Premiere in Spain of Microsoft’s ‘mega-fund’ specialized in climate startups. Kibo companies. The company, which emerged as a ‘spin off’ of the Barcelona Supercomputing Center, specializes in assessing the risk and impact of natural disasters and climate change for companies.
The giant manufacturer of Windows and Office announced in 2020 the commitment to invest up to 1,000 million dollars through the Microsoft Climate Innovation Fund, a venture capital arm to support startups specialized in solutions to combat climate change. To date, it has carried out almost thirty investments. But it had not been released in Spain, where this segment of climate technology is less developed. Now, with this round of Mitiga, he lands as a significant partner, although not the main one.
In total, the Barcelona-based company has raised 13 million euros in what is known in slang as ‘Series A’, that is, the first major round in the initial phase beyond the seed phase. This is a relevant operation in full adjustment of the startup ecosystem, which has seen how capital injections have been slowed down in recent quarters.
Mitiga combines artificial intelligence and other technologies to try to prevent weather-related risks. It seeks to gain a significant foothold in the market for what is known as ‘climate score’, that is, those that provide tools to assess, measure and report on the risks associated with climate hazards and prevent these hazards from becoming natural disasters. “The ability to predict and manage the effects of climate-related hazards is a critical need to adapt to a changing ecosystem,” said Brandon Middaugh, senior director of the Microsoft Climate Innovation Fund.
Relaxation with Microsoft comes a long way. In 2020, the startup joined the Microsoft Startup Program and continued with the Founder’s and Fast-Track programs the following year. In 2022, it became one of the business partners of the American technology company. The origin of Mitiga is found in the Barcelona Supercomputing Center (BSC) and it emerges as a ‘spin off’ of it. Its founder is the environmental engineer Alejandro Marti. The BSC has been a shareholder of the company with a minority position and has also contributed technology for the analysis of the data and the creation of its simulation meteorological models.
More money for the sector
It has a team of 30 people on horseback between London and Barcelona. Among its clients are insurance companies such as AXA Climate, Willis Tower Watson, firms such as Suez, Indra or non-profit organizations such as the Red Cross. He assures that his plan involves tripling income in 2023. In 2021, the last year for which there are accounts in the Mercantile Registry, the company invoiced 174,000 euros in its Spanish company. Until now, the company had raised just over one million euros of capital in a ‘pre-seed’ round at the beginning of 2019 with Sabadell Venture Capital. Subsequently, he has been signing various grants.
The climate technology sector has aroused a lot of interest in the last year in the venture capital market and startups. Faced with the challenge of managing climate change, more companies have emerged and also more funds. In the Spanish case, several specialized management companies have been created such as Seaya Andromeda (up to 300 million euros) or Klima Energy Transition (with 200 million, led by Enagás and Alantra).