Munich-based Ark Climate, a software company that offers an end to end solution for municipal climate action, has raised €2.1 million in a pre-Seed round to grow their team, expand their presence in the German market and develop advanced emission data and AI models.
The round was led by the Climate Tech VC Satgana, joined by another.VC , the Voyagers Climate Fund and several experienced angel investors. The Federal Ministry of Research also participated in the round.
“Our platform empowers cities to make informed decisions and take swift action. Even with limited resources, they can effectively reduce emissions. Our team is currently working on AI-powered Climate Intelligence to further accelerate local climate action,” says Ruth Bosse, CEO of Ark Climate.
In the context of Ark Climate’s pre-Seed round, several other European climate-related software and data-driven startups have attracted funding in 2025–2026, illustrating continued investor interest in tools that help with emissions, optimisation and sustainability intelligence.
For example, Mondra (€11.8 million Series A), a London-based AI-powered supply-chain and climate intelligence platform, raised funding in late 2025 to expand its capabilities in supply-chain emissions management and resilience, and is now merging with Austria’s inoqo to broaden its sustainability data services. In Italy, NANDO (€3.3 million capital increase) secured capital to scale its AI-driven municipal waste-collection and food-waste optimisation technology, targeting reductions in inefficiencies across municipal services. And in Finland, Capalo AI (€11 million Series A) raised funding to scale its AI-enabled virtual power-plant platform and optimise battery storage operations, reflecting investor appetite for software that enhances grid flexibility and renewable energy integration.
Together with other activity such as dedicated climate and DeepTech funds being deployed across Northern Europe (e.g., a Footprint’s €76 million fund targeting early-stage ClimateTech, which indirectly supports similar segments) these rounds show a broader pattern of European capital moving into digital solutions that address emissions measurement, optimisation and climate-relevant infrastructure.
Ark Climate’s round sits at the earlier, municipal-focused end of this spectrum – smaller than some of the larger Series A rounds but aligned with a market where data-centric tools for sustainability and city-level transitions continue to attract funding and strategic backing from both specialised investors and government programmes.
“We feel the drive among cities to advance both climate action and digitalisation. Our pre-Seed financing of €2.1 million enables our now 12-person team to further develop the platform precisely to meet our customers’ needs,” Bosse adds.
Founded in 2024 by Ruth Bosse, Ark Climate is a climate and GovTech startup that develops a software platform that supports municipalities on their path to climate neutrality, with intelligent data analyses, integrated collaboration, and the targeted use of AI. 43 German municipalities already work with Ark Climate.
These cities and municipalities are under growing pressure to implement local climate action. Their responsibilities include district heating, bike lanes, public transport, and public buildings. In Germany alone, municipalities can reduce over 100 million tons of CO2e, 16% of the country’s total emissions – as per the German Environment Agency.
With climate disasters escalating and the 2045 climate neutrality deadline looming, the company believes the stakes are higher than ever.
“With the platform, we can coordinate our climate action measures efficiently, collaborate across departments, and present progress transparently. Ark Climate is making a real contribution on our path to greenhouse gas neutrality,” says Jannik Vester, Climate Protection Manager at the City of Überlingen.
Administrations struggle with complex decisions based on incomplete or fragmented data as well as the coordination of multiple stakeholders from local government and politics to citizens and businesses.
Ark Climate provides a cloud-based platform for municipal climate protection. The platform integrates climate data and connects all key stakeholders in one workspace. Cities can plan their climate actions, implement them collaboratively, and track progress.
Embedded data models enable the analysis of energy and emissions data, as well as the assessment of individual measures’ impact. Additionally, the platform evaluates whether current efforts are sufficient to meet political climate targets.
“Ark Climate combines a strong team with a clear vision for one of the most urgent issues of our time: implementing climate action locally. Cities are increasingly relying on digital solutions to reach their climate targets. Ark Climate has the potential to establish itself as a leading partner here. We see enormous growth potential and are excited to support the team on this journey,,” says Romain Diaz, General Partner at Satgana.
Read the orginal article: https://www.eu-startups.com/2026/02/german-municipalities-could-cut-100-million-tonnes-of-co2e-ark-climate-raises-e2-1-million-to-support-local-action/
