Pioneering a new era in sustainable finance, Crux has successfully procured $4.25m in a rapid seed extension round.
The company, co-founded by Alfred Johnson and Allen Kramer, both veterans of the software industry, is creating a novel ecosystem geared towards fuelling the transition to clean energy, propelled by the Inflation Reduction Act’s (IRA) provision for transferable tax credits.
The most recent fund injection of $4.25m was steered by Ardent Venture Partners, an experienced investor in the realms of finance for banks, marketplaces, and SaaS. Several existing investors, including Lowercarbon Capital, New System Ventures, Overture, and QED via Bolt, showed their ongoing commitment to Crux by enhancing their initial investment.
As an innovative player in the sustainable finance space, Crux employs a two-pronged approach. The company employs the provisions of the IRA, specifically the law’s transferable tax credits, to spur growth in clean energy projects. By offering an efficient platform for these transactions, Crux expedites the process of putting clean energy projects into action.
Funds raised from this round will be directed towards expanding the Crux team and accelerating product development, ultimately catalysing the growth of the clean energy market. Crux’s expanded team, which now includes professionals from energy, finance, and SaaS sectors, will be instrumental in driving this growth.
Additional backing from a diverse range of stakeholders reaffirms Crux’s potential. This includes Ørsted, one of the world’s largest renewable developers; LS Power, a firm specialising in power generation, electric transmission, and energy infrastructure; Canapi, a leading FinTech investment firm; Hartree Partners, a global energy and commodities firm, and Commonweal Ventures, an investor at the crossroads of technology and the public sphere.
Crux co-founder, Alfred Johnson, expressed the urgent need for sustainable finance, stating, “We urgently need to make sustainable finance more efficient. The IRA creates a tremendous opportunity to do that. Transferable tax credits are a key piece of the puzzle. With increased resources, Crux will be able to hire a bigger team and build out our product on a faster timeline, enabling the market to scale even more quickly.”
Phil Bronner, Managing Partner at Ardent Venture Partners, commented on Crux’s future prospects, stating, “Crux is well-positioned to be the leading ecosystem for sustainable finance—starting with transferable tax credits. America is entering a generational opportunity to lead the transition to cleaner, renewable energy. With its growing tools and network, Crux will be a key element of this transition.”
Since its public launch in April, Crux has already grown significantly. With this latest round of investment, Crux is poised to continue driving the clean energy transition, amplifying the reach and impact of sustainable finance.
Keep up with all the latest FinTech news here.
Copyright © 2023 FinTech Global