tem (tem.energy)
Category: AI in Energy
London-based AI-native energy transaction infrastructure startup that matches renewable generators with business buyers to cut electricity costs, operating the RED neo-utility and Rosso transaction engine. tem (tem.energy) was founded in 2021. The company is led by Joe McDonald. Based in London, United Kingdom. Team size: 101-500. Total funding raised: $94M. Latest round: Series B. Key investors include Lightspeed Venture Partners, Atomico, AlbionVC, Revent, Hitachi Ventures, Voyager Ventures, Schroders Capital, Allianz, Holly & Sam Branson, Harsh Sinha, Nilan Peiris.
- Founded
- 2021
- Headquarters
- London, United Kingdom
- Team size
- 101-500
- Total funding
- $94M
Value proposition
Uses AI (machine learning + LLMs) to automate energy buying/selling, removing 5-6 layers of intermediaries in wholesale markets so businesses pay closer to wholesale cost (savings up to 30%) while generators earn more.
Products and solutions
Rosso (AI transaction engine matching suppliers with buyers), RED (neo-utility interface for businesses/brokers to access energy directly with real-time cost visibility and predictable pricing).
Unique value
"Stripe of energy" / "world's first AI-native infrastructure for energy transactions" — replaces human trading desks and disparate systems with a single AI transaction layer, cutting costs and improving transparency.
Target customer
UK businesses (small-to-enterprise) buying electricity, plus renewable energy generators; energy brokers/consultants; future utility partners.
Industries served
Energy / Electricity markets, renewable energy, utilities
Technology advantage
AI matching algorithm forecasting supply/demand across buyers and sellers; LLMs for market prediction; decentralized/distributed energy model that improves algorithm performance; maintains stable price floor 10x lower than market.
How they differentiate
Unlike traditional suppliers (e.g. Bulb) that source via wholesale markets, tem directly matches businesses to renewable generators via AI, mitigating volatility and transaction costs; positions as infrastructure play (like AWS/Stripe) rather than a utility.
Main competitors
Octopus Energy, Trawa (Germany), incumbent wholesale energy market / big energy suppliers
Key partnerships
P3P Partners (Ofgem-regulated utility license partner), network of 50+ renewable generators including Biodynamic (UK biogas generator).
Notable customers
Boohoo Group, Fever-Tree, Newcastle United FC, Silverstone (British Grand Prix)
Major milestones
Founded 2021 by ex-Limejump team, £2.5M seed (2023), £10.5M Series A led by Atomico (2024), $75M Series B led by Lightspeed at >$300M valuation (Feb 2026), expansion to Australia and US/Texas
Growth metrics
2,600+ UK business customers; 6,000+ sites on RED; exceeds $300M annualized gross transaction value; valuation >$300M (Series B)
Market positioning
UK's "first neo-utility" and AI-native energy transaction infrastructure; scaling internationally to Australia and US (starting with Texas).
Geographic focus
UK (current), expanding to Australia and US (Texas) with Series B funding
About Joe McDonald
Ex-Vice President of Sales and Product at Limejump (energy tech startup sold to Shell in 2019); led development of virtual power plants enabling small renewable assets to access utility-scale market opportunities. 12+ years in the energy industry.
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Official website: https://tem.energy