Investors are putting money into businesses that track climate change.

Durham, North Carolina-based The Climate Service (TCS) announced Tuesday the successful completion of its $3.825m Series A investment round. The startup focuses on analytics and climate risk.

Persei Venture LLC led the investment round with participation from existing investors and new investors. The latter included the Association of International Certified Professional Accountants (AICPA), and Synovia Capital.

The Climate Service (TCS) and climate change risk

The company’s Climanomics® risk analytics system is a web-based software that quantifies climate risk, including both transition risk and physical risk, in financial terms that are aligned with the Task Force on Climate-Related Disclosures (TCFD).

It empowers customers with knowledge of what their risks are, where they are, and what trends they can anticipate over decades and across multiple scenarios so that they can manage these risks strategically.

TCS was a 2019 winner at the NC Tech Awards. It also made it to AICPA’s 2020 Startup Accelerator.

Over the past year, TCS tripled its team size and boosted its customer base. Customers now include the world’s largest financial institutions, Fortune 500 companies, and the US Federal Government.

Use of funds

TCS will use the proceeds of Series A to expand the scope of its Climanomics to include new hazards, climate scenarios, and asset classes, and thereby satisfy “increased demand.”

“Investors, markets, and regulators increasingly require businesses to measure their exposure to climate changed risk,” said David L. Jadow of Persei Venture. “As a result, we designed this fundraising round to enable TCS to respond to the demands of industries under pressure to understand, quantify, and manage climate risk.”

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