Tomorrow.io Secures $77 Million in Series D Funding

ClimaCell, a weather intelligence platform, has announced the completion of a $77 million Series D funding round. The investment was spearheaded by Stonecourt Capital, with additional participation from Highline Capital. This latest funding elevates the company’s total raised capital to approximately $185 million.

Alongside the financial injection, ClimaCell revealed a rebranding initiative, adopting the name Tomorrow.io. The company’s official legal name is now The Tomorrow Companies Inc.

Satellite Fleet and Expanded Vision

This announcement follows closely on the heels of the company’s previous declaration to deploy a network of compact, radar-equipped weather satellites. This satellite initiative is a key driver behind the name alteration.

Initially, Tomorrow.io leveraged a unique methodology for gathering weather data, utilizing existing wireless network infrastructure and IoT devices. The original name, ClimaCell, reflected this approach. However, as CEO and co-founder Shimon Elkabetz explained, the company’s current focus extends far beyond its initial data collection methods.

Focus on Weather-Related Challenges

“The core mission is to empower nations, businesses, and organizations to proactively address weather-related difficulties,” Elkabetz stated. “Our ambition has consistently been to become the world’s foremost weather enterprise – the most innovative and impactful. We believe this is the opportune moment to introduce a new name, signifying our commitment to helping others control tomorrow, starting today.”

Rick Davis, a partner at Stonecourt, echoed this sentiment. “The company’s growth since its inception has been remarkable, but a larger opportunity exists. Tomorrow.io’s development, particularly the recent announcement regarding satellite deployment, demonstrates its position as the future of global weather forecasting.”

A Unique Investment Profile

Elkabetz highlighted that Tomorrow.io represents an atypical investment for a private equity firm like Stonecourt. While Stonecourt previously acquired 365 Data Centers, their portfolio also includes ventures like Alpenglow Rail, a freight rail company based in Denver.

Despite pandemic-related challenges impacting some of Tomorrow.io’s clientele – including companies like Uber and Delta – the team successfully diversified its customer base.

Growth and Future Plans

The company secured contracts with numerous large logistics firms, encompassing major railway operators in the U.S. and Mexico, as well as smaller entities in the drone, autonomous vehicle, and electric vehicle sectors. Tomorrow.io reported a 200% net revenue retention rate and an 850% increase in annual contract value over the past two years.

The newly acquired funding will be allocated towards launching additional satellites and enhancing the company’s overall product offerings. Furthermore, it will accelerate the company’s market expansion strategies.

“We are a distinctive company, blending a SaaS model with space-based operations,” Elkabetz noted. “Many Earth observation companies are now realizing that simply providing raw data isn’t sufficient; it’s becoming commoditized. They need to evolve into software companies, developing platforms and analytical capabilities. That transition presents a significant challenge.”