LandGate Raises $10M in Series B Funding Round Led By NextEra Energy Resources
LandGate Corp., the United States' leading marketplace and data provider for commercial land and its resources including solar, wind, minerals, water, and carbon offsets, today announced it has raised $10 million in Series B funding.
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The round was led by a subsidiary of NextEra Energy Resources, LLC, a leading clean energy company and the world's largest generator of renewable energy from wind and sun. The Series B round also included participation from private equity firm Kimmeridge. Landgate will utilize the capital infusion to enhance its product suite, with a particular focus on solutions catering to financial institutions. The capital will also enable LandGate to expand its marketing and sales efforts to increase market penetration across the country.
Participants in the U.S.' $4-trillion per year energy and environmental land resources market are plagued by a lack of accurate data solutions and market intelligence for land, which prevents stakeholders across the market from making informed decisions about land transactions.
With LandGate, customers ranging from global financial firms looking to optimize their clean energy holdings to landowners across the U.S. have the ability to determine comparative values of the full spectrum of resources and potential royalties for every parcel of land in the United States.
"As our country continues to invest in cleaner forms of energy, it is critical to identify the right sites to host projects," said Rebecca Kujawa, President and CEO of NextEra Energy Resources. "The LandGate platform provides its customers with an additional tool to help identify suitable land for projects while providing landowners with a new platform to help market their property."
To meet the systemic shift in market expectations towards clean energy, LandGate is launching a new dashboard, targeted specifically at the capital markets user base. The interface will generate metrics for investors who are assessing the projected performance of large energy and resource asset portfolios and present them with projected production, cash flow, and company net asset valuations (NAVs) updated live with new farm activity o electricity pricing data. Traders and insurers can compare the future quarterly cash flows of renewable energy operators and risk them to weather catastrophes.
In addition to helping accurately value and assess different land uses in seconds, the LandGate platform also connects developers and investors to "ready-to-close" leads on its online marketplace for all land-related transactions, including land sales, renewable royalty sales, carbon offsets, and land resource leases.
"In the coming years there will be enormous demand for land to help achieve the world's collective climate goals", said Alex Inkster, Partner at Kimmeridge. "The LandGate platform is a truly differentiated screening tool and marketplace that connects landowners with renewable energy and carbon offset developers, increasing transparency and efficiency for all parties while contributing to a Net Zero future."
As of the first quarter of 2022, LandGate had already facilitated over $300 million of land resource deals nationwide across transactions for the development of solar, wind, carbon, minerals, mining, electric vehicle (EV) charging and water resources. By the end of the year, over 60% of all the land real estate agents in the U.S. will be using LandGate's land analytics, which help them transact on energy and environmental deals and access corporate buyers.
This, combined with LandGate's partnership with the Realtors Land Institute, and the thousands of individual landowners accessing the platform, enhances the network effect of the marketplace for land and its resources. Customers include NextEra, renewable energy developer Lightsource BP; renewable energy and sustainable infrastructure-focused real estate investment trust Hannon Armstrong; and Kimmeridge.
"LandGate is at the intersection of climate tech and proptech," said LandGate CEO and Co-Founder Yoann Hispa. "This investment from NextEra Energy Resources and Kimmeridge opens a new relationship for the wider deployment of our technology and disruptive business model, building upon our initial momentum from a Series A investment from Rice Investment Group. We are now poised to continue our mission to empower every capital allocator, developer, real estate agent, and landowner to properly value and exchange land resources, bringing greater efficiency to this critical market."
With the completion of this funding round, LandGate has raised a total of $19 million in debt and equity.
LandGate has a differentiated product advantage built on the digitization of land resource data and valuations. With LandGate's data solutions and web applications, developers, investors, and real estate professionals can (1) run economic engineering studies in minutes, (2) access land leads and MLS listings, and (3) manage their leads in a land CRM web app connecting their team and Salesforce.
LandGate was founded in 2016 in Denver, Colorado. In 2019, LandGate received Series A funding from Rice Investment Group, a widely-respected energy technology investor. In 2020, LandGate partnered with the Realtors Land Institute (RLI), the American Association of Professional Landmen (AAPL), and the Texas Engineering Executive Education (TxEEE) from the University of Texas at Austin. In 2022, LandGate received a Series B funding led by Nextera Energy Resources. For more information visit www.landgate.com.