Novata, a New York-based innovative technology platform, and public benefit corporation that provides the private markets with a cutting-edge Environmental, Social, and Corporate Governance (ESG) solution, announced that it raised $30 million in a Series B funding.
The round was Hamilton Lane, with participation from existing investors – the Ford Foundation, S&P Global, and Novata’s founders. The company is also announcing that Microsoft has joined the investor consortium through its Climate Innovation Fund.
In addition, partners and managing directors from a range of private equity firms participated in the round, including Canson Capital Partners, Clearlake Capital, Hellman & Friedman, Kohlberg & Company, Lindsay Goldberg, and The Vistria Group.
This funding round enables Novata to continue to meet the private markets' critical need for a simple and secure data management and analytics platform to enable investors to align their capital flows with the metrics that matter to them.
“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,” said Alex Friedman, CEO & Co-Founder at Novata. "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.”
Novata launched its unique benchmarking capabilities in November 2022, enabling clients to compare key non-financial data against public and private market industry averages and identify opportunities for improvement.
Its broad-reaching analytical tools are a market differentiator, offering an unprecedented view of ESG performance in private markets by providing clients with access to anonymized and reliable data from thousands of companies in its contributory database.
Company: Novata, Inc.
Round: Series B
Funding Month: February 2023
Lead Investors: Hamilton Lane
Additional Investors: The Ford Foundation, S&P Global, Novata’s founders, Canson Capital Partners, Clearlake Capital, Hellman & Friedman, Kohlberg & Company, Lindsay Goldberg, and The Vistria Group
Company Website: https://www.novata.com/
Software Category: ESG Software
About the Company: Founded in 2021, Novata is a public benefit corporation that enables the private markets to achieve a more sustainable and inclusive form of capitalism. Novata’s technology platform makes navigating the ESG landscape simple for private markets by identifying a clear starting point for selecting the metrics that matter, streamlining data collection, and contextualizing data to drive reporting and action. Since its successful commercial launch in April 2022, Novata has experienced significant global demand and today has more than 3,500 private companies contracted to use the platform. Novata’s simple, customized, and partner-agnostic offering represents a major step forward in the current landscape of sustainability tools and metrics.