Insurance provider Understory gets into renewable energy following $15M Series A

In 2014, Understory co-founder and CEO Alex Kubicek set out to deploy ground-level weather stations to track real-time weather data and anticipate needs, such as resource allocation during or after a storm.

Teaming up with Brian Dow, Kubicek aimed to extend thunderstorm and tornado warnings by 10 to 15 minutes, but discovered outdated data being used for weather forecasting.

The development of the weather station, named Dot, allowed for high-frequency measurements of wind, rain, hail, temperature, pressure, and humidity, providing a detailed understanding of ground conditions.

Over the following eight years, Understory deployed Dot stations globally, accumulating data and securing funding, including a $1.9 million round led by True Ventures in 2014.

Utilizing the data collected, Understory built global catastrophe models to assess risk to properties and received validation from reinsurance partners to offer historical data as a Software-as-a-Service product.

Looking to expand their offerings, Kubicek, Dow, and Neil Irwin founded an insurance company under Understory, providing parametric insurance solutions for severe weather risks, such as the Dealers Open Lot insurance for U.S. auto dealers.

By offering early notifications to auto dealerships, Understory has helped customers avoid significant damages, with one client reducing hail damage from $110 million to $50 million through timely alerts.

With a focus on renewable energy, Understory secured a $15 million Series A funding round to develop risk mitigation technology for the solar industry, enabling solar farms to save on hail repair costs and predict weather events with advanced notice.

Kubicek emphasized the importance of mitigating weather risks in the solar industry to prevent project cancellations and reduce potential losses, highlighting the impact of Understory’s technology in addressing these challenges.