Funding Will Support Growth of Platform to Make Clean Energy Tax Credit Transactions Simple and Secure and Accelerate Fight Against Climate Change
SAN FRANCISCO, April 18, 2023 /PRNewswire/ — Evergrow, the all-in-one platform for clean energy tax credits, today announced the raise of a $7M second round of financing. The round was led by existing investors, including First Round Capital, XYZ Venture Capital, Congruent Ventures, and Garuda Ventures. This brings Evergrow’s total funding to $14M after a $7M seed round that closed in late 2021. Evergrow will use this additional funding to expand the platform’s diligence, risk management, and transactional capabilities, in order to accelerate the market for clean energy projects and tax credits. The company also announced that it now has over $150M worth of clean energy projects on its platform that are expected to come online over the next year.
Evergrow’s recent momentum is enabled by the passage of the Inflation Reduction Act (“IRA”), the largest investment in clean energy and climate protection in American history. The new law allocates hundreds of billions of dollars toward investment in clean energy. Nearly all of this funding comes in the form of tax credits. Developers of clean energy projects, including solar, wind, renewable natural gas, and storage, generate tax credits whenever they build a new project, and these are then sold to fund costs. By purchasing these clean energy tax credits, Evergrow and its partners provide critical funding for these projects, unlocking the full potential of the IRA.
“I started Evergrow to accelerate the development of clean energy projects in the United States,” said James Richards, CEO and founder of Evergrow. “Clean energy tax credits achieve this goal while also providing a compelling financial return for our partners. We look forward to broadening access to this unique, growing, and impactful segment of the capital markets while also enabling the development of more climate-positive infrastructure.”
In 2022, the tax equity market was estimated at $20 billion, and is expected to double by 2024. Therefore, demand for clean energy tax credits must also grow significantly, otherwise clean energy development could become slower, more expensive, or both. By providing a platform for market participants to transact, Evergrow is helping to increase liquidity for clean energy tax credits and democratizing access to an entire asset class that has historically only been available to a handful of Wall Street banks and the very largest corporations.
“We have full confidence in the Evergrow team and we’re excited to deepen our partnership with them.” said Bill Trenchard, Partner, First Round Capital. “The IRA is America’s largest ever investment in clean energy and carbon capture. We believe Evergrow will play a leading role in unlocking its full potential.”
Evergrow provides funding for clean energy projects in the United States by financing clean energy tax credits. By partnering with Evergrow, developers, corporations, brokers, syndicators, and other market participants can easily transact in green tax credits, which provides funding for new clean energy infrastructure projects. For more information, visit https://evergrow.com.