Net Purpose, a platform for sustainable investors, has raised £10 million in a Series A round led by ETF Partners following a year of record growth.
The round marks a shift in sustainable investing away from ESG Ratings and towards a high-quality fact-base of social and environmental performance.
Net Purpose has built the only independent fact-base in the market, and today powers close to $50 billion in sustainable funds.
The Series A Round will be used to expand its product and team, and launch new features to arm all investors with a complete overview of their sustainability by 2025.
New investors M-Tech Capital and Exceptional Ventures joined the round alongside existing investors Jim O’Neill, former chair of Goldman Sachs Asset Management, Kevin Gould, co-founder IHS Markit, the Louis Family, Illuminate Financial and Revent.
The company says that investors currently rely on a combination of reported and estimated data and ESG ratings, which often measure financial risk, not social and environmental return.
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Net Purpose has built an investment-grade fact-base of social and environmental performance, with the quality and transparency investors expect of financial data. The company provides data across a range of sustainability themes, including climate, water, waste, gender, financial inclusion, healthcare, and other social themes, and covers companies and all major investment indices.
The platform is powered by a combination of AI and human intelligence, which has helped Net Purpose to achieve the highest quality data in the market, and mobilise a crowd of next-generation analysts to ensure the platform evolves and aligns with sustainability standards.
“In the race to achieve climate and other sustainable goals, the sophistication of sustainable and impact investing is rapidly advancing. Investors are demanding the facts on the social and environmental performance of their funds, just like they do financial return,” said co-founder and CEO Sam Duncan.
“We are proud to arm investors with trusted and transparent data, and we are honoured to power the most sophisticated investors in the world.”
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