Exclusive: Carbon Collective raises $2.2M for climate investing
Carbon Collective has raised a $2.2 million seed round for its climate-focused investment, retirement and robo-advising platform, Axios reports exclusively.
Why it matters: The startup has built a consumer-facing financial product it says brings even greater rigor to sustainable investing.
The details: Powerhouse Ventures, HyperGuap and Elevation Ventures participated in the round.
- Pre-seed investors Precursor Ventures and Climate Capital also participated.
What's happening: Carbon Collective offers its users a pair of sustainable portfolios, plus a 401(k) service it launched this spring, and robo-advising services.
- The company brings a strict approach to what's considered sustainable, ruling out not only fossil fuel companies but sectors that depend on fossil fuels.
- TL;DR: No carbon-capture and storage, no blue hydrogen, no airlines — at least not yet.
- "There are some exciting things with sustainable aviation fuel. Can they combust hydrogen instead of jet fuel or sustainable aviation fuels?" co-founder Zach Stein tells Axios. "Portfolios are always a work in progress, and we’re always working to be adaptive."
What's next: Carbon Collective is "planning to launch investment products," Stein says, citing compliance guidance. “I think that is as specific as I can be."