Cloover, a Berlin-based climate fintech company, secured $114 million in a seed funding round led by Lowercarbon Capital, founded by venture capitalist Chris Sacca, and with participation from existing investors 9900 Capital and QED.
The company is strategically positioning itself to serve the expanding European market for residential renewable energy, which has seen a 20% growth in the decade. This growth is attributed to rising energy costs, increased electrification, and heightened consumer awareness.
Cloover is a financial and payment provider specializing in the renewable energy sector. Cloover collaborates with companies that focus on solar panels, heat pumps, and other sustainable technologies and enables them to offer customized financing solutions to their customers alongside traditional lump-sum payments. The company’s platform also helps partners optimize and streamline their administrative and financial processes.
“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,” states Jodok Betschart, Co-Founder & -CEO of Cloover.
With the fresh capital, Cloover plans to double down on its installer software development and further strengthen its sales, payments, and financing offering.
“We are bringing renewables to the remaining mass market in Europe. That is 160 million households that are still left out. By combining our proprietary data on consumer energy savings with multiple capital sources, we are able to extend financing to households who previously could not access these assets. Moreover, through our platform Cloovers partners can unlock working capital for their operations which allows even faster deployment of renewables in Europe,” said Peder Broms, Co-Founder & -CEO.
According to Mercom’s Q1 2024 Solar Funding and M&A report, global VC funding for the solar sector in Q1 2024 came to $406 million in 13 deals, an 81% decline YoY compared to $2.1 billion raised in 18 deals in Q1 2023. Funding declined 68% QoQ compared to the $1.3 billion raised in 19 deals in Q4 2023.
In 2023, Solfium, a solar-tech company, raised $3 million in seed funding at the Bolsa Institutional de Valores (BIVA), Mexico’s second-largest stock exchange, focused on technology and supported by Nasdaq.
