A fintech that helps climate entrepreneurs access capital has raised some new funding of its own.
Somerville-based Raise Green announced the close of its $1.2 million seed round this morning. The startup is based out of Greentown Labs and wants to help solar projects and climate tech companies secure funding.
“Our potential partners come from all walks of life – venture capitalists, university students, entrepreneurs, and community leaders – and are committed to investing in clean energy projects that can move the needle on combating climate change,” said Franz Hochstrasser, CEO of Raise Green, in a statement.
Hochstrasser is a former Obama appointee on energy and climate for the White House, U.S. State Department, and United States Department of Agriculture. His co-founders include CIO Jackie Logan and COO Matt Moroney.
Raise Green provides entrepreneurs with step-by-step support to fund their new venture, according to its website, including flexible financing options, legal templates, marketing materials and investor management.
Startups who work with Raise Green pay a fee to appear on its digital marketplace with the terms of their intended raise. Investors can then search the marketplace for projects they want to help fund. Raise Green also charges a 7% fee upon completion of a raise.
“Raise Green makes sustainable investing possible for these folks by opening our investor marketplace to accredited, non-accredited, institutional, corporate and individual investors — and for as little as a $100 investment,” Hochstrasser said.
Raise Green said the marketplace is SEC and FINRA-registered and has helped entrepreneurs raise more than $5 million thus far. More than half of the companies listed on Raise Green are led by people of color or women, according to Raise Green.
It plans to use its seed funding to expand the marketplace and increase marketing efforts.
The Somerville company also announced a new partnership with Onyx Renewable Partners LP, a renewable energy company that develops contracted solar and energy storage projects. Raise Green and Onyx plan to work together on accessing incentives and tax credits in the Inflation Reduction Act for entrepreneurs. The act includes $370 billion in federal funding for climate solutions.
