ClimateAi, a pioneer in applying machine learning to climate risk forecasting to build end-to-end climate resilience, has closed an oversubscribed $22 million Series B funding round. The round was led by Four Rivers Group, with participation from Neotribe's Ignite fund and Yaletown Partners. Existing investors, Radical Ventures, Neotribe Seed Fund, and Academy Investor Network, also participated.
Together with their past oversubscribed Series A Round, ClimateAi raised $38 million in funding to date. The company has impressively grown over the past 18 months, with five times more annual revenue and quadrupled customer levels, including Dole, Driscoll's, and Nuveen Natural Capital.
As the global market size for both artificial intelligence and climate solutions expands, ClimateAi's climate resilience platform helps companies and governments minimize near- and long-term climate risk exposure - from operations, supply chain, risk management, asset due diligence, demand planning, sales and marketing, and sustainability and TCFD reporting.
Funds will be used to expand into new territories, including India and Japan, as well as low-income countries in the Global South, where climate adaptation is urgently needed. In addition, the funding will enable the company to expand its team and continue its tradition of artificial intelligence breakthroughs at a time when such actionable innovations are desperately needed.
Climate change is rapidly becoming a more significant challenge — its effects include altered weather systems, extreme heat waves, and flooding that have caused extensive damage to agriculture and infrastructure and impacted supply chains. For instance, the EU has been particularly hard hit by droughts in Spain's farmlands, leading to food scarcity and prices rising across Europe, undermining the food security of its affluent area. According to the recent UN IPCC report from March, "Time is running out for us to ensure a livable and sustainable future for all."
The rapid expansion of new technologies, such as artificial intelligence, is helping businesses, communities, and governments transition to a sustainable future that protects lives and livelihoods.
ClimateAi's platform leverages AI to produce valuable, accurate insights about weather, climate, and water for businesses and stakeholders. Its machine learning capabilities and data from multiple sources make it possible to determine where to expand crops or activities appropriately, analyze potential climate & water-related risks in investment portfolios, help manage resources and anticipate threats caused by pests or illnesses. The company serves a wide array of industries, including processors & packers, seed & chemicals inputs suppliers, financial institutions and manufacturers, and governmental officials.
Himanshu Gupta, CEO and Co-Founder, said of the funding news: "As the IPCC's report released last month highlights, we need swift and drastic action to tackle climate change — but even with it, we are locked into at least twenty years of climate change's impacts, so adaptation measures are urgent and necessary to prevent the worst impacts. Our platform creates unparalleled climate intelligence, reducing long-term forecast uncertainty by average 85% relative to best-available alternatives, generating significant alpha to incentivize companies to act now on climate change."
The IPCC's recent report ranks India as one of the countries most at risk of climate change-related damage, such as extreme weather events that can impact infrastructure and food security. In response, Indian Prime Minister Narendra Modi has proposed using climate-resilient millet to lead the way in adaptation. Japan is also taking the initiative; with their resource-poor island nation status, they are harnessing climate resilience to bolster their renowned manufacturing facilities and energy systems. This opportunity could give them a competitive edge in the long run.
ClimateAi's mission to become the world's go-to forecasting and mitigation platform is more valuable and vital than ever as there is a renewed focus on international food security and protecting against water risks.
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