The number of sustainable finance regulations and policy interventions is accelerating. In parts caused by the role that sustainable finance plays in delivering on the policy objectives under the European green deal and the European Union’s international commitments on climate and sustainability. And on the other hand, driven by retail investors demanding more sustainable investment products and wanting to know more about how companies are operating before investing their money.
All of this is putting pressure on investors to meet market and regulatory demands with the global ESG reporting market expected to grow at a CAGR of 17% to reach $16 billion by 2027.
This environment is creating headaches for many asset and wealth managers as they make sense of the ESG data available to:
For a single company, this may already entail more than 40 data points. Now add the additional layer of industry data and combine this to understand how a company fares against the competition. No wonder many asset and wealth managers are at a loss of how to interpret and use the data, while trying to keep up with the changing regulation.
That’s where Datia comes in. The platform is built to become the one-stop-shop for all sustainability work. It contains three modules to cover the ESG needs of investors:
The target group addressed by Datia are asset managers, wealth managers and investing platforms, the latter via an API-first approach. Such investing platforms, i.e. online brokers or neo banks, use Datia to offer information about company scores in terms of ESG (e.g. carbon footprint, board gender diversity) to their respective customers (private retail investors). In a later stage, Datia also aims to target corporates to collect ESG data and to make them available to investors.
Juan Manuel Serruya, an early employee at Spotify, and Manne Larsson, formerly at EQT Ventures and InsiderLog (a Market Abuse Regulation SaaS solution that was acquired by Euronext in 2016), met in Buenos Aires years ago. In 2019, after years of being simply friends that discussed the role of sustainable finance in creating a better world, Juan asked Manne to join him as COO of Datia.
As a thesis-driven VC we always look for investments that fit a narrative that we believe in. In each fund we have a number of active theses and we look for investments that fit into them. Lately, we have become increasingly interested in Climate, Sustainability and Inclusion as a thesis and we are actively looking for digital platforms that tackle these problems. Within this context, we found that Datia fits very well into our strategy:
Team Datia, again welcome to the Nauta Family, we are excited to back you on this great journey!