ClimaCell, the weather forecasting and intelligence service that is using a number of interesting new techniques to gather weather data, today announced that it has raised a $23 million Series C round co-led by new investor Pitango Growth and existing investor Square Peg Capital. With this new round, the Boston and TelAviv-based company's total funding now exceeds $100 million.
As ClimaCell co-founder and CEO Shimon Elkabetz told me, the round came together well after the worldwide COVID-19 lockdowns had started and the team never met with its new investors in person. Because the pandemic affected many of ClimaCell's customers in the travel industry, in recent months, the company did take some steps to reduce cost and expand its overall runway, but Elkabetz stressed that the company didn't need to raise this new round and that the investors approached the company.
"We took some aggressive but respectful actions around reducing our expenses and created a significant runway," Elkabetz explained. "We didn't really need to raise money now, but this opportunity came to us and we decided to take it, because it gives us a significant opportunity to invest in strategic things."
Image Credits: ClimaCell
Given the changing business climate, the company did double down on its efforts to brand its service as an intelligence platform that helps businesses make smart decisions about the operations, even if they are not meteorologists. In practice, this means a stronger focus on its Insights service, which helps operators in various industries make smart decisions based on the company's forecasts. With this, ClimaCell can help a construction company ensure that a worksite is safe when a storm is coming and when it should shut down its crane operations because of wind, for example, or when a logistics company should expect slowdowns because of heavy rains. Instead of just giving its users a weather forecast, the company's tools provide actionable suggestions instead.
“65% of the world’s GDP is being impacted by weather events. ClimaCell is the only SaaS company that enables actionable items ahead of weather events rather than reacting to them and their implications and ramifications,” said Aaron Mankovski, managing general partner at Pitango Growth, in today's announcement. "The opportunities coming to ClimaCell across industries including supply chain and logistics, railroads, trucking, shipping, on-demand, energy, insurance, and more represent a complete upending of the existing competitive landscape and is a testament to being laser-focused on customer value.”
Image Credits: ClimaCell
Elkabetz noted that the company plans to use the new funding to expand both its go-to-market efforts and to focus on the fundamental R&D that makes its platform work. He wasn't quite ready to share what those R&D efforts will look like, but he expects to be able to announce these new capabilities "soon."
The company also expects to launch some updates to its consumer mobile app soon. While the consumer app may not be ClimaCell's main focus, it uses the same technology in the back end, including a version of Insights for leisure activities, for example. For Elkabetz, the consumer app helps spread the ClimaCell brand but he also expects that it can become a real business in its own right.