Tem raises $75 M to automate energy markets with ai-first platform. London-based energy software startup secures a major Series B to scale its AI-native transaction engine February 10, 2026 - 9:24 am London-based energy software company Tem has closed a $75 million Series B round led by Lightspeed Venture Partners, with additional funding from AlbionVC, Atomico, Hitachi Ventures, Schroders Capital, Voyager Ventures, Allianz, and others. The round reportedly values the company at more than $300 million and will fund its expansion into the United States and Australia. Tem builds an AI-native energy platform designed to automate the pricing, matching, and execution of electricity transactions, a market that has long relied on manual processes and legacy infrastructure. Its core system uses machine learning to forecast supply and demand, match buyers with suppliers, and reduce the layers of intermediaries that typically add cost and complexity. According to Tem, more than 2,600 businesses in the UK are already on its platform, with customers reporting energy cost savings of up to 30 per cent compared with traditional procurement approaches. The startup also handled roughly two terawatt-hours of electricity transactions in 2025, a volume it says demonstrates growing demand for automated energy market infrastructure. Tem's approach is often described as bringing modern software-first tools to a sector still dominated by brokers, manual trading desks, and outdated systems. By replacing fragmented legacy workflows with a unified AI-driven engine, the company aims to make energy markets more efficient while giving businesses clearer price signals and lower transaction fees. With the new funding, Tem plans to accelerate its global footprint, beginning with key energy markets such as Texas in the United States and select regions in Australia, where grid modernisation and renewable integration are creating fresh demand for flexible energy trading tools.

Tem raises $75M to remake electricity markets using AI. As AI data centers drive up electricity prices, London-based startup Tem thinks AI might be able to help solve it, too. Tem has built an energy transaction engine that relies on AI to cut prices relative to other energy traders. The company has signed up more than 2,600 business customers throughout the U.K. on the promise that buying energy from its utility division can save them up to 30% on their energy bills. The startup recently closed an oversubscribed $75 million Series B led by Lightspeed Venture Partners with participation from AlbionVC, Allianz, Atomico, Hitachi Ventures, Revent, Schroders Capital, and Voyager Ventures, TechCrunch has exclusively learned. The round values Tem at more than $300 million, a source familiar with the deal told TechCrunch. The startup plans to use the funding to help expand to Australia and the U.S., starting with Texas. "We're in a nice position where we kind of have control over our own profitability. So I could have chosen not to raise at all and had a lovely, nice bootstrap business in some ways," Joe McDonald, co-founder and CEO of Tem, told TechCrunch. "Well, we're not that kind of business. We know what we want to achieve as someone who wants to go public over the years." Tem is a classic marketplace play, matching electricity generators with consumers. The company intentionally started by focusing almost exclusively on renewable energy generators and small businesses to fill both sides of the ledger. "The more decentralized and the more distributed, the better it is for the algorithms," McDonald said. "But this works all the way up to enterprise." The company's customers include fast-fashion retailer Boohoo Group, soft drink company Fever-Tree, and Newcastle United FC.