Exclusive: Carbon-credit startup nets $3M, led by Seven Seven Six

Alcove, a software startup that lets companies manage and track carbon credits, raised $3 million in seed funding, the company exclusively tells Axios.

Why it matters: Some tech investors are willing to step in on early-stage rounds even amid a broader slowdown in funding for climate software companies.

Details: Seven Seven Six led the all-equity round but is not getting a board seat, Alcove co-CEO Mariana Garza tells Axios.

• XYZ Venture Capital and a Sequoia scout also participated in the round. Garza declined to share the company's valuation.

How it works: Alcove makes enterprise software that allows companies to track and catalog carbon credits.

• Nashville-based clean energy company Clearloop is the startup's first customer, co-CEO Marley Rafson tells Axios.
• Its software was first created for credit suppliers — i.e. clean energy producers like Clearloop — but will eventually expand access to credit buyers, Garza says.

What they're saying: "We are the Switzerland of carbon," Garza tells Axios of the company's decision to not get involved with carbon credit verification or other elements of the carbon market beyond tracking.

The bottom line: It's a narrow use case, to be sure, but creates an appealing proposition for tech investors looking to back climate software in any form.