tem raises $75m to reinvent energy transactions
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tem, the energy transactions scaleup, today announces it has raised $75 million in an oversubscribed Series B round led by Lightspeed Venture Partners. The investment comes as the company surpasses $300 million annualised gross transaction value and brings its total funding to $94 million.
The round was led by Lightspeed Venture Partners, with strategic follow-on participation from Hitachi Ventures, Voyager Ventures and Schroders Capital alongside existing investors including us at AlbionVC and Atomico. Paul Murphy, partner at Lightspeed Venture Partners, joins tem’s board as part of the round.
Modernising the old-world energy transaction with new-world tech
For decades, energy has been priced and traded through complex, opaque and outdated market infrastructure that buries fees and risk premiums inside contracts, significantly driving up the cost of energy bills for businesses. tem is building the first AI-native energy transaction infrastructure to fix the broken market – replacing the traditional transaction flow with a single solution that removes inefficiencies, and returns value back to businesses and generation owners.
tem’s technology has two components:
- Rosso – the groundbreaking infrastructure, an AI-powered transaction engine that strips out hidden fees and inefficiencies from every energy deal, executing contracts from end to end
- RED – the neo-utility that tem has built on top, which is enabled by Rosso’s price advantage and gives businesses and brokers a modern interface to contract, buy, sell and manage energy, whilst unlocking a new price floor
In 2025 alone, tem has facilitated over 2TWh of energy transactions – the equivalent of powering all of Liverpool for a year – for its 2,600+ customers throughout the UK, including Boohoo Group, Fever-Tree, Silverstone Circuit and Newcastle United FC. tem reduces business energy bills by up to 30%, delivering a structural price advantage that no incumbent can match. As tem’s customer base and transaction volume grow, Rosso’s data pool will become more advanced, progressively unlocking further price innovation.
Reinventing the standard, and empowering every level of the energy market
Today, Rosso exclusively powers tem’s RED interface, which is already used by thousands of businesses and brokers today. As tem scales and builds network effects, the company’s plan is to roll out the infrastructure for incumbents and neo-utilities as well, enabling simpler, smarter fulfilment of transactions for the entire market.
The investment will also go towards tem’s international expansion plans. Texas and Australia – where the business is in talks with supply and demand customers in need of its transaction infrastructure – will be priority markets, with several others to follow.
The raise comes amidst growing investor conviction that energy tech is the new economic battleground – driven by volatility, electrification, and the rapid growth of data centres and AI. With data centre electricity demand projected to rise 165% by 2030, and energy-intensive industries globally also driving rising demand, the race to secure affordable, efficient energy is becoming critical to economic competitiveness.
Joe McDonald, CEO and co-founder of tem, says:
“Energy underpins every industry in the world, and yet no one has succeeded in course-correcting the fundamentally flawed way the markets work. For decades, the industry has tried to patch over the costly inefficiency of energy transactions with new utility brands and new promises. The real opportunity in energy looks a lot like what fintech did to banking: rebuild the core infrastructure, then let innovation explode on top of it.
“That’s exactly what tem is doing. We’re building the world’s first AI-native infrastructure for energy transactions – making them fairer, more transparent, and radically more efficient. But more importantly, we’re unlocking the next generation of energy companies. Thousands of new brands, neo-utilities, and market participants will be able to plug into tem and compete on a level playing field. This funding allows us to set a new global standard for how energy is transacted – whether that’s powering a warehouse in Manchester, a neo-utility in Texas, or one of the largest utilities in the world.”
Paul Murphy, Partner at Lightspeed Venture Partners, comments:
“tem is one of those rare companies whose insight, technology and roadmap to scale all line up. They’ve combined deep market expertise with exceptional engineering, and a plan with global potential from day one. We back a small number of companies each year, and between the clear market demand and the economics of tem’s model, which align perfectly – tem stood out immediately. We’re excited to work alongside them as a true partner as they scale globally.”
Adam Chirkowski, Partner at AlbionVC, comments:
“Having partnered with tem since the very beginning as the first institutional investor, we’ve always had high conviction in the team’s ability to revolutionise the energy market. Their execution has been exceptional. Their journey to securing this Series B is a testament to the power of their technology and their vision to bring fintech-style transparency to a notoriously opaque sector. With Lightspeed now onboard and a clear path to expansion internationally, they are only just getting started in their mission to become the new infrastructure for energy transactions. We are incredibly proud to continue supporting them as they take this global.”
Adam Chirkowski, Partner at AlbionVC
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