Zach’s background & how he came to start Carbon Collective

Zach grew up in the Bay Area and had a long-standing friendship with his co-founder, James, dating back to their early childhood. As Zach progressed through life, he found himself unsure of his career path after graduating from college in 2011. However, his journey led him to immerse himself in the urban agriculture scene in Berkeley, sparking a passion for sustainability and food-related initiatives. This newfound interest eventually steered Zach towards the world of technology and his first venture into entrepreneurship. On January 1, 2020, Zach and James co-founded Carbon Collective, an enterprise geared towards building better tools for individuals to collectivize climate action.

Shaandiin’s background & work at Powerhouse Ventures

Shaandiin is an Associate at Powerhouse Ventures, where she plays a crucial role in sourcing, conducting diligence, and providing post-investment support for the fund. Prior to joining Powerhouse Ventures, she worked at GreenBiz Group, a prominent media organization focused on corporate sustainability within the Fortune 1000 companies. Shaandiin’s work primarily revolved around the intersection of Climate Technology and Business, emphasizing her expertise in this field.

Having a diverse range of responsibilities, Shaandiin is known for wearing many hats. Originating from Arizona and the Navajo Nation, her upbringing instilled in her a deep concern for climate justice and environmental well-being from an early age. She actively incorporates principles of equity and just transition into her work, regardless of the specific tasks at hand.

Powerhouse Ventures operates as a climate tech fund that specializes in pre-seed and seed-stage investments. Their focus is on supporting founders who are developing software and digital solutions that contribute to decarbonizing energy and mobility sectors. It is important to note the distinction between Powerhouse and Powerhouse Ventures. While the former has a long-standing presence as a climate tech accelerator and boutique consulting firm for large energy and infrastructure companies, Powerhouse Ventures, where Shaandiin is situated, is a newer entity. Fund two was launched in 2018, and they recently invested in Carbon Collective, which was the final investment from their first fund. 

Powerhouse’s investment thesis & companies they are looking for

Shaandiin explains that Powerhouse Ventures’ investment thesis is centered around a few key concepts. First and foremost is the sense of urgency surrounding the current decade, which is crucial for addressing climate issues. With only seven years remaining, there is a pressing need to take action and make significant progress. Additionally, as part of the climate tech industry, Powerhouse Ventures acknowledges that existing technologies have the potential to achieve approximately 90% clean power and an 80% reduction in emissions. However, these technologies require investment and scaling. Therefore, the focus is on de-risking and scaling proven technologies globally and as rapidly as possible, primarily through software and fintech investments. By pursuing this approach, Powerhouse Ventures can allocate time and resources to deploy more complex technological solutions with longer commercialization horizons, typically spanning 10 to 30 years. While Powerhouse Ventures recognizes the importance of both hard tech and software, they are currently particularly dedicated to highly scalable digital solutions, collaborating with entities like Clean Energy Ventures and TDK, among others.

Carbon Collective’s theory of change

Zach explains that Carbon Collective’s theory of change revolves around the notion that addressing climate change necessitates a transformation in investment practices. He believes that building our way out of the problem is crucial, not only for individuals but also for larger-scale investments. To illustrate, he mentions the International Energy Agency’s estimate that an annual investment of $5 trillion is required for the energy transition while ceasing investments in new fossil fuel infrastructure. Currently, the investment figures are far from this target, with approximately $1.7 trillion invested in clean energy and $1.1 trillion in fossil fuels. Inspired by the unexpected events of the COVID-19 pandemic, Carbon Collective was founded with the intention of understanding the climate actions people were taking and the challenges they faced. Their initial goal was not to establish a finance company but to identify actions that could be undertaken collectively for greater impact and a more emotionally fulfilling experience. During this process, they discovered that many individuals who invested in Blackrock ESG funds were confused about the inclusion of certain companies and the underlying theory of change. This led them to question the efficacy of the sustainable investing solution offered by Wall Street, suggesting that ESG is a technology in the process of being disentangled rather than a well-suited product for startups. Consequently, they proposed a simple and climate-focused definition of sustainable investing as the most urgent sustainability issue of our time. This approach guides their investment strategy, which is transparent, straightforward, and designed to be easily understood by anyone, aligning with the long-term goal of retirement. Through this strategy, Carbon Collective aims to shift assets away from industries they deem unsuitable and redirect them toward industries that offer significant growth potential.

Resources Mentioned

• Carbon Collective
• Powerhouse Ventures 
• As You Sow
• FossilFreeFunds.org

Connect with Zach Stein & Shaandiin Cedar

• Connect with Zach on LinkedIn
• Connect with Shaandiin on LinkedIn

Connect with Jason Rissman

• On LinkedIn
• On Twitter

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