Sustainable financial technology company Crux today announced it has raised $18.2 million in Series A funding, with proceeds from the financing aimed at supporting the company’s growth as it builds a sustainable financing platform for transferable tax credits, including organic and non-organic possibilities. The funding round brings the company’s total funding to date to more than $27 million.
The funding follows the US government’s 2022 passage of the Inflation Reduction Act (IRA), which allocated nearly $370 billion through a range of tax credits, loans, grants and grants to areas such as renewable energy and industrial decarbonization solutions of the economy. for the first time, these tax credits have become transferable, creating a new mechanism for financing energy transition projects.
Launched in January 2023 by Alfred Johnson and Allen Kramer, New York-based Crux is building a sustainable financing platform and launching its first offering: an ecosystem for buyers, sellers and intermediaries to redeem IRA-created transferable tax credits to trade and manage. The company already works with more than 100 partners and currently has more than $8 billion in credits available for sale, providing immediate access to billions of dollars in active buying interest. Crux’s clients include project developers, buyers of tax credits and intermediaries such as banks, tax advisors and syndicators.
Crux said the funding will enable the company to expand its team, increase annual transaction volumes and launch new products.
Alfred Johnson, CEO and co-founder of Crux said:
“Over the past year we have built a world-class team, launched our platform and brought this new market to fruition. This new round of funding will help us build even faster, grow the transferable tax equity market at a crucial time and expand our services, furthering our mission to make sustainable finance more efficient and interconnected.”
The round was led by Andreessen Horowitz and joined by existing investors Lowercarbon Capital, New System Ventures, Overture and The Three Cairns Group.
David Haber, General Partner at Andreessen Horowitz said:
“Recent policy changes around the portability of clean energy tax credits have driven market growth beyond expectations, fundamentally transforming how clean energy and decarbonization projects are financed in the United States. Crux plays a critical role in the financial markets for renewable energy and decarbonization, offering unparalleled technology tools and building an unparalleled network of market participants.”