Empowers Businesses to Integrate ESG Data Into Reporting & Decision Making, Funding Co-Led by Rho Ignition and Tola Capital
NEW YORK, Oct. 31, 2023 /PRNewswire/ -- ESG Flo, an AI-powered data infrastructure platform, announced today that it has secured $5.25 million in seed capital. The funding round was co-led by Rho Ignition and Tola Capital with participation from Bain & Company and Contour Venture Partners.
Sustainability teams currently spend most of their time manually collecting data and are buried by ineffective processes, often leading to errors and a waste of time and effort. ESG Flo launched earlier this year from Bain & Company's Founder's Studio to help businesses create a robust, auditable ESG (environmental, social, and governance) data infrastructure. The technology leverages AI automation and deep learning to gather data spread across the organization to create reporting that complies with the EU CSRD and US SEC non-financial disclosure requirements.
"We envision a business world where ESG conversations are as important as financial ones. We're on a mission to equip businesses with precise ESG data for integrated reporting and responsible decision making. Our new investors bring deep expertise in AI which will allow us to scale and support more businesses to take real steps in their sustainability journey," said Patrick Obeid, founder and CEO of ESG Flo.
"Many solutions focus on the frontend presentation of ESG data, but what companies are struggling with most is 'step zero' of the process, which involves mapping, collecting and transforming data. This is exactly what ESG Flo accomplishes with a scalable product that uses backend technology, such as machine learning, to transform raw data into high-accuracy metrics ready for third-party verification in a matter of seconds, saving time for your sustainability team," said Habib Kairouz, Managing Partner at Rho Ignition.
ESG Flo targets customers in the industrial, manufacturing and infrastructure sectors that need a centralized way to manage their sustainability data given stakeholder pressure and level of ESG impact.
"Amidst the evolving landscape of ESG regulations, including the forthcoming EU CSRD reporting and non-financial disclosure requirements in the US, there is an urgent demand for a robust data infrastructure that aligns with ESG regulatory mandates. Companies with strong ESG strategies gain a competitive advantage, and ESG Flo facilitates seamless integration of environmental, social, and governance factors into decision-making. This promotes sustainable and responsible practices that benefit stakeholders, the planet and future generations," said Karolin Beck, Venture Partner at Tola Capital.
With the new capital, ESG Flo will expand its solution to offer a CSRD and SEC readiness solution, hire best in class engineers for product development to advance its AI engine, and scale its growth and marketing team to support more customers. As part of this round, Karolin, Habib and Patrick Quinlan, a proven entrepreneur with an expertise in ethics and compliance, join the company's board alongside Ron Kermisch of Bain & Company.
Based in New York, ESG Flo is an AI-powered data infrastructure platform that provides customers in the industrial, manufacturing and infrastructure sectors with a solid ESG data infrastructure to manage their reporting and decision making needs. The company was founded in 2022 by Patrick Obeid, within Bain & Company' Founder's Studio, and has raised $5.25 million in seed funding from Rho Ignition, Tola Capital, Bain & Company and Contour Venture Partners. For more information, visit esgflo.com.
Rho Ignition, a division of Rho Capital Partners ("Rho"), focuses on early stage investments in disruptive and innovative technology markets, with a current focus on SaaS, AI, Healthtech, FinTech and Robotics. Rho, founded in 1981, has invested over $2 billion in more than 300 companies across multiple waves of technology innovation. Visit www.rho.com for more information.
Tola Capital is a venture capital firm that believes in the power of software, data, and AI to transform the way the world works. Founded in 2010 by experienced software operators at the forefront of cloud computing's rise, the firm backs entrepreneurs who have enterprise technology experience and are building disruptive, industry transforming solutions with diverse teams. Tola Capital has successfully exited numerous startups, and continues to evolve as it supports founders into the era of AI. Visit www.tolacapital.com for more information.
Read the press release about ESG Flo.