London-based startup Climate X has completed a £4.1m seed funding round, led by CommerzVentures and A/O PropTech.
Climate X, which has created a platform showing the risk posed by extreme weather events to physical assets, will use the funding to expand its product offering and scale to meet growing customer demand.
The tech firm projects that climate change-related risks are expected to cost the global economy up to $23tn by 2050.
Climate X, using its AI-powered platform Spectra, provides location-specific risk ratings and loss estimate analytics for extreme weather events linked to climate change to clients.
“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,” said Lukky Ahmed, co-founder and CEO at Climate X.
“We’re excited to enter the next phase of our journey with some of the best strategic investment partners in the world”.
Paul Morgenthaler, managing partner at CommerzVentures, said: “Climate X is a standout example of a climate fintech that is solving a multi-trillion-dollar problem for the financial industry. This exceptional team has produced a vital tool capable of delivering insights into climate change-related risks for global real estate.”
Morgenthaler added that Climate X is “enabling decision-makers to place climate mitigation and resilience at the heart of their strategy”.
Also joining the round are Voyagers Climate Tech Fund, Blue Impact Ventures and Deloitte LLP. Angel investors including WIRED UK founding editor David Rowan, La French Tech director Kat Borlongan and co-founder of Eventbrite Renaud Visage also provided capital.
The pre-seed funding round of £1.1m in July 2021 was led by Pale Blue Dot. The latest round brings Climate X’s total funds raised to £5.2m.
Climate X is one of many startups tackling the multi-faceted problem of climate change.
It competes directly with climate intelligence firm Cervest, which has raised £26.2m to develop its EarthScan platform.
Last year, UK impact tech startups raised a total of £2bn – up 127% since 2018.