Novata
Overview
Novata is a public benefit corporation specializing in providing environmental, social, and governance (ESG) data management platforms for private markets. Founded in 2021, Novata is headquartered in New York City. The company was co-founded by Alexander Friedman, Christina Alfonso-Ercan, Scott Kennedy, Josh Green, and Owen Riddall. As of recent times, Novata has raised approximately $51 million through multiple funding rounds, with key investors including the Ford Foundation, S&P Global, and Hamilton Lane.
Recent Developments
- May 2024: Novata completed a Series B funding round led by Motive Partners. The funding aimed to expand Novata's capabilities and enhance its data management platform for ESG reporting.
- January 2024: Novata launched its Carbon Data Management solution, known as the Novata Carbon Navigator. This platform aims to help users monitor and report on carbon data, addressing the growing need for transparency and accountability in sustainability efforts.
- February 2023: Novata secured a $30 million investment in a Series B funding round spearheaded by Hamilton Lane, with participation from existing investors, including Microsoft through its Climate Innovation Fund.
- July 2023: The establishment of strategic partnerships with industry giants such as S&P Global Market Intelligence to facilitate the integration of ESG data with financial data, thus streamlining reporting processes for private market investors.
- Throughout 2023: Novata continued to enhance its platform by adding capabilities for benchmarking ESG data and partnering with firms like ERM to help organizations manage and optimize their ESG performance.
Company Information
| Attribute | Information |
|---|---|
| Founding Date | 2021 |
| Headquarters | New York, NY, USA |
| Founders | Alexander Friedman, Christina Alfonso-Ercan, Scott Kennedy, Josh Green, Owen Riddall |
| Revenue | Not Disclosed |
| Profits | Not Disclosed |
| Key Investors | S&P Global, Ford Foundation, Hamilton Lane, Microsoft |
| Industry | Data Infrastructure and Analytics |
| Number of Employees | Approximately 138 (as of 2024) |
Early History
Novata was founded in 2021 as a response to the increasing demand for robust ESG data solutions in private markets. The company was conceptualized by a consortium that includes both non-profit and for-profit entities such as S&P Global, the Ford Foundation, and Hamilton Lane to create a comprehensive technology platform for ESG data management. The founders, led by Alexander Friedman and others, envisioned a platform that would streamline the ESG data collection process and foster an inclusive and sustainable form of capitalism.
Novata quickly gained traction in the market due to its innovative approach to ESG data management. By April 2022, just a year after its foundation, the company had successfully launched its platform, catering to private companies' needs for data-driven ESG insights.
Company Profile and Achievements
Novata operates on a business model centered around providing a sophisticated ESG data management platform tailored for the private markets. It enables private equity firms, private companies, and venture capitalists to easily collect, analyze, and report ESG metrics.
- Business Model: At the core of Novata’s offerings is its robust platform designed for simplicity and effectiveness. The platform provides tools for data collection, metric benchmarking, and data analytics, targeting private market companies' unique needs.
- Achievements:
- Liaison and Partnerships: Novata has established itself as a pivotal player in the private markets by collaborating with key entities such as S&P Global and ERM to expand its service offerings.
- Platform Adoption: Since its inception, over 3,500 private companies have adopted Novata’s platform to streamline their ESG reporting processes.
- Award and Recognition: In 2024, Novata was awarded "ESG Solution Provider of the Year" by Private Equity Wire, reflecting its impact and leadership in the industry.
- Innovative Solutions: The introduction of the Novata Carbon Navigator in 2024 showcases their commitment to leading in carbon data management and reporting.
Current Operations and Market Position
As of 2024, Novata is recognized as a leader in the ESG data management niche, particularly within private markets. The company has carved out a competitive advantage through its innovative data platform and strategic partnerships. With the integration of financial and ESG data into a single platform, Novata positions itself as an indispensable partner for firms aiming to meet stringent ESG compliance and reporting requirements.
Novata enjoys a solid market presence, backed by a consortium of influential investors and partners, thereby underlining its credibility and trustworthiness. It continues to drive advancements in ESG transparency and data management solutions crucial for sustainable investment practices in private markets.
Conclusion
Novata has established itself as a significant player in the ESG data management landscape within private markets. The company’s ability to innovate and rapidly adapt to market demands ensures that it remains at the forefront of facilitating sustainable and inclusive investment practices. Looking forward, Novata is well-positioned to expand its influence further and drive meaningful progress in areas crucial for addressing global ESG challenges.