Singapore-based startup, Climate Alpha, is making waves in the real estate industry with its AI-based platform that helps property owners and investors analyze the effects of climate change on their portfolios. With its recent $5 million seed funding round led by Jungle Ventures, Climate Alpha is ready to expand its services and provide valuable insights to asset managers worldwide.
Key Takeaway
Singapore-based startup Climate Alpha has raised $5 million in seed funding for its AI-based platform that analyzes the impact of climate change on real estate portfolios. With the help of Geographic Information System (GIS) data and economic modeling, Climate Alpha provides property owners and investors with valuable insights into climate change’s financial implications. The startup plans to expand its research and sales teams, while also venturing into the insurance industry and establishing a global fund for climate-resilient real estate investments.
Analyzing Climate Change’s Financial Impact with AI and GIS Data
Climate Alpha’s platform utilizes Geographic Information System (GIS) data and economic modeling to provide real estate owners and investors with a comprehensive understanding of how climate change will affect their properties. By combining public and private data streams with proprietary machine learning algorithms, the platform generates forecasts of climate change’s financial impact, enabling informed decision-making.
The Path from Book to Startup Success
Prior to founding Climate Alpha, Dr. Parag Khanna, a renowned geography and globalization expert, wrote a book titled “Move: Where People are Going for a Better Future.” During his research for the book, Dr. Khanna realized the need for climate-resilient locations and began exploring correlations between climate profiles and property value forecasts. This correlation, known as “Climate Oases,” evolved into Climate Alpha, offering cutting-edge spatial finance solutions.
Data-Driven Approach to Investment Decisions
Climate Alpha’s platform leverages data from industry-standard climate models, census records, and economic indicators to provide detailed physical climate risk data for any location globally. In addition, factors like the reliability of energy grids and economic momentum are incorporated to offset risk. By comparing historical trends with projected growth of a location’s economy and asset values, Climate Alpha enables investors to make well-informed decisions.
Expanding Research and Sales Teams for Global Impact
With the new funding, Climate Alpha plans to expand its research and sales teams, enhancing its investment advisory services. The startup aims to become a global platform for guiding asset managers towards resilient investments across public and private markets. It is also venturing into the insurance industry and establishing a global fund with major asset managers to invest in climate-resilient real estate.
