Understory Secures $15M for Climate-Resilient Renewable Energy Solutions
Understory, a leading provider of insurance solutions against severe weather losses, has recently raised $15 million in a Series A funding round led by True Ventures and Prelude Ventures, along with other undisclosed investors. This significant investment will support the company’s expansion into the renewable energy sector, highlighting its innovative approach to weather risk mitigation.
Founded in 2014 by Alex Kubicek and Brian Down, Understory has revolutionized weather tracking and forecasting with its ground-level weather stations, known as Dots. These cutting-edge stations measure various weather parameters 125,000 times per second, providing detailed and accurate ground-level data. This technology has been instrumental in building comprehensive catastrophe models and developing parametric insurance offerings.
Understory’s global network of weather stations empowers sophisticated weather risk models by combining mutualized, optimized risk structures with precision weather technology. The company has already made a significant impact with its Dealers Open Lot insurance solution, which protects U.S. auto dealers from severe weather damage. This product has safeguarded dealer inventories across nearly 1,000 locations, reducing weather damage costs by over $65 million and overall claim trends by 60%.
With the new funding, Understory is set to launch a product tailored for the renewable energy sector. This innovative solution aims to help solar farms mitigate weather-related risks, such as hail damage. By predicting weather events up to 45 minutes in advance, the technology allows operators to take preemptive measures, significantly reducing repair costs.
Understory’s CEO, Alex Kubicek, emphasized the potential of their technology to transform the solar industry by minimizing severe weather impacts. The firm’s rapid growth, marked by a 500% year-on-year increase, underscores its crucial role in providing effective weather risk management solutions.
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