Climate X Raises $18 Million In Series A To Fuel Growth In North America

Climate X Raises $18 Million In Series A To Fuel Growth In North America

Climate X announced on the 26^th June that it had successfully raised $18 million in a Series A funding round led by Google Ventures. The London-based climate risk software firm plans to use the funding to expand operations geographically – particularly in North America, building on its recently opened New York office.

Climate X primarily targets banks, insurers and real estate, serving organizations such as CBRE, Legal & General and Virgin Money. The vendor’s products, Spectra and Adapt, focus on asset-level physical risk analysis and ROI planning for climate adaptation. They are designed to incorporate climate risk analytics into financial assessments, enabling clients to capitalize on opportunities to drive top- and bottom-line growth. Climate X’s CEO and Co-Founder, Lukky Ahmed, comes from a background in banking at HSBC and Lloyds and has experience with stress-testing. By highlighting how clients can use the platform to enhance business value, and drawing on prior expertise in the financial sector, Climate X has been able to gain both funding and customers.

As the slowing of the VC market has impacted climate tech over the last two years, the climate risk software market has faced major challenges. In May this year, Gro Intelligence, an agricultural insights platform that incorporated climate risk analytics, closed down; the same time last year, climate risk software firm Cervest collapsed. However, Mitiga Solutions, which purchased Cervest’s tech, has also been raising capital. In early June, the firm raised €8 million in a Series A extension and plans to use the capital to accelerate its growth in Europe. The vendor is looking to capitalize on the growing demand generated by the CSRD and it is well-positioned to do so, with headquarters in Barcelona.

This recent uptake in investment activity may signal the end of the market downturn. Climate risk software vendors that are able to demonstrate value by responding to the specific use cases required by customers may be able to capitalize on this positive trend.

To explore further how the climate risk software market will develop, read Verdantix Market Size And Forecast: Climate Risk Software 2022-2028 (Global).