Information on the Target

tem. is an innovative AI-driven platform designed to facilitate the direct purchase of renewable energy by UK businesses at costs lower than traditional fossil fuels. With its recent completion of a £10.5 million Series A funding round, led by prominent European venture capital firm Atomico and supported by returning investors AlbionVC and Revent, tem. has now secured a total funding of £13 million. This financing positions tem. at a pivotal moment in the UK energy market as the demand for sustainable energy sources intensifies.

The company operates an advanced proprietary algorithm that matches businesses with renewable energy generators in real-time, enabling significant savings on energy costs. In a landscape plagued by rising oil and gas prices, tem. is poised to reshape how businesses access energy, providing them with a sustainable and cost-effective alternative.

Industry Overview in the UK

The renewable energy sector in the UK has experienced substantial growth, with renewables accounting for approximately 40% of the electricity generation mix in 2023. This marks a significant increase from just 11% in 2014 and a mere 2.8% at the beginning of the millennium. Such advancements reflect the UK's commitment to transitioning toward a more sustainable energy grid, with the latest figures indicating that in Q1 2024, renewables generated over 50% of the country’s total electricity.

As the global economy strives to meet the ambitious climate targets set for 2050, the shift towards renewable energy is becoming more urgent. UK businesses have recently faced staggering electricity price hikes of 63% and gas price increases of 124% between Q3 2021 and Q3 2022, underscoring the critical need for affordable and reliable energy sources. The increasing instability and volatility of fossil fuel markets have catalyzed the search for greener alternatives.

Furthermore, the UK energy market has historically favored large corporations capable of negotiating complex Power Purchase Agreements (PPAs). However, the vast majority of UK businesses have remained reliant on the wholesale market, which is often inefficient and lacks transparency, costing businesses substantially due to intermediaries capturing around £1.65 billion each year in fees.

The Rationale Behind the Deal

This investment in tem. represents a strategic move to empower small and medium-sized enterprises (SMEs) with direct access to renewable energy. By leveraging advanced technology, tem. aims to democratize the energy market, allowing any UK business to benefit from lower energy costs while contributing to the clean energy transition. The funding will facilitate the expansion of tem.'s platform, enabling it to connect with more renewable energy generators and enhance its algorithm for better service delivery.

Information About the Investor

Atomico, a leading European venture capital firm, has made a name for itself by backing technology-driven innovations across various sectors. Known for its commitment to supporting companies that address pressing global challenges, Atomico's involvement in tem. aligns with its mission to promote sustainable alternatives and tackle the climate crisis. Previous investors, including AlbionVC and Revent, further bolster tem.'s credibility and growth potential, ensuring a robust network of support.

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In the context of the current energy market landscape, this investment in tem. appears to be a sound strategy. The company's unique approach to linking businesses directly with renewable energy providers serves an unaddressed gap in the market. With escalating energy prices and the pressing need for sustainable solutions, tem.’s services are not only timely but increasingly necessary.

The expected financial savings of up to 25% on energy costs for businesses could significantly relieve the burden of high energy bills faced by UK enterprises. Moreover, the transparency and traceability of 100% renewable energy sourcing will appeal to the growing consumer demand for sustainable business practices.

Furthermore, with the renewable energy sector poised to continually expand, tem.’s platform is well-positioned to capitalize on this growth. By removing middlemen and offering direct access to energy supply, tem. can create a more effective marketplace—addressing inefficiencies while enhancing user experience.

Overall, the combination of a pressing market need, the innovative solution provided by tem., and credible backing from renowned investors suggests that this deal could represent a significant opportunity for both growth and impact within the energy sector.

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