Reinsurance News

MS&AD, SCOR back Energetic Insurance Series A funding round

8th October 2021 - Author: Katie Baker

Energetic Insurance has completed a Series A funding round which totalled $7 million, led by Schneider Electric Ventures with participation from MS&AD Ventures, MCJ Collective, and Atlantic Global Risk.

The startup’s existing investors Congruent Ventures, SCOR P&C Ventures, MUUS Asset Management, Powerhouse Ventures, and Clean Energy Venture Group also participated in this round.

Energetic operates as a Managing General Underwriter (MGU) with initial capacity provided by SCOR Global P&C, the fourth largest global re/insurer rated AA-/Aa3 by the three major ratings agencies.

Energetic’s founders met SCOR P&C Ventures at the first ITC conference in 2016 which ultimately led to their partnership for the EneRate Credit Cover product.

The round blends support from global players across the energy, insurance, and finance sectors, demonstrating cross-sector alignment and collaborative action for renewable energy development.

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So far, Energetic has placed their novel form of credit insurance on projects with over $70M of insured value with 160 sites across 13 U.S. states.

The funding raised will enable Energetic to expand their team and reach new markets, with a focus on technology development, product offering diversification, and geographic expansion.

Varun Jain, General Partner at Schneider Electric Ventures stated: “Schneider Electric is a market leader in the deployment of distributed, digital and decentralised technologies for the renewable and energy efficiency sectors. To scale these deployments and achieve a successful energy transition we must have affordable and scalable financing options.

“We believe Energetic Insurance is a key to enabling our industry achieve this scale because their product enables all kinds of businesses – not just the giant investment grade corporations – to adopt renewable and energy efficiency.

“Energetic Insurance is unlocking the much sought-after “middle market” of energy and we are excited to support them in their growth.”

Tiffine Wang, Partner at MS&AD Ventures commented: “At 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 Insurance’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.

“The 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.”

James Bowen, Co-founder and CEO of Energetic Insurance stated: “I’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 expand 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.”

Julian Torres, Chief Investment Officer at Scale Microgrid Solutions said: “EneRate Credit Cover is a powerful tool I can bring to bear as a financier and developer of resilient and sustainable distributed generation projects.

“It allows me to target with confidence the large segments of the US market that have historically been considered “unbankable” by tax equity investors or lenders. I’m excited to see the global venture community’s support for the critical role Energetic is playing to expand the adoption of renewable energy in the US.”

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