Axios: New $$ for CO2 Accounting Startup Iconic Air

Carbon accounting startup Iconic Air has raised $5 million in seed funding and its CEO said the new climate law and pending federal emissions disclosure rules provide more "tailwinds" in the already expanding market, Ben writes.

Driving the news: XYZ Venture Capital led the West Virginia firm's round, with participation from Garuda Ventures, the GTM fund, and investors from Country Roads Angel Network.

The company, which is focused on energy sector clients, is also today announcing the expanded availability of features on its Emissions Intelligence platform for current and future customers.

The big picture: Energy companies are under growing pressure to work with investors, boards of directors and regulators to produce new and more granular emissions disclosures — and show cuts.

"Carbon is now a part of capitalism," co-founder and CEO Kyle Gillis said in an interview.

What they're saying: Gillis said they closed the round before the climate law and the SEC's draft disclosure rules.

• But those policies — notably, fees on oil-and-gas industry methane emissions in the new statute — are driving interest, he said.
• When the Capitol Hill deal landed, "the first thing a lot of [clients] did was jump into our platform and give us a call around using it to help them understand the exact fees they would be paying and how they can start reducing [emissions]," he said.

What's next: The company has around 10 employees and Gillis sees that doubling by early-mid 2023. Iconic Air is on its way to having over 10 customers so far, he said.