Renew Risk, a London-based clean-energy risk analytics Software-as-a-Service (SaaS) startup, has raised £1.7 million in seed funding to improve the financing, planning and insurance for renewable energy assets.
The funding round was led by strategic investor Insurtech Gateway with participation from ClimateTech fund One Planet Capital, the University of Surrey, and super angels Chris Adelsbach and Rahul Munjal.
With the globe seemingly transitioning towards green energy, the next 10 years is expected to witness exponential growth in the offshore wind industry, which is expected to be a $1 trillion industry by 2040.
However, this rapid growth requires a rather large institutional investment, yet the associated risks remain largely unmeasurable.
Offshore wind in particular is currently experiencing ‘Capacity Crunch’ as insurers are said to be finding these large assets too uncertain to insure, or price accurately.
Moreover, Renew Risk provides risk assessment solutions that allow re/insurers, insurance brokers and offshore wind farm developers to appropriately assess the risk of these billion dollar renewable energy assets being constructed within both deep sea and natural disaster prone regions.
The company’s first of its kind risk modelling software calculates the frequency and severity of financial losses due to natural disasters.
As a result, the product allows for re/insurers to accurately understand the risk and confidently provide capacity. By securing insurance for large offshore wind projects, institutional investors are more inclined to provide the necessary financing to expedite the transition to renewable energy.
Renew Risk already has models live with global re/insurers leading on supporting transition to green energy. The investment will enable the company to expand its customer base across the United States and Asia and develop next-generation products that cover additional asset classes.
Renew Risk’s CEO, Ashima Gupta, commented: “We are thrilled to have secured this significant funding round, led by Insurtech Gateway. This investment not only validates the tremendous potential of Renew Risk, but it also propels us forward on our mission to help improve the financial processes key for the transition to green energy. With this support, we are now poised to accelerate our product development, expand our market reach, and continue driving innovation in the industry. We are grateful to our esteemed consortium of investors for their trust and belief in our vision and we are excited about the transformative impact we will make in the insurance industry.”
Stephen Brittain, Co-Founder at Insurtech Gateway, said: “Renew Risk has effectively characterised the risks associated in planning and prioritising the most effective sites for offshore wind farms. With numerous government commitments to accelerate this sector, it is an exciting time to be part of the Renew Risk team. We are delighted to join them on this journey.”
Anthony Chant, Investment Director at OnePlanetCapital, added: “We are delighted to be supporting Renew Risk as they launch the product globally. We believe that this insurance product can really help in accelerating financialisation of wind farms globally. We are looking forward to supporting the business in their future growth.”
