Funding brings platform to market with exclusive suite of parametric insurance solutions, providing swift relief to businesses impacted by weather-driven events
Adaptive Insurance – a Texas-based climate resiliency company harnessing advanced AI and climate data to redefine climate based parametric insurance – has successfully closed a $5 million USD seed funding round.
Led by Congruent Ventures, with additional investments from Montauk Climate, Generation Space (US arm of Seraphim Space), and private funders, the financing will accelerate the nationwide rollout of Adaptive Insurance’s innovative parametric insurance products, starting with its flagship product, GridProtect.
GridProtect, the first ever short-term power outage insurance product, will use the simplicity of parametric insurance – verified trigger events, agreed-upon payments, and speedy claims processing – to provide immediate financial relief for businesses impacted by short-duration power outages. These outages, which cost American businesses an estimated $150 billion annually, are becoming more frequent as the nation’s aging power grid struggles under increasing demand.
In addition to bringing GridProtect to market, the investment will be used to:
● Enhance unparalleled data and analytics capabilities for more precise risk assessment and faster claim processing.
● Expand Adaptive Insurance’s data science and engineering teams to support continued innovation.
● Develop additional parametric insurance products, scheduled to launch by the end of the year, aimed at addressing a broader range of climate and weather-related risks.
“After more than 20 years in the insurance industry, I’ve witnessed firsthand the growing impact of climate shifts on both the insurance market and consumers,” says Mike Gulla, CEO and Co-Founder of Adaptive Insurance. “With the severity of weather extremes, population shifts, regulations, and legacy systems, traditional insurance models simply aren’t agile enough to mitigate the immediate financial shocks that businesses face during increasingly frequent power outages.
“With GridProtect (and all our parametric solutions), we want to change that. By leveraging AI and real-time climate data, we’re offering businesses rapid relief and resilience against everyday weather events, eliminating the traditional waiting periods. We’re immensely grateful to have found like-minded investors keen to support us on this mission as we set out to change how businesses safeguard against climate risks.”
Kevin Kopczynski at Congruent Ventures comments: “The environment is changing faster than our communities, infrastructure and traditional insurance can adapt – leaving businesses to bear the risk of increasingly frequent disruptions. Starting with GridProtect, Adaptive Insurance combines proven insurance sector experience with a forward-thinking, data-driven framework to offer customers simple and timely solutions to seemingly complex risks. We are excited to be partnering with the team to rethink what climate insurance can be.”
Philip Krim at Montauk Climate, adds: “The most important aspect to understand about Adaptive is that it offers businesses immediate financial relief when short-term power outages strike. Traditional insurance is usually slow and complicated, but Adaptive is changing that. This is the first-ever short-duration power
outage insurance product designed specifically to protect U.S. business owners. Adaptive is filling a massive gap with a simple, fast, and effective platform. We’re big believers in the potential of parametric product applications within the insurance industry.”
“It’s exciting to support a company that’s filling a critical market gap with a very smart solution,” says Lewis Jones of Generation Space (US arm of Seraphim Space). “Their technology not only provides immediate relief in the face of weather events but also lays the foundation for long-term resilience and significant cost savings that can be redirected towards business growth, employee support, and community engagement.”
America’s power grid is showing signs of strain, with 70% of its infrastructure over 25 years old – much of which is approaching the end of its lifespan. As electricity consumption from datacenters, clean transportation, and air conditioning pushes the system further, the risk and costs of failure grow. The average annual number of weather-related power outages increased by roughly 78% during 2011-2021 , compared to the previous decade, underscoring the urgent need for solutions like the ones Adaptive is providing.
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About Adaptive Insurance
Adaptive Insurance is building an AI-driven platform that helps U.S. businesses create resilience against climate and weather-events, starting with its suite of parametric insurance products. Adaptive recognizes that increasing weather events, bigger gaps left by traditional insurance, and an aging infrastructure leave consumers paying the price. It addresses the growing demand for solutions by using the simplicity of parametric insurance – verified data-driven trigger events, agreed-upon payment amounts, and quick payouts – to help create a safety net against the unpredictable events that impact businesses. For more information on how Adaptive helps businesses gain the upper hand on Mother Nature, visit www.adaptiveinsurance.com .
About Congruent Ventures
Congruent Ventures is a leading early-stage venture firm focused on partnering with entrepreneurs to build companies addressing climate and sustainability challenges across four themes: Mobility and Urbanization, the Energy Transition, Food and Agriculture, and Sustainable Production and Consumption. The firm has more than $1 billion in AUM across early-stage climate tech funds, making it one of the largest climate portfolios in early-stage venture. With 60 companies in the portfolio, Congruent is amongst the most active investors in the climate and sustainability ecosystem.
About Montauk Climate
Montauk Climate is an investment firm dedicated to creating technology companies that are at the forefront of climate, infrastructure, and energy transitions. Co-founded by industry veterans with deep expertise in finance, energy, and technology, Montauk Climate is bringing world-class operators and established builders to architect the next wave of technology companies that are building a sustainable, electrified, and digitized future. Montauk Climate leverages its vast network of advisors and industry insiders to boost idea generation, deal execution, and talent sourcing. For more information, visit https://montaukclimate.com/ .
About Generation Space through Seraphim Space Ventures II LP
A UK registered fund, Generation Space LLC is the US arm of Seraphim Space Manager LLP and is responsible for all its US activities and for delivery of the US Generation Space Accelerator. Outside the US, Seraphim Space Manager LLP has pioneered ‘SpaceTech’ as an investment category, having launched the world’s first private and first public SpaceTech focused VC funds as well as the world’s first dedicated SpaceTech Accelerator, positioning it as the world’s leading investment group focused on the space sector’s $trillion investment opportunity.
