Skip Capital has led a $20 million Series B fundraising round for infrastructure digital twin company Neara.
The round has been supported by Square Peg Capital, which led Neara’s $7.25 million Series A round last year, and OIF Ventures.
The Sydney-based software-as-a -service (SaaS) business plans to use the new funding to step up international expansion focusing on the US.
To date, Neara has built digital twins of power transmission lines for major Australian utilities providers including Ausgrid, Essential Energy and Endeavour Energy (NSW).
The technology enables clients to stress test their transmission systems digitally to prepare for and better withstand weather emergencies. The process pinpoints where upgrades should be focused. Neara’s technology also assists with the complex engineering analysis required to optimise existing networks and integrate renewable energy inputs more efficiently and effectively.
Neara was founded by ex-Google software engineer Daniel Danilatos in 2016 and uses artificial intelligence (AI) and machine learning to create dynamic digital twins – virtual models of infrastructure networks.
Since its Series A raise, Neara has been working with US utilities to pilot use of its technology. The company now plans to double its US staff over the next six months. Neara anticipates electricity disruptions caused by weather events and ageing infrastructure will drive demand for its services in the US.
Head of Skip Capital, Kim Jackson, said her firm was excited about Neara’s global potential.
“This is our third investment in the company and they continue to impress us with their product, focus and vision,” she said. “They have already digitally modeled more than half of Australia’s electricity network, helping to transform the way utilities operate their infrastructure and respond to weather crises such as wildfires and floods, which have now become regular events.”
James Tynan of Square Peg added: “It’s obvious to see that solutions like Neara are required to protect communities from the effects of climate change while also helping utilities to design, analyse and manage the changes to their network that are necessary to hit climate targets.”
Neara chief commercial officer Jack Curtis said: “The utility industry is spending billions physically assessing and maintaining their ageing assets, and simultaneously trying to resolve how to integrate renewable assets. Our platform enables a holistic approach to addressing these key challenges while enabling leaps forward in cost reduction, safety and reliability.”