London-based tem., an AI-driven transactions platform that allows UK businesses to purchase energy directly from renewable generators at a lower cost than traditional fossil fuels, has raised £10.5 million in a Series A funding round led by European venture capital firm Atomico.
The round also included participation from existing investors AlbionVC and Revent, along with notable angel investors Holly and Sam Branson, and Wise executives Harsh Sinha (CTO) and Nilan Peiris (CPO). This new funding brings tem.’s total to £13 million, reinforcing its position at the forefront of the UK’s transition to sustainable energy. As part of the investment, Terese Hougaard, Partner at Atomico, will join tem.’s board.
Further, this investment will fuel the company’s mission to make renewable energy more affordable and accessible for UK businesses.
What problem is the startup solving?
The UK’s energy landscape has been dramatically reshaped in recent years, with soaring prices and a growing emphasis on sustainability. tem. is addressing these challenges by offering a more efficient and cost-effective way for businesses to procure renewable energy.
“Small and medium-sized businesses are critical in tackling climate change, and are desperate for energy they can trust after seeing their bills soar,” said Joe McDonald, tem. CEO and co-founder. “We built tem. so that any UK business can get affordable energy while powering the clean energy transition from their doorstep.”
How tem. works?
tem.’s proprietary algorithm connects businesses directly with renewable energy generators in real-time. By bypassing the traditional wholesale market, tem. can offer businesses significant savings on their energy bills.
“tem.’s platform is uniquely primed for this growth, connecting businesses directly with the burgeoning network of over 22,000 small, medium, and large renewable generators across the country,” said Atomico partner Terese Hougaard.
The UK’s renewable energy sector has experienced rapid growth in recent years, driven by government policies and technological advancements. With renewables accounting for a significant portion of the country’s electricity mix, the demand for affordable and sustainable energy sources is on the rise.
The benefits of tem.
Businesses that use tem. can enjoy several advantages, including:
Cost savings: tem. helps businesses reduce their energy costs by up to 25%.
Sustainability: By sourcing renewable energy, businesses can reduce their carbon footprint and contribute to a more sustainable future.
Transparency: tem. provides businesses with full transparency into their energy supply, allowing them to track the origin and impact of their electricity consumption.
Reliability: tem.’s platform ensures a stable and reliable energy supply, minimizing the risk of disruptions.
Among tem.’s customers is iconic British racing track Silverstone. Stephane Bazire, Head of Business Sustainability at Silverstone said, “working with tem, we are now paying less for fully traceable renewable energy, while putting more money back into the pockets of generators, hugely helping our business reduce its carbon footprint – which is a high priority for our company.”
The investment comes as the UK rapidly expands its renewable energy capacity, with renewables in 2023 constituting around 40% of the electricity mix, up from approximately 11% in 2014, and only 2.8% at the turn of the millennium. In Q1 2024, renewables reached 50.9% of total generation.
What do we think about the startup?
tem. was founded in 2021 by four former Limejump employees; Joe McDonald, Jason Stocks, Bartlomiej Szostek, and Ross Mackay, who saw first hand the inefficiencies and inflated costs of transacting through the wholesale market. With its innovative approach and strong leadership team, tem. is well-positioned to become a major player in the UK energy market.
