Private Markets ESG Data Platform Novata Raises $30 Million
Private markets ESG-focused technology platform Novata announced today that it has raised $30 million in a series B funding round, less than a year after the commercial launch of its ESG data management platform.
Novata is a public benefit corporation founded in 2021 by a consortium including S&P Global, the Ford Foundation, asset management firm Hamilton Lane, and social change-focused investment firm Omidyar Network, and supported and advised by several leading private equity firms and pension funds, to provide private markets investors with a solution for ESG measurement, data collection and benchmarking, and enable reporting on ESG data.
Since its commercial launch in April 2022, Novata’s platform has experienced strong demand, with more than 3,500 private companies already contracted to use the platform. Novata expanded the platform’s capabilities in November 2022, adding benchmarking tools enabling users to compare ESG data against industry averages and identify opportunities for improvement.
Alex Friedman, CEO & Co-Founder at Novata, said:
“We are grateful to the broad range of leading investors supporting Novata, including financial institutions, large technology companies, non-profit organizations and private equity firms, which underscores how major facets of global economic activity are coming together to address our most critical common challenges. As sustainability priorities have undisputedly changed over the last decade, Novata is ideally positioned to meet the evolving challenges and to help drive progress on ESG transparency and reliability in the private markets.”
The new funding round was led by Hamilton Lane, and included participation from other existing investor the Ford Foundation, S&P Global, and Novata’s founders.
Erik Hirsch, Vice Chairman and Head of Strategic Initiatives at Hamilton Lane, said:
“As our industry continues to grow, we all face increasing expectations from investors, regulators, and the broader society to ensure that strong investment performance is delivered alongside responsible business practices. Novata is exactly the kind of neutral intermediary the private markets ecosystem needs to collect the metrics that matter and put them in context.”
Novata also announced that Microsoft joined the investor consortium in the funding round through its Climate Innovation Fund.
Brandon Middaugh, Senior Director, Climate Innovation Fund at Microsoft, said:
“Better collection and use of enterprise data will create new opportunities for every organization to achieve progress in addressing the world’s toughest environmental and social problems. Software technologies like Novata offer the capability to record and track sustainability metrics, informing corporate actions to build a more sustainable and inclusive future.”