We advised Climate X, a London-based climate risk analytics provider, on its £4.1 million seed funding. CommerzVentures and A/O PropTech led the round joined by Deloitte LLP, Voyagers Climate Tech Fund, Blue Impact Ventures and angel investors including David Rowan (founding Editor-in-Chief at WIRED), Kat Borlongan (former Director at La French Tech), Renaud Visage (co-founder and former CTO at Eventbrite).
Climate change-related risks are expected to cost the global economy up to $23 trillion by 2050, disproportionately impacting marginalised communities. Data and tools to assess and subsequently manage climate change-related risks have been historically limited and failed to meet regulatory expectations.
Impelled by the market gap, Climate X empowers businesses and governments with location-specific risk ratings and loss estimates for extreme weather events linked to climate change through to the year 2100 under multiple warming scenarios. Its platform helps to mitigate and build resilience to the impacts of climate change-related risks. In an era of climate uncertainty, the company wants to enable stability and transparency with its ‘glass box’ approach.
Spectra is Climate X’s on-demand climate risk insights platform available through an online platform or API data feed. Firms can use either solution to quickly and securely access over one trillion data points. Spectra enables firms to meet regulatory compliance and build resiliency by incorporating climate change-related risks into business decisioning, pricing and investment strategies.
Climate X will use the new funding to service growing customer demand and expand the product offering.
Partner Ronald Graham said: "Climate X is leading the way in its use of technology to assess climate change and the impact it has on governments and businesses worldwide. We are proud to work with the most innovative companies across different sectors and we look forward to continuing our support of Climate X and its extraordinary and diverse team. I am excited to see what they achieve in their next phase."
Associate Rebecca Le Flufy commented: "It has been a pleasure working with the Climate X team to secure this seed funding. They are doing incredible work in unlocking the power of climate risk data and analytics to build a better future for our planet and we look forward to building on our relationship with them as they enter this new chapter".
Lukky Ahmed, co-founder and CEO at Climate X, added: “This investment accelerates our ability to scale climate risk analytics platform, 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 would like to thank the Taylor Wessing team for their fantastic support throughout this process. Their commercially focused and innovative guidance was crucial in achieving this result."
The client was introduced by Ronald Graham and the transaction was led by Philip Shepherd with support from partner Graham Hann, senior associate Kate Armstrong, associate Rebecca Le Flufy, and trainee Callum McLean.