Tuesday, June 25, 2024
HomeInternationalClimate tech startup Cloover raises $114M in seed funding 

Climate tech startup Cloover raises $114M in seed funding 

Cloover, a German climate tech startup, has raised $114 million in debt and equity. Chris Sacca’s Lowercarbon Capital led this seed funding round, as Cloover’s co-CEO revealed to Reuters.

Cloover’s technology helps smaller companies which handle most renewable installations in Europe access the entire value chain. These companies can now track customers, offer financing, and sell multiple products simultaneously.

For example, a regional installer can use Cloover’s system to offer solar panels, energy storage, heat pumps, and financing as a single package. They can also show customers the likely impact on their bills, including any green energy credits.

“Cloover’s vision is to dismantle the silos among key stakeholders essential for a successful energy transition. By streamlining the sales process for installers, managing payment flows and financing, procuring necessary materials, and overseeing energy production and consumption for individuals, Cloover connects the dots and leverages synergies across the entire value chain,” states Jodok Betschart, Co-Founder & -CEO of Cloover.

The founding team at the climate tech startup, Cloover comprises industry veterans, including Jodok Betschart (Co-CEO), an accomplished tech entrepreneur, Peder Broms (Co-CEO & CFO), boasting over a decade of experience in structured finance and Valentin Gönczy (CPO), a seasoned SaaS expert responsible for spearheading software development at Cloover.  With the fresh capital, Cloover will be doubling down on its installer software development and further strengthening its sales, payments, and financing offering.

“The prevailing industry attitude has been closely guarding innovations, allowing larger companies to refine their operations and growth. However, to achieve Net Zero there is no time to delay progress, as still more than 85% of all installations are done by SMB installers. Our software empowers this target group with the same sophisticated digital tools that the big players have long had, enabling them to compete on an equal footing and accelerate sustainable energy adoption,” states Valentin Gönczy, Co-Founder & CPO of Cloover, highlighting the strategic focus on levelling the playing field.

Peder Broms, Co-Founder & -CEO adds: “We are bringing renewables to the remaining mass market in Europe. That is 160 million households that are still left out. By combining our proprietary data on consumer energy savings with multiple capital sources, we are able to extend financing to households who previously could not access these assets. Moreover, through our platform Cloovers partners can unlock working capital for their operations which allows even faster deployment of renewables in Europe.

The climate tech startup has succeeded in Germany, Switzerland, Sweden, and the Netherlands. Now, they plan to expand into Spain, France, and Britain. Other investors in this round include 9900 Capital and QED.

Betschart added that the funds will help finance more installations, enhance the technology, grow the distribution network, and expand the team.

Smaller installers usually can’t offer financing themselves, so their clients rely on traditional bank loans, which may not fully understand the financial benefits of renewables. 

Cloover, however, provides financing from multiple capital sources and serves more clients than banks do, partly because it considers savings from lower bills in its detailed underwriting process, Betschart said.

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