Mitiga Solutions, the risk modeller and calculation agent behind the Danish Red Cross volcano catastrophe bond, has announced a €13.25 million Series A capital raise, to fund its continued development and expansion.
Mitiga Solutions is a highly-specialised risk modelling firm, leveraging the latest science alongside advanced technology including artificial intelligence and high-performance computing to deliver insights into natural hazards and climate related perils.
The company has raised the funding in a round led by Kibo Ventures alongside Microsoft Climate Innovation Fund, Nationwide Ventures, Faber Ventures, and CREAS Impacto.
One of the key goals with the funding is the development of its Climate Score solution, as it aims to become a market standard for scoring climate exposure, to assess, measure and report climate hazard associated risks.
In addition, Mitiga Solutions aims to further scale the use of its physics-based models focused on natural hazards and disaster risks.
Dr. Alejandro Martí, CEO and Co-Founder of Mitiga Solutions, commented, “We’re on a mission to prevent natural hazards from becoming disasters and push the boundaries of how risks are managed and mitigated. But most importantly, we want to make the world a more resilient and safer place under a changing climate.”
Mitiga Solutions first came to light in the catastrophe bond world when it acted as the risk modeller and calculation agent for the Danish Red Cross sponsored volcano cat bond deal.
The very first catastrophe bond covering pure volcanic eruption risk, that Dunant Re IC Limited (Series 2021-1) was seen as ground-breaking in bringing a new peril to market, thanks in no small way to the advanced risk modelling undertaken to get investors comfortable with the peril.
Mitiga Solutions’ founders identified what they see as “a gap in commercial risk modelling capabilities for the insurance sector”, launching the company in 2018 as a spin-off of the National Supercomputing Center in Barcelona.
Now, with companies increasingly being required to report climate related exposures, Mitiga is incorporating a range of dynamic factors, such as weather and geophysical conditions, into its modelling in order to better evaluate the impact of natural hazards as a result of climate change.
The company also aims to help companies score their climate exposure, as the world increasingly moves towards disclosure and reporting of physical risks associated with climate change.
Martí added, “Traditional risk management tools that rely on past events to predict the future are no longer sufficient, leaving businesses exposed, assets stranded, and reputations at risk. As a business, we value transparency above all. This is why we work with our clients to quantify uncertainty and allow them to make informed decisions. Our risk models and climate score solutions are not black boxes and contribute to more resilient and adaptable businesses and societies.”
Javier Torremocha, Co-Founder and Managing Partner at Kibo Ventures, also said, “There is a lot of potential and resilience in climate technology. We have been impressed by what Alex and the team have built; a proprietary state-of-the-art technology with multiple applications. We are delighted to support Mitiga with its vision to become a category leader while helping to reduce climate change disasters.”
Brandon Middaugh, Senior Director, Microsoft Climate Innovation Fund, added, “The ability to predict and manage the effects of climate-related hazards is a critical need to adapt to a changing ecosystem. Mitiga’s use of AI and high performance computing is a valuable tool to assess climate-related risk across a variety of hazards to mitigate threats and build a more resilient future.”
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