A startup that’s helping companies track their ESG efforts has just secured a $27 million Series C.
Canadian startup Novisto, launched in 2019, offers a software platform for clients to monitor and measure their sustainability impacts.
“We have an accounting-like platform for broader sustainability-related data for corporates,” cofounder and CEO Charles Assaf told Business Insider.
“What is unique about that platform is that it becomes the system of records that really drives not just the reporting and the disclosure exercise, but also the broader management of the sustainability functions,” he added.
Novisto’s platform automates the collection and management of a company’s sustainability data — a task that can otherwise be time-consuming if done manually. It then compares a company’s ESG efforts according to industry benchmarks and outlines how well itis doing in relation to its competitors, for example.
“When your board is requesting specific targets to be tracked, these targets can’t sit in an Excel sheet — they have to sit in a system of record that ensures the auditability of that information,” Assaf said. “So a lot of companies have proceeded with externally assuring their ESG reports, and we have a mechanism to support this.”
As an enterprise software startup, Novisto makes its money by charging a monthly subscription fee to clients. Customers include the likes of Meta, JetBlue, and pharma giant Sanofi, among other conglomerates and blue-chip companies.
Amid fluctuating attitudes toward ESG policy globally, fueled in part by a change in the US administration, climate tech startups have been facing more headwinds while fundraising. As a result, startups in the sustainability sector have found more opportunities to expand in Europe, where there are more stringent guidelines for ESG reporting.
The Series C was led by Inovia Capital, with participation from all previous investors, including White Star Capital, SCOR Ventures, and Sagard. This brings the startup’s total funding to $55 million.
With the cash injection, Novisto will grow its team in Europe.
Check out the pitch deck used to secure the fresh funding.
