Climate Alpha, a Singapore-based startup, has developed an AI-driven platform that enables real estate owners and investors to assess the impact of climate change on their portfolios. Founded by a geography and globalization expert, the company recently secured $5M in seed funding spearheaded by Jungle Ventures.
- Invertor Line Up: Climate Alpha’s clients include major institutional investors such as Oaktree Capital and BentallGreenOak, as well as American homebuilder Lennar Corporation.
- Climate Alpha Functions: The platform leverages Geographic Information System (GIS) data, economic modeling, and machine learning algorithms to forecast the financial implications of climate change on properties. They aim to decode the intricate mix of geopolitics, demographics, climate change, geography, and economics, a concept known as “spatial finance”.
- Startup Origins: The founder, Dr. Parag Khanna, initially conceived the idea while researching for his book “Move: Where People are Going for a Better Future” and helping his parents find climate-resilient retirement locations.
- Previous Funding: The company won a grant from the Singaporean government during the pandemic to enhance its data science capabilities, and started collaborations with real estate developers like Lennar and Capitaland.
- Additional Offerings: The firm can provide extensive physical climate risk data for any worldwide location, considering variables such as the reliability of energy grids and economic momentum.
- Tried and Tested: Clients, like Oaktree Capital, utilize Climate Alpha’s risk and resilience scoring to pinpoint portfolio hotspots, report to investors, and identify high-growth investment regions.
- Funding Use: The new funding will be used to expand research and sales teams, as well as investment advisory services. The company is also venturing into the insurance industry and plans to establish a global fund focused on climate-resilient real estate.
A Series A funding round slated for the first half of 2024 will further bolster the company’s capabilities, enabling it to leverage data, build a global resilience index, and provide services to public investors.
