• Thu. May 19th, 2022

Climate tech company Arcadia is now a unicorn

ByLinda W. Smith

May 10, 2022
Only a few weeks later Upside down achieved unicorn status mark, DC Arcadia follows suit: The renewable energy technology company today announced a $200 million funding round, valuing the company at $1.45 billion.

The tour was led by JP Morgan Asset Managementit is Sustainable Growth Equity Team as part of a $2.5 trillion commitment to fund the low-carbon economy over the next decade. New investors Keyframe Capital, Large-scale group and Triangle Peak Partners joins existing partners Camber Creek, CJD Collective, Global Tiger Management, Wellington Management, Salesforce Companies and Levy funds to participate in the tour.

The company intends to use the funds to expand its Arc platform for energy and utility data. Kate HenningsenCOO and co-founder of Arcadia, said this funding and momentum from Arcadia is the latest initiative to fuel the zero-carbon economy, which she says is crucial to solving climate change issues.

“I started seven years ago now on this journey and [the industry] wasn’t like this a few years ago,” Henningsen said Technically. “Having this kind of capital, this recognition definitely shows that we are in a new era – which we need to be in a new era because we have a very big problem to solve.”

Arcadia COO Kate Henningsen. (Courtesy picture)

To date, the company has raised $385 million. This new investment gives it the ability to tackle a global problem with speed and urgency, Henningsen said. With that in mind, Arcadia plans to focus on building its software platform. Arc provides data from utilities across the country, as well as information on data and renewable energy sources.

In addition to these developments, the company will invest in sales and marketing resources and hire R&D software engineers to continue developing the platform. Henningsen, while not sure exactly how many positions would be added, expects hundreds of new hires over the next few years, about 50% of them in the DC area. Making renewable and clean energy more tech-friendly, she believes, is a game-changer.

“Having an energy software company ready to unleash a force that we’ve seen working in fintech, healthcare and [insurance] tech — meaning data and digitization — I think this is a big moment for this sector,” Henningsen said.

Arcadia also plans to use this new investment to expand its coverage to commercial utility data. The new funding also follows a strong period of growth for the renewable energy technology company; Henningsen said Arcadia grew revenue 155% year-over-year. Its Arc platform has also passed the milestone of 700 megawatts of energy managed. And last fall, the company managed to raise $100 million in September before acquiring Colorado. iSolar in November. According to its website, companies as varied as Ford, Airbnb and Goldman Sachs have partnered with Arcadia.

Henningsen attributes this growth to the company’s position at the intersection of sustainability and software, which she says are two of the biggest trends of the decade. She hopes to see even more growth in the climate tech ecosystem.

“I can’t wait to see what people can do with it, because we currently have about 100 companies using it,” Henningsen said. “And there’s going to be a thousand new things that I have no idea what people are going to do, and I think that’s how we start to solve the problem that we have. It’s really an effort on the bridge.

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