Renewables-focused Energetic Insurance snares $7m Series A

November 10, 2021

Energetic Insurance has pulled in $7m from a Series A funding round headed by Schneider Electric Ventures.

The round also saw participation from MCJ Collective, Atlantic Global Risk, Congruent Ventures, MUUS Asset Management, Powerhouse Ventures, Clean Energy Venture Group and SCOR P&C Ventures. This recent funding builds on Energetic’s $2.5m seed raise back in 2019.

Launched in 2016, Energetic is a MGU that looks to develop new risk management products to unlock growth in the renewable energy sector. The company markets EneRate Credit Cover, that unlocks solar project financing for the unrated and below investment grade counterparties by covering payment default risk.

Energetic Insurance CEO and co-founder James Bowen said, â€œIâ€™m honoured to be able to work every day with such a dedicated and committed team at Energetic. Because of their relentless efforts, we are poised to harness this additional capital and investor support to grow and streamline operations as we expand our current offering and enter new markets. Thanks to the enthusiastic support of our existing and new investors, Energetic Insurance is becoming a driving force behind the clean energy transition.â€

MS&AD Ventures partner Tiffine Wang added, â€œAt MS&AD Ventures, we care about creating a better future for the world. The clean energy transition is an important global topic and we see climate change as a critical risk management issue. Energetic Insuranceâ€™s products will be a key enabler for the financing and development of this transition. We have been tracking the team for some time and their deep market expertise and analytical prowess has yielded a robust, data-driven approach to underwriting credit risk for the energy sector.

â€œThe growing demand for their EneRate Credit Cover validates the need for better financing options for solar and next generation energy. We are excited to support the team at Energetic as they scale their impact on climate and energy finance.â€

While there has been a considerable move by a range of organisations and companies globally to integrate sustainability into their practices, there is a growing worry that the growing power of ESG may be about to stall. Recently, the Bank of International Settlements warned of the escalating risk of a price bubble in environmentally-friendly-focused asset markets.