London-based energy scaleup company tem has secured a $75m (£55m) Series B investment round.
Founded in 2021, tem’s ambition is to replace what it considers to be the outdate, complex and opaque legacy system of pricing and trading energy.
Describing its products as the “first AI-native energy transaction infrastructure”, tem’s technology is comprised of two components.
First is Roso, an AI-powered transaction engine that executes contracts from end to end, matching energy suppliers with businesses directly. The other is RED, the customer-facing platform used by customers to track their energy usage and manage contracts.
“Energy underpins every industry in the world, and yet no one has succeeded in course-correcting the fundamentally flawed way the markets work,” said tem co-founder and chief executive officer Joe McDonald.
“For decades, the industry has tried to patch over the costly inefficiency of energy transactions with new utility brands and new promises. The real opportunity in energy looks a lot like what fintech did to banking: rebuild the core infrastructure, then let innovation explode on top of it.
“That’s exactly what tem is doing. We’re building the world’s first AI-native infrastructure for energy transactions – making them fairer, more transparent, and radically more efficient.”
Lightspeed Ventures led the funding round, with participation from Hitachi Ventures, Voyager Ventures, Schroders Capital, Allianz, AlbionVC, Atomico and Revent.
“tem is one of those rare companies whose insight, technology and roadmap to scale all line up. They’ve combined deep market expertise with exceptional engineering, and a plan with global potential from day one,” said Paul Murphy, partner at Lightspeed Venture Partners.
We back a small number of companies each year, and between the clear market demand and the economics of tem’s model, which align perfectly – tem stood out immediately. We’re excited to work alongside them as a true partner as they scale globally.”
