Evergrow, an all-in-one platform for clean energy tax credits, has raised $7m in its second round of financing.
Existing Evergrow investors First Round Capital, XYZ Venture Capital, Congruent Ventures, and Garuda Ventures, joined the new investment round. The fresh capital brings Evergrow’s total capital raised to $14m.
The capital injection will help Evergrow expand its diligence, risk management, and transactional capabilities to support the market with access to energy projects and tax credits.
Evergrow claims to have over $150m worth of clean energy projects on its platform that are expected to come online over the next year.
The FinTech attributes its recent growth to the Inflation Reduction Act, which is the largest investment in clean energy and climate protection in American history. The law allocates hundreds of billions of dollars toward investment in clean energy. Nearly all the funding comes in the form of tax credits, it said.
Developers of clean energy projects generate tax credits whenever they build a new project, and these are then sold to fund costs. By purchasing these clean energy tax credits, Evergrow and its partners provide critical funding for these projects, unlocking the full potential of the IRA.
In 2022, the tax equity market was estimated at $20bn, and this is expected to double by 2024, Evergrow said.
Evergrow CEO and founder James Richards said, “I started Evergrow to accelerate the development of clean energy projects in the United States.
“Clean energy tax credits achieve this goal while also providing a compelling financial return for our partners. We look forward to broadening access to this unique, growing, and impactful segment of the capital markets while also enabling the development of more climate-positive infrastructure.”
In other ESG news, carbon management and accounting platform nZero raised $16m in its Series A funding round.
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