Energizing London: Tech Startup Secures €62.9 Million Investment to Revolutionize Energy Transactions

tem Raises €62.9 Million in Series B Funding to Revolutionize Energy Transactions

tem, a London-based AI-native energy transactions scale-up, has announced the successful completion of an oversubscribed Series B funding round, raising €62.9 million ($75 million). The primary goal of this funding is to accelerate the UK and global expansion of tem’s AI-native infrastructure, positioning the company to become the “Stripe of energy”.

Leading the Series B round is Lightspeed Venture Partners, with additional participation from strategic investors such as Hitachi Ventures, Voyager Ventures, Schroders Capital, and Allianz. Existing investors, including AlbionVC, Atomico, and Revent, have also contributed to this round. Notably, Paul Murphy from Lightspeed Venture Partners will join tem’s board as part of this transaction.

CEO and co-founder of tem, Joe McDonald, expressed the company’s vision, stating, “Energy is the foundation of every industry worldwide, yet existing market structures are fundamentally flawed. tem is pioneering a new era in energy transactions by leveraging AI technology to create fairer, more transparent, and highly efficient processes. Similar to how fintech transformed banking, tem aims to revolutionize the energy sector by rebuilding core infrastructure and fostering innovation.”

Established in 2021 by energy experts Joe McDonald, Jason Stocks, Bartlomiej Szostek, and Ross Mackay, tem aims to address the inefficiencies and complexities plaguing the energy market. The company’s mission is to replace outdated transaction processes with a cutting-edge AI-native solution that enhances transparency and value for businesses and energy generation owners.

Key Technological Innovations

tem’s technology comprises two essential components: Rosso and RED. Rosso serves as an AI-powered transaction engine that eliminates hidden fees and inefficiencies in energy deals, ensuring seamless contract execution. RED, the neo-utility built on Rosso, provides businesses and brokers with a modern platform for energy transactions, offering a competitive price advantage.

In 2025 alone, tem facilitated over 2TWh of energy transactions, equivalent to powering an entire city like Liverpool for a year. The company’s innovative approach has led to significant cost savings for its 2,600+ customers in the UK, with potential bill reductions of up to 30%. Notable clients include Boohoo Group, Fever-Tree, Silverstone Circuit, and Newcastle United FC.

Global Expansion and Future Plans

With the fresh capital from the Series B funding, tem plans to expand internationally, focusing on markets like Texas and Australia. The company is currently in discussions with supply and demand customers in these regions who can benefit from tem’s advanced transaction infrastructure. Additionally, tem aims to extend its network effects to incumbents and neo-utilities, paving the way for further market disruption.

As tem continues to scale and innovate, it envisions setting a new global standard for energy transactions, empowering a diverse range of energy companies to thrive in a level playing field. By leveraging cutting-edge technology and a customer-centric approach, tem is poised to transform the energy landscape and drive sustainable growth in the sector.