London-based energy technology company Tem has raised $75 million in fresh funding as it looks to expand internationally and accelerate the rollout of its AI-driven platform designed to cut business electricity bills by up to 30 per cent.
The funding round was led by Lightspeed Venture Partners and is understood to value the four-year-old company at around $300 million. Tem plans to use the capital to further develop its technology and scale its operations in the US.
Founded in 2021, Tem has built a platform it calls “Red”, described by the company as a neo-utility that uses artificial intelligence to match electricity supply and demand directly, bypassing the wholesale market and its multiple intermediaries.
Joe McDonald, Tem’s co-founder and chief executive, said the aim was to remove what he described as unnecessary “middle men” from the energy system. “We calculate that about $1 trillion is taken out every year in transaction fees by ‘Big Energy’,” he said. “Our mission is to take that cost of transaction down to zero.”
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