Novata has raised $30.0M in total across 1 funding round.
Novata's investors include Clearvision Ventures, Energy Impact Partners, Foundation Capital, Microsoft, National Grid Partners, TotalEnergies Ventures, Verve Ventures, Alexander Weiss, Susana Quintana-Plaza.
Novata is a technology company that provides a SaaS platform for ESG (Environmental, Social, and Governance) measurement, data collection, benchmarking, and reporting, primarily serving private markets including private equity firms, private companies, investors, lenders, and suppliers.[1][2][3][4] As a certified B Corporation and public benefit corporation founded in 2021 and headquartered in New York, NY, it streamlines ESG data management to empower these stakeholders in achieving sustainable and inclusive capitalism, backed by prominent investors like the Ford Foundation, Hamilton Lane, Microsoft, Northern Trust, Omidyar Network, and S&P Global.[2][3][4] The platform addresses key pain points by offering intuitive tools for metric selection, data contextualization, and actionable insights, reducing the burden of fragmented ESG reporting.[1][2][4]
Novata solves the challenge of ESG fragmentation in private markets, where most activity remains nascent in quantifying sustainability and social impact, enabling better decision-making, transparency, and accountability for investors and businesses.[1][4] With around 142 employees and a mission-driven structure—majority controlled by mission-oriented organizations and employees—it demonstrates growth momentum through high-profile backing and a focus on open-architecture scalability.[2][3]
Novata was established in January 2021 as a public benefit corporation, formed through a unique collaboration between non-profit and for-profit leaders in social justice, financial data, and private markets.[1][4] Key figures include CEO Alex Friedman, who highlighted the platform's role in uniting these groups to tackle ESG challenges previously plaguing public markets.[4] The idea emerged amid rising ESG interest in private markets, where private equity firms sought better ways to quantify societal impact for investors, but faced early-stage measurement hurdles and standardization gaps.[4]
A pivotal moment was its launch backed by a consortium including the Ford Foundation, S&P Global, Hamilton Lane, and Omidyar Network, marking the first such cross-sector alliance for private market ESG tools.[4] This non-profit/for-profit hybrid model provided early traction, positioning Novata to serve the majority of global economic activity driven by private companies.[4]
Novata rides the surging wave of ESG adoption in private markets, where investor demands for impact quantification are accelerating amid global sustainability pressures.[4] Its timing is ideal as private equity—driving much of the world's economic activity—shifts from early-stage ESG experimentation to standardized reporting, fueled by regulatory scrutiny, LP expectations, and market forces like climate commitments.[1][4]
By providing flexible, fragmentation-resistant tools, Novata influences the ecosystem by enabling private markets to lead in sustainable capitalism, potentially setting de facto standards that public markets struggled to achieve.[4] This positions it as a key enabler in the greentech and impact tech intersection, bridging non-profits, tech giants, and financiers to scale ESG data infrastructure.[2][3][4]
Novata is poised for expansion as ESG mandates intensify, with potential to dominate private markets data through its contributory database and AI-enhanced analytics amid growing compliance needs.[2][4] Trends like AI-driven sustainability metrics, regulatory harmonization (e.g., EU SFDR, SEC rules), and investor pressure for real-time impact will propel its growth, possibly through partnerships or acquisitions by backers like S&P Global.[3][4]
Its influence may evolve from niche ESG facilitator to ecosystem orchestrator, standardizing private market impact measurement and amplifying mission-aligned capitalism. As private markets mature in sustainability, Novata's platform will remain central, empowering organizations to turn ESG data into tangible positive change.[1][2]
Novata has raised $30.0M across 1 funding round. Most recently, it raised $30.0M Series B in February 2023.
| Date | Round | Lead Investors | Other Investors |
|---|---|---|---|
| Feb 1, 2023 | $30.0M Series B | Clearvision Ventures, Energy Impact Partners, Foundation Capital, Microsoft, National Grid Partners, TotalEnergies Ventures, Verve Ventures, Alexander Weiss, Susana Quintana-Plaza |
