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Neeka Mashouf and Leila Mashouf
Neeka Mashouf and Leila Mashouf

Rubi sisters turn CO₂ into textiles with $7.5M funding

18 March 2026Updated:18 March 2026 Venture Capital No Comments2 Mins Read
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Rubi sisters secure $7.5M to turn CO₂ into textiles

Climate-tech startup Rubi, founded by sisters Neeka Mashouf and Leila Mashouf, has raised $7.5 million in fresh funding to scale its technology that converts captured CO₂ into textile-ready materials. The company is positioning itself as a next-generation supplier to major fashion and apparel brands seeking to slash their environmental footprint.

Bioreactors that mimic photosynthesis

Rubi uses proprietary bioreactors and engineered microorganisms to mimic the process of photosynthesis. Instead of relying on land- and water-intensive crops such as cotton, the system feeds pure carbon dioxide into these microbes, which then produce cellulose-rich material that can be processed into fibres and yarns for the textile industry.

According to the founders, the process is designed to be carbon-negative, meaning it removes more greenhouse gases from the atmosphere than it emits. By bypassing agricultural inputs and toxic chemistry, Rubi aims to deliver a lower-impact alternative to both conventional cotton and fossil-based synthetics like polyester.

Targeting fashion’s emissions problem

The global fashion industry is responsible for an estimated 8–10% of worldwide carbon emissions, driven by resource-heavy fibre production and complex supply chains. Rubi is pitching its technology as a plug-in solution for brands that have set ambitious net-zero and science-based climate targets but lack scalable materials to meet them.

With the new $7.5M backing, the sisters plan to expand pilot production, refine their CO₂-to-cellulose platform, and deepen collaborations with global retailers. Early trials reportedly focus on staple fabrics for everyday garments, where even marginal emission reductions could translate into significant climate impact at scale.

Positioning within climate-tech and materials science

Rubi joins a wave of climate-tech and carbon capture startups that are turning waste emissions into valuable commodities, from fuels to construction materials. By targeting textiles, the company taps into a massive, brand-driven market that is under mounting regulatory and consumer pressure to decarbonise.

The founders argue that coupling CO₂ utilization with mainstream fashion offers a rare combination of climate benefit and commercial viability. As brands scramble for credible low-impact materials, Rubi aims to position its CO₂-derived fibres as a drop-in replacement that aligns with both sustainability commitments and performance requirements.

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