London-headquartered climate risk analytics provider Climate X has recently secured $5.4 million in an oversubscribed seed funding round to tackle climate change.
The investment was led by CommerzVentures, which raised £300 million to invest in climate tech startups and A/O PropTech alongside participation from Voyagers Climate Tech Fund, Blue Impact Ventures, Deloitte LLP and angel investors including David Rowan (founding Editor-in-Chief at WIRED), Kat Borlongan (former Director at La French Tech) and Renaud Visage (co-founder and former CTO at Eventbrite).
Prior to this, Climate X picked up $1.5 million in pre-seed funding in July 2021. The round was led by Pale Blue Dot funding in their seed round – alongside Blue Wire Capital, Jennifer Cheng-Lo’s NewChic Capital, A100x and several others. With the current round, the total funding secured by Climate X accounts for $6.9 million.
From London to global
Climate X will use the new funds to service growing customer demand and expand the product offering. “This investment accelerates our ability to scale our climate risk analytics solution, Spectra, and to smoothen the path for governments and businesses worldwide to use data they understand and trust to make multi-generational climate-informed decisions. We’re excited to enter the next phase of our journey with some of the best strategic investment partners in the world,” said Lukky Ahmed, co-founder and CEO at Climate X.
Paul Morgenthaler, Managing Partner at CommerzVentures added: “Climate X is a standout example of a Climate FinTech that is solving a multi-trillion-dollar problem for the financial industry. We look forward to working with the team as they accelerate their platform’s expansion internationally.”
Gregory Dewerpe, founder of A/O PropTech, said: “Climate X’s platform gives a range of actors across many industries the tools they need to understand, assess, predict and report the exposure of their physical assets to ecological challenges – and in doing so enable them to start planning and investing accordingly to reduce future losses and pain.”
Tools to manage climate change risks
As per reports, climate change-related risks are expected to cost the global economy up to $23 trillion by 2050. There is a necessity for advanced data and tools to assess and manage climate change-related risks. Previously, these were limited and struggled to meet the increasingly sophisticated needs of customers and regulators.
Founded by Lukky Ahmed and Kamil Kluza in 2020, Climate X addresses this gap by providing advanced tools necessary to meet these statutory requirements. It delivers location-specific risk ratings and loss estimates for extreme weather events linked to climate change through to the year 2100, under multiple warming scenarios.
Offers on-demand platform
Spectra, the on-demand climate risk data analytics platform offered by Climate X is available through an online platform or API data feed. The platform acts as a vertically integrated solution that covers a comprehensive range of hazard types. As per the company, the platform achieves up to 95% performance accuracy.
The company wants to enable stability and transparency with its ‘glass box’ approach. Firms can use either solution to quickly and securely access over one trillion data points tied to millions of locations anywhere in the UK.
Spectra enables firms to meet regulatory compliance and build resiliency by incorporating climate change-related risks into business decisions, pricing and investment strategies.
Louise Brett, Head of FinTech and Financial Services Innovation, Deloitte North and South Europe, commented: “At Deloitte Ventures, we work with the UK’s most visionary start-ups, to harness the potential of emerging technology and innovation in a way that helps to solve some of the biggest challenges our clients are facing today. Climate change is an intimidating challenge facing every business, but by collaborating with Climate X we will equip our clients with vital data which will inform their Net Zero strategies and accelerate their response to climate-related risks.”
