Climate fintech startup Cloover raises $114M in seed funding to support transition to renewable energy

While all eyes have been on generative AI, investors continue to pour billions into climate technology startups. The latest startup to ride the funding wave is Berling, Germany-based climate fintech startup Cloover, which recently secured $114 million in seed funding.

The round, which includes debt and equity, was led by Chris Sacca’s Lowercarbon Capital, according to a report from Reuters, citing Cloover’s co-chief executive. Cloover will use the fresh capital infusion to help finance more installations, improve the technology, increase the distribution network, and invest in building out the team.

Cloover was founded in 2022 by a team of four entrepreneurs including Peder Broms, Co-CEO & CFO; Jodok Betschart, Co-CEO; Tony Kirmo, CRO; and Valentin Gönzcy, CPO. The four founders have more than 40 years of combined experience in finance and tech, have built two successful software and fintech startups, and have dedicated their lives to making renewable energy more accessible and affordable.

“Cloover’s vision is to dismantle the silos among key stakeholders essential for a successful energy transition. By streamlining the sales process for installers, managing payment flows and financing, procuring necessary materials, and overseeing energy production and consumption for individuals, Cloover connects the dots and leverages synergies across the entire value chain,” Betschart said.

Cloover partners with renewable energy professionals to make sustainable home upgrades simple and affordable with flexible payment options. Its technology enables smaller companies to handle the bulk of renewables installation in Europe, and all other parts of the value chain, helping them track customers, offer financing, and sell several products at once.

For example, a regional installer can use the Cloover system to offer customers solar panels, energy storage, a heat pump, and financing all in one package and illustrate the likely effect on their bills, factoring in any green energy credits.

“The mass market customer would like to have a worry-free solution where they just pay less per month than what they paid before and with what we offer now any smaller installer can offer that package,” Betschart told Reuters.

Cloover assists smaller installers who have often not been able to offer finance themselves. Their clients have had to rely on loans from traditional banks that may not fully understand the financial benefit of installing renewables, Betschart said.

In addition to providing finance from multiple capital sources, Cloover also offers funding to a larger group of clients than banks would, in part because it takes into account the savings from cheaper bills in a more granular underwriting process, he said.

After initial success in Germany, Switzerland, Sweden, and the Netherlands, the company now aims to expand into markets such as Spain, France, and Britain, Betschart said. Other investors in the round include 9900 Capital and QED.