Sustainability data platform Tracera announced that it has raised $12 million in a Series A funding round, with proceeds aimed at scaling its AI-powered platform to help businesses comply with ESG reporting requirements.

Established in 2022, New York-based Tracera – formerly called ESG Flo – provides solutions aimed at enabling companies to streamline sustainability reporting and reduce costs. The company’s AI-powered platform automates collection, verification, and auditing of sustainability data from diverse sources, enabling users to comply with sustainability reporting regulations and substantiate sustainability claims with traceable data.

The new financing follows the launch by Tracera of a new Scope 3 emissions data tool, which automatically gathers and analyzes supplier-specific emissions information to provide businesses with an understanding of their overall environmental impact and how to reduce it.

Tracera CEO Patrick Obeid said:

“At Tracera, we’re revolutionizing the way businesses see growth—proving that sustainable growth and financial success are one and the same. The untapped power of sustainability data has the potential to transform businesses, uncover inefficiencies, drive competitive edge, and position you to lead in an increasingly fierce market.”

The round was led by venture capital investors Foundry, with participation from Rho Ignition, Tola Capital, and Contour Venture Partners. As part of this funding round, Tracera is adding Foundry Partner Seth Levine to its board. He will collaborate with managing partner of Rho Capital Partners, Habib Kairouz, Tola Capital Venture partner Karolin Beck, and Confience CEO Patrick Quinlan, Tracera said.

Levine said:

“With regulatory pressures mounting and scrutiny of sustainability claims intensifying, the demand for accurate, traceable data is surging. Tracera’s comprehensive, AI-driven solution is perfectly suited to meet these challenges, turning sustainability reporting into a strategic advantage rather than a compliance headache.”