Alexander Levy, a seasoned investor and entrepreneur, and the founder of the emerging weather prediction company Atmo, observes that “Almost every business on earth is impacted by weather.”

Having recently completed the Y Combinator program, the company has secured $2 million in funding from Signia Venture Partners and Sound Ventures to further develop its forecasting software, recognizing the critical need for businesses to understand potential weather-related impacts.

Atmo was established by Johan Mathe, previously a member of the Google X team responsible for Project Loon, an initiative aimed at delivering internet access through a network of high-altitude balloons in developing regions.

Mathe explained that his work on Project Loon involved extensive analysis of weather conditions, as navigating the balloons effectively required accounting for complex weather patterns.

“The sheer volume of weather data presented significant challenges,” Mathe stated. “This led me to believe there was an opportunity to create a more accessible intersection between weather and artificial intelligence.”

This concept evolved over four years, ultimately resulting in the creation of Atmo (initially known as Froglabs.ai), a startup based in Berkeley, California, that delivers predictive weather analytics to a diverse range of businesses, including those in renewable energy and the retail sector.

Levy, who previously co-founded the drug discovery firm Atomwise, initially provided investment based on the potential of Mathe’s idea. He later transitioned into a co-founder role after recognizing the substantial value of weather data.

Currently, Mathe, Levy, and chief technology officer Jeremy Lequeux collaborate from Levy’s residence in Berkeley as they refine their software and expand the company’s reach.

Recent events underscore the importance of Atmo’s services. Data from the National Oceanic and Atmospheric Administration indicates that climate-related events have resulted in approximately $89 billion in losses for the United States since 2019.

“All businesses are susceptible to weather’s influence,” Levy explained. “For instance, an ice cream shop’s sales can fluctuate by as much as 10% depending on the temperature. We’ve focused on developing a versatile predictive system that combines global historical weather data with current conditions to analyze how key business metrics are affected by the weather.”

The company currently serves a growing client base, including two businesses valued at over $1 billion in the renewable energy, eCommerce, and logistics sectors, according to Levy.

“We also concentrate on assessing risks associated with extreme weather events, and predicting these unusual occurrences where proactive measures are limited,” Levy said. “We differentiate this type of prediction from optimizing operations during typical weather conditions.”

As extreme weather events become more frequent, demand for Atmo’s services is expected to increase, as both governments and businesses seek to enhance their ability to prepare for and recover from these challenging circumstances. “There’s a growing emphasis on resilience, and I believe Atmo is positioned to provide the necessary insights for large companies addressing this critical issue,” Levy concluded.