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Exclusive: Carbon Collective raises $2.2M for climate investing

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Illustration: Shoshana Gordon/Axios

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."

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