German climate fintech Cloover raises €104.8 million in seed round led by Chris Sacca’s Lowercarbon Capital

Berlin-based Cloover, a climate fintech startup that enables renewable energy technology providers to offer their services on a subscription basis, has secured $114 million (approximately €104.82 million) in a seed round of funding.

The investment was led by Lowercarbon Capital, a company founded by “well-known” venture capitalist Chris Sacca. Other investors include 9900 Capital and QED.

Shawn Xu, partner at Lowercarbon Capital, says: “Rooftop solar is a money-saving, no-brainer retrofit for homeowners, and Cloover’s technology stack and financing capabilities provide installers with the fastest possible path to electrifying 200 million homes across the European continent. “

In October 2023, Cloover secured €7 million in a pre-season financing round.

Increasing the availability and affordability of renewable energy

Cloover was founded by four experienced entrepreneurs: Peder Broms, Jodok Betschart, Tony Kirmo and Valentin Gönczy. Together, they have over 40 years of experience in finance and technology.

The founders have experience in building two successful startups in the software and fintech industries. Their mission at Cloover is to make renewable energy more accessible and affordable, reflecting their commitment to sustainable solutions.

Betschart’s co-CEO says: “Clover’s vision is to dismantle the silos between key stakeholders essential to a successful energy transition.”

“By streamlining the sales process for installers, managing payment and financing flows, sourcing necessary materials, and overseeing energy production and consumption for individuals, Cloover connects the dots and leverages synergies across the value chain.”

The company’s platform enables renewable technology providers to provide services on a subscription basis. This makes it easier for individuals and businesses to switch to renewable energy because it is cost-effective and low-risk.

The platform not only increases the availability of sustainable finance, but also helps create a decentralized network of solar panels, battery storage, electric vehicle charging stations and heating pumps.

These assets support local communities and improve national network infrastructure across Europe, highlighting Cloover’s positive impact on sustainable energy systems.

Co-founder Gönczy adds: “The prevailing approach in the industry tightly protects innovation, enabling larger companies to improve their operations and grow. However, to achieve Net Zero, there is no time to delay progress, as more than 85 percent of all installations are still performed by small and medium-sized business installers.

“Our software provides this target group with the same advanced digital tools that large players have long had at their disposal, enabling them to compete on a level playing field and accelerate the adoption of sustainable energy.”

Use of capital

With the funding, Cloover will focus on improving its installer software and further improving its sales, payment and financing services.

Co-founder Broms says: “We are bringing renewable energy to the rest of the mass market in Europe. This means 160 million households are still left behind. By combining our proprietary data on consumer energy savings with multiple sources of capital, we are able to expand financing to households that previously did not have access to these assets.

“Moreover, through our platform, Cloovers partners can unlock working capital for their operations, enabling even faster deployment of renewable energy sources in Europe.”

Cloover says it has witnessed progress in the renewable energy sector, boasting hundreds of partners across Europe and generating revenues of more than $3 billion. The company’s goal is to transform the industry landscape by connecting 1 billion people to renewable energy.