Novata Acquires Atlas Metrics

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Novata, a leading sustainability data platform for private markets, acquired Atlas Metrics, a Berlin-based ESG compliance and performance management provider founded in 2021, to bolster its European footprint and accelerate AI-driven innovations in sustainability reporting. The deal unites complementary technologies—Novata’s global-scale ESG analytics with Atlas Metrics‘ intuitive workflows and risk engines—enabling more efficient data management amid rising regulatory pressures like CSRD and SFDR, though financial terms remain undisclosed.

Novata, founded in 2021 and headquartered in New York, specializes in ESG data solutions for private markets, offering tools for data collection, carbon accounting, and regulatory compliance. It has raised approximately $51 million in funding, including a $30 million Series B in 2023 led by Hamilton Lane and a recent round led by S&P Global. Atlas Metrics, also founded in 2021 in Berlin, focuses on automating non-financial data for banks and funds, with about $19 million raised, highlighted by a €12.2 million Series A in September 2024 led by MMC Ventures. Both target private market players navigating ESG complexities.

Acquisition Details: The transaction, announced via BusinessWire, aims to create a unified platform for sustainability management without disclosed deal value. Post-acquisition, combined teams span New York, London, Berlin, and Singapore, serving hundreds of banks, venture firms, and corporates.

Anticipated Benefits and Impacts: Clients gain from AI-powered automations, secure data sharing, and multistandard reporting, potentially reducing manual efforts by weeks. For the industry, it advances resilience in sustainability data amid regulatory shifts, though broader adoption may vary by region.

Novata’s acquisition of Atlas Metrics marks a pivotal consolidation in the sustainability technology landscape, signaling a maturing market where data-driven ESG compliance is no longer optional but essential for private market resilience. This deal exemplifies how established platforms are absorbing innovative European startups to navigate global regulatory fragmentation and investor demands.

Profiles of the Acquiring and Acquired Entities

Novata emerged in 2021 as a purpose-built ESG platform tailored for private markets, addressing the unique challenges of illiquid assets where traditional financial metrics fall short. Its core value proposition lies in transforming disparate sustainability data into actionable insights, emphasizing secure collection, advanced analytics, and compliance with frameworks like TCFD, IFRS S2, SFDR, CSRD, and California’s SB54. The platform’s ecosystem includes user-friendly data intake tools with metric calculators and expert support, project management dashboards to supplant spreadsheets, and bespoke carbon solutions for Scope 1-3 emissions tracking, financed emissions calculations, and climate risk modeling. Novata’s advisory arm extends beyond software, offering strategic guidance on ESG integration, due diligence, and value creation, positioning it as a holistic partner for general partners (GPs) and limited partners (LPs) in private equity, venture capital, and real assets.

Financially, Novata has scaled methodically, amassing $51 million across three rounds. Its marquee raise was a $30 million Series B in February 2023, spearheaded by Hamilton Lane with backing from the Ford Foundation, S&P Global, and co-founders Alex Friedman and Josh Green. A follow-on Series B extension in May 2024, undisclosed in size but part of the broader $51 million tally, included investments from Motive Partners (a fintech arm of Apollo) and Microsoft Climate Fund. This capital has fueled global expansion, with offices in New York and Singapore, and integrations like S&P Global’s sustainability datasets for enriched benchmarking. By Q1 2025, Novata’s metrics guide highlighted investor-requested KPIs, underscoring its data-centric ethos. Revenue estimates peg Novata at around $19 million annually as of 2023, supported by a 119-person team focused on private market efficacy.

Atlas Metrics, likewise launched in 2021 amid Europe’s burgeoning green finance push, carved a niche as an “infrastructure for non-financial data,” automating ESG workflows for risk-averse institutions. Its platform orchestrates a Collect-Analyze-Act-Report cycle, leveraging AI for data aggregation, custom metric building, and multistandard reporting against protocols like GHG Protocol, PCAF, GRI, and SDGs. Standout modules include the Risk Engine for scanning global signals and flagging transition/physical risks; Atlas Intelligence for simulations and workflow optimization; the Data Network for value-chain connectivity; and Carbon Accounting for audit-ready emissions foresight. Materiality analysis via automated surveys and the Gross Value Added (GVA) model further quantify economic impacts under CSRD Pillar 3, enabling portfolio-wide visibility. Deployment is rapid—live in seven days—appealing to time-strapped compliance teams.

Atlas Metrics’ growth trajectory reflects strong European validation, with $19.1 million raised over three rounds. An early seed in 2021 bootstrapped operations, followed by a €5.2 million seed in April 2025 co-led by Cherry Ventures and b2venture, featuring VR Ventures/Redstone, Global Founders Capital, and Rivus Capital. The capstone was a €12.2 million Series A on September 30, 2024, led by MMC Ventures with participation from existing backers like another.vc and Redstone, earmarked for product scaling and compliance enhancements. This funding propelled client acquisition to over 200 banks, 150 funds, and 3,000 businesses across 15 countries and 30 sectors, with bank-grade security ensuring auditability. CEO Wladimir Nikoluk’s vision emphasized “simple, scalable” tech, resonating in a market where manual ESG efforts drain resources.

This table illustrates foundational synergies: both are young, tech-forward outfits with overlapping private market DNA, but Novata brings scale and advisory depth, while Atlas injects agile AI and regional entrenchment.

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Strategic Rationale and Synergies

The acquisition’s logic is rooted in market tailwinds: private markets, managing $13 trillion in assets, face escalating ESG scrutiny, with 70% of LPs prioritizing sustainability in allocations per recent surveys. Novata’s CEO Alex Friedman framed it as “building the global leader in sustainability management,” transforming data into “business resilience.” By absorbing Atlas, Novata addresses a key gap—European dominance—where CSRD mandates double materiality assessments for 50,000+ firms by 2026. Atlas’s tech stack, lauded for intuitive AI insights and seven-day onboarding, complements Novata’s robust backend, promising a “one-source-of-truth” platform for seamless reporting and risk flagging.

Operationally, integration unlocks immediate wins: combined client bases yield 13,000+ covered companies, with deepened ties to banks and VCs via Atlas’s network. AI automations could slash reporting timelines from weeks to hours, while shared secure data hubs facilitate value-chain collaboration, mitigating siloed data pitfalls. Post-deal, the entity leverages Novata’s S&P Global alliance for enriched benchmarks and Atlas’s GVA model for CSRD-aligned impact quantification. This isn’t mere bolt-on; it’s a bid for category leadership in a sector projected to grow from $1.5 billion in 2024 to $5.8 billion by 2030, per analyst forecasts.

Market and Industry Ramifications

In the broader sustainability tech arena—populated by incumbents like Workiva, Sphera, and startups like Plan A—the deal accelerates consolidation. It empowers financial institutions to “protect value and prevent losses” through proactive risk engines, aligning with PCAF standards for financed emissions. For private markets, where 80% of GPs cite data quality as a barrier, the unified offering could democratize advanced analytics, fostering trust and unlocking alpha from ESG factors. European stakeholders benefit most, with Atlas’s local expertise easing SFDR/VSME compliance amid EU Green Deal pressures.

Yet, implications ripple outward: investors like Hamilton Lane and MMC Ventures signal confidence in scaled solutions, potentially spurring M&A waves. Early coverage in outlets like ESG Today and Seeking Alpha emphasizes “deepened partnerships” and “product acceleration,” portraying it as a resilience booster in volatile climates. On X (formerly Twitter), nascent buzz from industry accounts echoes optimism, with posts highlighting the “exciting” scale-up for private markets. Quantitatively, the combined entity’s 400+ clients position it to capture share in a market where compliance costs average $500,000 annually per firm.

Potential Challenges and Risks

No deal is frictionless. Cultural melding—Novata’s US-centric advisory model with Atlas’s Berlin-honed agility—could test integration, especially across time zones. Tech harmonization risks short-term disruptions, like data migration hiccups, in a field where accuracy is paramount. Regulatory divergence (e.g., US SEC rules vs. EU CSRD) demands vigilant updates, and over-reliance on AI raises bias scrutiny. Moreover, with no terms disclosed, dilution concerns for Novata’s backers linger, though its strong balance sheet (bolstered by 2025 funding) mitigates this.

Looking ahead, the Novata-Atlas entity eyes “the next era of sustainability data,” per the announcement. Expect roadmap items like enhanced AI for predictive risk modeling and expanded GVA integrations for Pillar 3 disclosures. With teams in four hubs, global rollouts could target Asia-Pacific growth, leveraging Singapore. Long-term, it positions Novata as a $100 million+ revenue contender by 2028, contingent on execution. As Nikoluk noted, this union delivers “innovation, efficiency, and trust” at scale—pivotal for a sector where sustainability isn’t just compliance, but competitive edge.

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