London-based energy scaleup tem has secured $75 million in an oversubscribed Series B funding round led by Lightspeed Venture Partners. This latest investment brings the company’s total funding to $94 million and comes as tem exceeds $300 million in annualized gross transaction value, as Vestbee was informed.
- Founded in 2021 by Joe McDonald, Jason Stocks, Bartlomiej Szostek, and Ross Mackay, tem is an energy technology company that develops AI-powered infrastructure for energy transactions. The firm’s platform, called Rosso, automates the process of buying, selling, and managing energy, removing hidden fees and inefficiencies commonly built into wholesale energy markets.
- The startup operates RED™, a utility interface that allows businesses and brokers to access energy directly, providing real-time visibility into costs and enabling more predictable pricing.
- The system works by using AI to analyze market data, execute transactions end-to-end, and maintain a stable price floor, while ensuring that a larger portion of payments goes directly to energy generators rather than intermediaries.
Details of the deal
- The $75 million Series B round was led by Lightspeed Venture Partners and supported by Hitachi Ventures, Voyager Ventures, Schroders Capital, Allianz, along with existing investors AlbionVC, Atomico, and Revent.
“tem is one of those rare companies whose insight, technology and roadmap to scale all line up. 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," claims Paul Murphy, Partner at Lightspeed Venture Partners.
- tem will use the fresh capital to expand its AI-powered energy platform internationally, starting with Texas and Australia, scale its infrastructure to handle more transactions, and improve its technology to deliver more efficient and transparent energy deals.
"We’re building the world’s first AI-native infrastructure for energy transactions - making them fairer, more transparent, and radically more efficient. But more importantly, we’re unlocking the next generation of energy companies. This funding allows us to set a new global standard for how energy is transacted - whether that’s powering a warehouse in Manchester, a neo-utility in Texas, or one of the largest utilities in the world," Joe McDonald, CEO and co-founder of tem, commented in a press release.
