SG analytics firm bags $5m to forecast financial impact of climate change

Image credit: Unsplash

Singapore-based Climate Alpha is unlike most climate tech companies. Instead of focusing on greenhouse gas emissions, it offers AI-driven analytics for the real estate, asset management, and insurance industries to adapt to the impact of climate change and help drive sustainable investments.

To accelerate its global expansion, the company raised US$5 million in a seed funding round led by Jungle Ventures. The investment is part of the VC firm’s First Cheque program for second-time founders.

The round also saw the participation of other investors from Singapore and the US, including Thakral Corporation, Thunderbolt Ventures, Odyssey Capital, and Presidio Bay.

Parag Khanna, founder and CEO of Climate Alpha, said that the firm will also use the fresh funds to expand its research and sales teams, as well as invest in its investment advisory service.

“We plan to become a global platform for steering asset managers into resilient investments across public and private markets,” Khanna told Tech in Asia.

Founded in 2022, Climate Alpha uses a geographic information system – which stores, tracks, and analyzes geographic data – as well as economic modeling to forecast the financial impact of climate risks.

As for profitability, Khanna said the company has been “very efficient with our burn” while targeting “high-value clients” across a range of customer segments. Its clients primarily consist of institutional investors, including US-based Oaktree Capital and BentalGreenOak, as well as some of North America’s largest pension funds.

“Getting one or more funds off the ground powered by our software will bring us closer to profitability,” the CEO added.

Khanna added that the company is looking to raise a series A funding round in the first half of 2024.

See also: Indonesian startups work to clear the air as pollution grips capital city