tem Raises USD 75 Million to Scale AI Energy Transaction Infrastructure

UK-based energy tech startup tem has raised USD 75 million in a Series B funding round led by Lightspeed, with proceeds aimed at scaling its AI software for buying and selling renewable electricity directly between companies and generators. The company has already facilitated more than 2 TWh of energy transactions, surpassing USD 300 million in annualised gross transaction value.

tem develops AI software that helps companies buy renewable clean power directly from generators, reducing reliance on energy wholesalers and brokers and transforming how electricity is bought and sold. The company is positioning itself as transaction infrastructure for electricity markets rather than a traditional energy company. Strategic follow-on investors in the Series B round include Hitachi Ventures, Allianz, and Schroders, alongside existing investors Atomico, AlbionVC, and Revent. tem previously raised USD 14 million in its Series A in July 2025 led by Atomico.

The company's AI platform addresses inefficiencies in power procurement by enabling direct contracting between buyers and generators, bypassing traditional intermediaries. This model reduces transaction costs and increases price transparency for corporate energy buyers, which is particularly relevant as companies face growing pressure to demonstrate procurement of clean power under regulatory and investor sustainability requirements. The platform has facilitated transactions covering millions of megawatt-hours across multiple markets.

tem's CEO Joe McDonald said the company is building financial and data infrastructure for energy markets, fixing the data and financial plumbing that sets the price of electricity. The USD 75 million Series B represents a significant step up from the Series A and reflects strong investor appetite for AI-enabled energy market infrastructure. The strategic participation of Allianz and Schroders, both major institutional investors in sustainable finance, underscores the relevance of tem's platform to the broader clean energy transition.

Key figure — USD 300 million annualised transaction value