Clean energy tax credit transfer platform Crux has closed a $18.2 million series A funding led by venture capital firm Andreessen Horowitz.
Existing investors Lowcarbon Capital, New System Ventures, Overture, and The Three Cairns Group also participated in the funding. With this investment, Crux has raised over $27 million since its founding in April 2023.
The firm's platform connects developers, buyers, and intermediaries to tax credit transfer deals, made possible by the Inflation Reduction Act (IRA), and has been online since September 2023 (PFR, 10/11/23).
According to Crux, it has more than $8 billion of credits available for sale and 100 partners. The platform's clients include project developers, tax credit buyers, and intermediaries, for example, banks, tax advisors, and syndicators, which use Crux to manage transactions and access capital.
Earlier this month, Crux released its Transferable Tax Credit Market Report, which analyses the $3.5 billion worth of clean energy tax credit transfers in 2023. Since transferability guidelines were released in June 2023, both investment tax credits (ITCs) and production tax credits (PTCs) have become available for new and existing tax investors (PFR, 6/26/23).
According to the US Department of the Treasury and Internal Revenue Service (IRS), the new IRS Energy Credits Online portal has seen over 145 entities requesting registration numbers for more than 1,290 projects or facilities located in 40 states.
Crux is among several other novel online transfer platforms. Last year, Basis Climate launched its digital exchange, aimed to close transfer deals quickly, and closed a $100 million transfer of PTCs from a portfolio of wind projects (seller unnamed). First Round Capital-backed Evergrow also completed its first tax credit transfer funding in October 2023 (PFR, 10/11/23).
PFR covered the tax equity and transfer market in our New Year Special, featuring several experts in the industry. Click HERE to read the special report.