Novata, a platform and public benefit corporation that provides private markets with an ESG solution, has scored $30m in a Series B raise.
The round was led by Hamilton Lane and saw participation from the Ford Foundation and S&P Global.
In addition, Microsoft joined the investor consortium through its Climate Innovation Fund. Partners and managing directors from companies such as Clearlake Capital, Lindsay Goldberg, The Vistria Group, Canson Capital Partners and Hellman & Friedman.
Novata claims its solution takes a much-needed systems-wide approach in the private markets, bringing together the non-profit and for-profit sectors to help drive impact toward sustainable and inclusive capitalism.
Since its launch in 2022, Novata has experienced significant global demand and today has more than 3,500 private companies contracted to use the platform.
The company 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.
Novata also launched its broad-reaching analytical tools, which it claims offering an unprecedented view of ESG performance in private markets by providing clients with access to anonymised and reliable data from thousands of companies in its contributory database.
Novata said its funding will enable the company to meet the private markets’ need for a simple and secure data management and analytics platform to enable investors to align their capital flows with the metrics that matters to them.
Novata CEO and co-founder Alex Friedman 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.”
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