint.

Through a partnership with ALLCOT, a company specializing in greenhouse gas emission offsetting, the fintech company is offering a way for farmers to access the carbon market.

Schwarzbeck says that many of the growers he works with were already practicing a variety of sustainable farming techniques. With ProducePay, they can now sell carbon credits on voluntary carbon markets, meaning they get paid to grow more sustainably. The specifics of how this plays out and which carbon markets are used can vary, but the idea is that ProducePay evaluates a farm, establishes how much carbon it’s using, and then recommends Climate-Smart Agriculture practices as outlined by the United Nations. Farmers can then practice strategies like crop rotation, minimum tillage and cover crops usage to reduce their carbon footprint. Once the carbon savings are calculated and confirmed by an external audit, they can be converted into credits and sold.

When used as a way for corporations to buy their way out of causing climate damage, carbon offsets remain dubious for a large variety of legitimate reasons. However, following sustainable farming practices can actually make a difference in the Earth’s carbon budget: Rather than buying a bandage for the damage a company is doing, selling credits incentivize farmers to do less damage to begin with. And Schwarzbeck says with consumer demand for sustainable produce constantly rising, adding the environmental pillar to their underwriting model has fundamentally changed how the company is doing business.

“Consumers are really starting to vote with their wallets,” he says. “That has been such a palpable movement in the market that has literally shifted how we underwrite the farmers right now.”

Billion-Dollar Milestones and Snapchat’s New Features

🔦 Spotlight

Happy Friday Los Angeles!

This week’s spotlight showcases LA’s thriving tech scene, featuring Snapchat’s latest feature updates and two local startups Liquid Death and Altruist, making TechCrunch’s Unicorn List for 2024.

Image Source: Snap

Snapchat’s recent fall updates bring fresh features, including a new iPhone camera shortcut for instant snaps, Halloween-inspired AI-powered Lenses, and Bitmoji costumes inspired by Mean Girls and Yellowstone. Bitmoji stickers now reflect trending Gen-Z expressions like “slay” and heart symbols for added flair in chats. Plus, the “Footsteps” feature on Snap Map allows users to track their past adventures privately, adding a nostalgic touch.

Image Source: Liquid Death

ICYMI, two LA startups joined the Unicorn Club—achieving valuations over $1 billion. Liquid Death, based in Santa Monica, is a canned water company with edgy branding and a humorous sustainability focus. Known for viral marketing and brand partnerships, it redefines bottled water as a lifestyle brand and environmental statement. In March, Liquid Death closed $67 million in strategic financing, raising its total funding to over $267 million and valuing it at $1.4 billion.

Image Source: Altruist

Altruist, a Culver City-based fintech platform, offers financial advisors streamlined tools to better serve their clients. With a user-friendly investment and account management platform, Altruist has gained strong traction in the finance world. In May, it announced a $169 million Series E funding round, bringing its total funding to over $449 million and earning a valuation of $1.5 billion.

Together, Liquid Death and Altruist exemplify LA’s capacity for innovation across diverse sectors, from lifestyle branding to fintech. Whether reshaping financial tools or redefining sustainable branding, these companies showcase LA’s unique entrepreneurial spirit. Go LA!

Check out TechCrunch’s 2024 Unicorn List here. And don’t miss Snapchat’s latest features—perfect for adding some fun, connection and maybe a few selfies this weekend!


🤝 Venture Deals

LA Companies

  • Freeform, a company bringing AI to metal 3D printing, raised $14M in funding from NVIDIA’s NVentures and AE Ventures to further develop its AI-powered 3D printing technology for industrial-scale production. - learn more
LA Venture Funds
  • Anthos Capital participated in a $70M Series D round for Carbon Robotics, which develops AI-powered robotics for precision agriculture, and the funding will be used to accelerate the growth of its autonomous weeding technology. - learn more
  • Anthos Capital participated in a $3.5M seed round for Plasma Network, aimed at expanding access to USDT stablecoins on the Bitcoin network, with the investment supporting the network’s growth and efforts to enhance stablecoin accessibility through the Lightning Network. - learn more

LA Exits


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      ⚖️FTC’s "Click to Cancel" Rule and Its Ripple Effect on Tech

      🔦 Spotlight

      Happy Friday Los Angeles,

      The FTC’s new “Click to Cancel” rule is shaking up subscription-based tech. Now, instead of navigating a maze of cancellation hurdles, users can cancel subscriptions as easily as they signed up—with a single click. This shift is a wake-up call for SaaS, streaming, and app-based companies, where once-hidden exit options often kept users around simply because canceling was a hassle.

      The rule also requires businesses to send regular renewal reminders, ensuring customers stay informed about upcoming charges. It's more than a cancellation button—it’s about transparency and giving users control over their decisions.

      For startups, the impact goes deeper than UX adjustments. Many have relied on "dark patterns," which subtly discourage cancellations by hiding the exit. Now, companies must shift toward building genuine loyalty by delivering real value, not by complicating exits.

      While this might affect retention rates initially, it could lead to more sustainable business models that rely on satisfaction-driven loyalty. Investors may start prioritizing companies that emphasize transparent, long-term engagement over those that depend on dark patterns to maintain retention metrics.

      The rule opens the door to more ethical UX design and a truly user-centered approach across the tech industry. It may even set a precedent against manipulative design in other areas, such as privacy settings or payment methods.

      Ultimately, the “Click to Cancel” rule presents an opportunity for the tech industry to foster trust and build stronger customer relationships. Startups and established companies that embrace transparency will likely stand out as leaders in a new era of customer-centric tech, where trust—not tricky design—is what retains users.

      As the tech landscape continues to evolve, LA Tech Week 2024 offers a chance to explore these shifts in real-time. Check out the upcoming event lineups to stay informed and make the most of your time:

      For updates or more event information, visit the official Tech Week calendar.


      🤝 Venture Deals

      LA Companies

      • Ghost, a company supporting top brands and retailers with streamlined logistics and fulfillment solutions, raised a $40M Series C funding round led by L Catterton to fuel its continued growth and innovation. - learn more

      LA Venture Funds
      • Assembly Ventures participated in a $27M Series A round for Monogoto, a provider of software-defined connectivity solutions that enable secure, cloud-based IoT and cellular network management on a global scale. - learn more
      • Angeleno Group participated in a $32M Series C round for REsurety, a company that recently launched an innovative clean energy marketplace aimed at providing better financial and operational insights to support renewable energy transactions. - learn more

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        🌴🧑‍💻 Your Guide to LA Tech Week 2024

        🔦 Spotlight

        Happy Friday Los Angeles,

        As many of you know, LA Tech Week is right around the corner, kicking off next Monday October 14th bringing together founders, creatives, investors, and engineers for a week of immersive events, panels, and socials across the city. From blockchain and AI to biotech and design, LA Tech Week is a chance to dive into the ideas shaping today’s technology landscape.


        What to Look Forward To

        Insights from Visionary Leaders: Hear firsthand from industry trailblazers as they share stories, challenges, and key lessons from their experiences. Expect fresh perspectives on AI, venture capital, biotech, and the ethical questions around emerging technologies.

        Interactive Panels: This week isn’t about watching from the sidelines; it’s about engaging directly with the tech community. Participate in hands-on panels discussing everything from startup scaling to ethical AI, with honest insights from those actively shaping these fields.

        Networking Mixers & Social Events: Meet and connect with founders, VCs, developers, designers, and fellow techies across LA. Rooftop mixers, lunch meetups, and creative gatherings offer the perfect chance to spark ideas and collaborate.

        Plan your week with the daily lineup, organized by location for easy navigation:

        For updates or more event information, visit the official Tech Week calendar.

        Enjoy LA Tech Week 2024!!


        🤝 Venture Deals

        LA Companies

        • Clout Kitchen, a Los Angeles and Manila based startup, has raised $4.45M in seed funding, co-led by a16z SPEEDRUN and Peak XV’s Surge, to develop AI-powered digital twins, which enables gaming creators to produce realistic virtual avatars for content and fan engagement. - learn more
        • MeWe, a privacy-focused social media platform, has raised an initial $6M in Series B funding led by McCourt Global to support Web3 integration and expand its decentralized network for 20 millions users. - learn more

          LA Venture Funds
          • EGB Capital participated in a $10M Series A funding round for MiLaboratories, which develops software that enables biologists to independently analyze complex genomic data, accelerating research and discovery in fields like drug development. - learn more
          • Crosscut Ventures participated in the $13.75M seed round for Airloom Energy, a company focused on developing airborne wind energy technology to harness high-altitude winds, with plans to accelerate a pilot project in Wyoming. - learn more
          • Overture VC participated in a $5.5M Seed funding round for Molg Inc., a company developing robotics and software for circular manufacturing, designed to disassemble electronics efficiently and recover valuable materials to reduce e-waste and support sustainable production. - learn more


            LA Exits

            • Options MD, a Los Angeles based telemedicine platform that provides care for people suffering from severe and treatment-resistant mental illness, is set to be acquired by Resilience Lab, an AI-driven provider focused on enhancing mental health care access. - learn more

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