Name: Novata
Brand: Novata, Inc.
SKU: 68da5e37bf0528e35df221ca
Rating: 4.6 (46 reviews)

Overview of Novata Software Company

Novata is a public benefit corporation and certified B Corporation founded in 2021 to address the growing need for ESG (Environmental, Social, and Governance) data management in private markets. Headquartered in New York City, Novata was created by a consortium of influential organizations, including S&P Global, the Ford Foundation, Hamilton Lane, and Omidyar Network. Its mission is to empower private equity firms, venture capitalists, and private companies to navigate the complex ESG landscape with confidence and clarity. Novata provides a secure, intuitive platform that simplifies ESG data collection, benchmarking, carbon accounting, and regulatory compliance.

Founding and Growth

Novata was co-founded by Alexander Friedman, Christina Alfonso-Ercan, Josh Green, and others, with a vision to create a neutral, independent ESG platform for private markets. The company launched commercially in 2022 and quickly gained traction due to its unique positioning and robust technology. By 2023, Novata had reached $19 million in revenue with a team of 119 employees. As of 2025, the company has grown to over 141 employees and is estimated to generate $23.4 million in annual revenue.

Funding and Valuation

Novata has raised $51 million across three funding rounds:

Series A in November 2021, backed by Ford Foundation and S&P Global.
Series B in February 2023, led by Hamilton Lane and Microsoft’s Climate Innovation Fund.
Series B-II in May 2024, led by Motive Partners.

While the exact valuation figures are undisclosed, the company is considered a “minicorn” and is backed by a mix of venture capital, private equity, and philanthropic investors.

Product Offerings and Features

Novata’s platform is purpose-built for private markets and includes:

Framework Builder: Helps users select ESG metrics aligned with global standards like SASB, GRI, and CSRD.
Carbon Navigator: Digitized tool for measuring Scope 1, 2, and 3 emissions.
CSRD Solution: Includes double materiality assessments and ESRS-aligned workflows.
Benchmarking Engine: Enables comparison against anonymized ESG data from thousands of companies.
Due Diligence Platform: Streamlines ESG assessments during investment processes.
Advisory Services: Offers expert guidance on ESG strategy, carbon accounting, and regulatory compliance.
AI-Powered Reporting: Uses NLP to convert unstructured data into structured ESG disclosures.

The platform supports integrations with financial systems like S&P Global’s iLEVEL and offers secure, multi-user access with role-based permissions.

Novata AI and New Features

Recent innovations include:

Digitized Scoring Outputs: For ESG due diligence and portfolio monitoring.
Real-Time Benchmarking: Against market and portfolio standards.
Self-Serve Setup: For deal teams and portfolio companies.
PAI Automation Tool: For SFDR compliance, enabling automated reporting of Principal Adverse Impact indicators.

These features enhance usability, reduce manual effort, and improve regulatory readiness.

Company Culture and Values

Novata’s culture is built on four core values:

Integrity: Upholding ethical standards and professionalism.
Togetherness: Celebrating diversity and fostering inclusion.
Longevity: Committing to long-term impact and sustainability.
Agility: Embracing change and innovation.

The company supports multiple Employee Resource Groups (ERGs), including networks for Black employees, LGBTQIA+, women, and caregivers. Employees consistently praise Novata for its transparency, collaborative environment, and mission-driven focus.

User Base and Community

Novata serves a rapidly growing user base:

Over 10,000 companies contracted to use the platform.
More than $13 trillion in assets under management (AUM) is represented by its clients.
Active community engagement through webinars, newsletters, and a comprehensive Knowledge Base.

Its users include private equity firms, venture capitalists, portfolio companies, and sustainability teams across industries.

Novata

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