Novata, a technology platform and public benefit corporation focused on Environmental, Social and Corporate Governance (ESG), has announced a successful Series B funding round, raising $30 million. The company provides the private markets with data management and analytics solutions that enable investors to align their capital flows with their ESG priorities.
The funding round was led by Hamilton Lane, with participation from existing investors, including the Ford Foundation and S&P Global. The company’s founders also took part, and Microsoft joined through its Climate Innovation Fund. Private equity firms, such as Clearlake Capital and Kohlberg & Company, were also part of the consortium.
Novata launched its ESG platform in April 2022, and has already signed up over 3,500 private companies. The platform’s unique benchmarking capabilities allow clients to compare non-financial data against public and private market industry averages, and identify opportunities for improvement.
Novata’s analytical tools are a market differentiator, offering a comprehensive view of ESG performance in private markets. The platform provides clients with access to anonymized and reliable data from thousands of companies in its contributory database.
“Novata is exactly the kind of neutral intermediary the private markets ecosystem needs to collect the metrics that matter and put them in context,” said Erik Hirsch, Vice Chairman and Head of Strategic Initiatives at Hamilton Lane.
Novata’s customizable and partner-agnostic offering represents a major step forward in the current landscape of sustainability tools and metrics. The Novata solution brings together the non-profit and for-profit sectors to drive impact toward sustainable and inclusive capitalism.
“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,” said Brandon Middaugh, Senior Director, Climate Innovation Fund at Microsoft. “Software technologies like Novata offer the capability to record and track sustainability metrics, informing corporate actions to build a more sustainable and inclusive future.”
Novata’s ESG Advisory Council, made up of global industry experts, provides direction on methodology and advises on the best path forward for ESG data in the private markets. Novata’s General Partner Advisory Committee, made up of leading private equity and credit firms, serves to inform its approach to product development and enable participating firms to share best practices.
