Sustainable financial technology company Crux announced today that it has raised $18.2 million in Series A funding, with proceeds from the funding aimed at supporting the company’s growth as it builds a sustainable finance platform for transferable tax credits, including organic and inorganic opportunities. The financing round brings the company’s total funding to date to over $27 million.

The financing follows the passage by the U.S. government in 2022 of the Inflation Reduction Act (IRA), which allocated nearly US$370 billion through a series of tax credits, loans, grants and subsidies to areas including renewable energy and industrial decarbonization solutions, and for the first time made these tax credits transferable, creating a new mechanism for funding energy transition projects.

Launched in January 2023 by Alfred Johnson and Allen Kramer, New York-based Crux is building a sustainable finance platform, starting its first offering, an ecosystem for buyers, sellers, and intermediaries to transact and manage transferable tax credits created by the IRA. The company is already working with more than 100 partners, has over $8 billion of credits currently available for sale, providing instantaneous access to billions of dollars of active buy-side interest. Crux’ clients include project developers, tax credit buyers, and intermediaries such as banks, tax advisors, and syndicators.

Crux said that the financing will allow the company to expand its team, increase annual transaction volumes and to launch new products.

Alfred Johnson, CEO and co-founder of Crux said:

“In the last year, we’ve built a world class team, launched our platform, and helped this new market take flight. This new round of funding will help us build even faster, grow the transferable tax equity market at a critical moment, and expand our services–furthering our mission of making 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 transferability of clean energy tax credits have propelled 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 renewable and decarbonization financial markets, offering unrivaled technology tools and building an unparalleled network of market participants.”