NEW YORK – Following the federal government’s release of guidance regarding the Inflation Reduction Act’s (IRA) rules for tax credit transferability, Crux is announcing $4.25 million in new fundraising led by Ardent Venture Partners. Launched publicly in April, Crux has created a new ecosystem for sustainable finance that will accelerate clean energy projects made possible by the IRA, beginning with the law's transferable tax credits.
Crux is co-founded by Alfred Johnson and Allen Kramer, who previously founded and exited a successful marketplace software company for mission-driven enterprises, Mobilize. They are joined by Rob Parker, who serves as Chief Commercial Officer, bringing 20+ years of experience in the power industry and most recently holding the position of CFO at Rev Renewables. Since April, the Crux team has grown rapidly, with six additional world-class hires from energy, finance, and SaaS joining to power the clean energy transition.
This most recent capital raise was led by Ardent Venture Partners, an initial investor with rich experience in embedded finance for banks, marketplaces, and SaaS. Existing investors also increased their initial commitment, including Lowercarbon Capital, New System Ventures, Overture, and QED via Bolt.
Additional investors representing all sides of this significant new market participated as well, including Ørsted, one of the largest renewable developers in the world; LS Power, a development, investment, and operating company focused on power generation, electric transmission, and energy infrastructure; Canapi, a leading fintech investment firm backed by top financial institutions; Hartree Partners, a global energy and commodities firm, backed by Oaktree/Brookfield that plays a leading role in carbon finance; and Commonweal Ventures, which invests in the intersection of technology and the public sphere.
“We urgently need to make sustainable finance more efficient. The IRA creates a tremendous opportunity to do that. Transferable tax credits are a key piece of the puzzle,” Johnson said. “With increased resources, Crux will be able to hire a bigger team and build out our product on a faster timeline, enabling the market to scale even more quickly.”
“Crux is well-positioned to be the leading ecosystem for sustainable finance—starting with transferable tax credits,” Phil Bronner, Managing Partner at Ardent Venture Partners, said. “America is entering a generational opportunity to lead the transition to cleaner, renewable energy. With its growing tools and network, Crux will be a key element of this transition.”
Financing the U.S. clean energy transition and realizing the full benefits of the transformative Inflation Reduction Act will require efficiently monetizing tax credits and harnessing new provisions for transferability,” said Varun Sivaram, SVP of Strategy & Innovation at Ørsted. “As a global clean energy leader, Ørsted is committed to supporting innovation and technology that will speed the deployment of renewable energy projects across the country and support a robust green supply chain. Through Ørsted Ventures, we are delighted to partner with the terrific, well-rounded team at Crux, which we believe is ideally positioned with their approach to creating an efficient ecosystem to transact and manage tax credits to help unleash clean energy investment flows that could reach trillions of dollars in the United States.”
Over the last decade, clean energy project growth has accelerated exponentially. The IRA aims to deepen and accelerate the transition to cleaner, more renewable energy by making the law's tax credits transferable. The transferability of the IRA's tax credits will act as a force multiplier for these investments. Still, businesses, developers, and financial institutions face the challenge of transacting efficiently to get shovels in the ground quickly. Crux's software and network will make these transactions less expensive, faster, and more accessible, catalyzing clean energy investment.
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