Understory, a provider of insurance solutions against severe weather losses, has secured $15m in a Series A funding round.
This investment will aid in the development of a new product aimed at the renewable energy sector, according to InsurTech Insights.
The funding round was led by undisclosed investors, signifying strong confidence in Understory’s innovative approach to weather risk mitigation.
The capital injection will be used to launch a product specifically designed for the renewable energy industry.
The technology aims to help solar farms reduce hail repair costs by 50% by predicting weather events up to 45 minutes in advance. This allows operators to take preemptive measures to minimise damage, such as stowing or moving solar panels.
Founded in 2014 by Alex Kubicek and Brian Down, Understory initially focused on deploying a network of ground-level weather stations to improve real-time weather tracking and forecasting.
The company’s cutting-edge weather stations, known as Dots, measure wind, rain, hail, temperature, pressure, and humidity 125,000 times per second.
This technology provides detailed ground-level weather data, which has enabled the company to expand its network globally and build comprehensive catastrophe models. Leveraging this data, Understory has developed its own parametric insurance offerings.
Understory’s CEO Alex Kubicek emphasised the impact of their technology, stating, “The solar industry is currently facing significant challenges due to severe weather, our technology can mitigate these risks, turning potential multimillion-dollar losses into substantially smaller financial impacts.”
The firm has experienced significant growth, reporting a 500% year-on-year increase leading up to its recent funding round. Understory’s success underscores its crucial role in providing effective weather risk management solutions.
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