The Demex Group, the technology company behind a first-of-its-kind platform for analyzing, pricing, and transferring climate-linked risks at scale, announced it has raised $9 million in Series A funding led by financial services and technology investors, Anthemis Group, Blue Bear Capital, and QBE Ventures. IA Capital Group also participated in this round of funding; both Anthemis and IA Capital led Demex’s $4.2 million seed round announced a year ago.
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Extreme weather leads to dramatic fluctuations in revenue and operating costs for businesses around the world. These impacts are highly localized to each property, individualized for each occupant, and becoming more impactful than natural catastrophes. Climate resilience requires transcending the financial impact from catastrophic weather while also operating with everyday weather extremes.
“Property owners, tenants and managers are typically overlooked by the incumbent weather risk marketplace that focuses on agriculture and energy,” stated Ed Byrns, CEO and Founder of The Demex Group. “Recent advances in cloud computing, big data, and blockchain have enabled us to deliver a simple, secure, and scalable platform that’s specifically designed for climate resiliency. We are thrilled to both retain our investors from the seed round and excited to be joined by Blue Bear Capital and QBE Ventures on our journey creating global climate resilience.”
Weather-extremes are increasing, according to studies by the National Oceanic and Atmospheric Administration. “During the first 6 months of 2021, there were 8 separate billion-dollar weather and climate disasters across the United States. 2020 set a record with 22 events – shattering the previous record of 16 events that occurred in 2011 and again in 2017.” In fact, the number of extreme weather events increased from 29 between in the decade 1981-1990 to 105 between 2011-2020.
Anthemis’ Ruth Foxe Blader said, “The Demex Group is successfully designing products for clients seeking standalone protection for climate-linked financial exposures. Insurance carrier partners embed climate resiliency solutions into existing products, such as homeowners or business lines.