Tem lands £55m Series B led by Lightspeed Venture Partners to fix the energy market with transaction infrastructure

tem, an energy transactions startup, has raised £55 million in an oversubscribed Series B round led by Lightspeed Venture Partners, with participation from Hitachi Ventures, Voyager Ventures, Schroders Capital and Allianz. The round includes follow-on investment from existing investors AlbionVC, Atomico and Revent. The funding brings tem’s total capital raised to £70 million.

The platform addresses the way energy is priced and traded through complex and opaque market infrastructure that embeds fees and risk premiums into contracts. tem is building energy transaction infrastructure designed to replace traditional transaction flows with a single solution intended to remove inefficiencies and return value to businesses and generation owners.

tem’s technology is built around two components. Rosso is its transaction infrastructure, which executes energy contracts end-to-end and is designed to remove hidden fees and inefficiencies from energy deals. Built on top of this, RED is a neo-utility interface that allows businesses and brokers to contract, buy, sell and manage energy, using the pricing advantages enabled by Rosso.

In 2025, tem facilitated over 2TWh of energy transactions for more than 2,600 customers across the United Kingdom, including Boohoo Group, Fever-Tree, Silverstone Circuit and Newcastle United FC. It states that its approach reduces business energy bills by up to 30% by removing hidden fees and inefficiencies from energy deals.

The investment will support international expansion, with Texas and Australia identified as priority markets where tem is in discussions with supply and demand customers. Paul Murphy, partner at Lightspeed Venture Partners, will join tem’s board as part of the round.

Energy underpins every industry in the world, and yet no one has succeeded in course-correcting the fundamentally flawed way the markets work. For decades, the industry has tried to patch over the costly inefficiency of energy transactions with new utility brands and new promises. The real opportunity in energy looks a lot like what fintech did to banking: rebuild the core infrastructure, then let innovation explode on top of it. That’s exactly what tem is doing. We’re building the world’s first AI-native infrastructure for energy transactions – making them fairer, more transparent, and radically more efficient. But more importantly, we’re unlocking the next generation of energy companies. Thousands of new brands, neo-utilities, and market participants will be able to plug into tem and compete on a level playing field. This funding allows us to set a new global standard for how energy is transacted – whether that’s powering a warehouse in Manchester, a neo-utility in Texas, or one of the largest utilities in the world.

Joe McDonald, Co-founder & CEO

tem is one of those rare companies whose insight, technology and roadmap to scale all line up. They’ve combined deep market expertise with exceptional engineering, and a plan with global potential from day one. We back a small number of companies each year, and between the clear market demand and the economics of tem’s model, which align perfectly, tem stood out immediately. We’re excited to work alongside them as a true partner as they scale globally.

Paul Murphy, Partner at Lightspeed Venture Partners

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