AI-driven grid intelligence company Overstory has closed a $43 million Series B funding round, deepening its push to help utilities address one of the fastest rising risks in the energy sector: wildfires. The new investment will accelerate the development of the company’s advanced risk modeling tools, which are increasingly being adopted by utilities attempting to protect infrastructure and communities as climate pressures intensify.

Building Precision Tools for a Growing Utility Crisis

Founded in 2018 in Amsterdam, Overstory has built its business around a challenge that has become central to grid operators worldwide. Vegetation interacting with power lines is one of the largest drivers of wildfires and outages, yet conventional management approaches often rely on outdated data, slow manual inspections, and incomplete risk assessments. Overstory’s platform combines high-resolution satellite imagery, advanced remote sensing, and AI analytics to give utilities a tree-level understanding of risk across massive service territories. The company’s technology can distinguish healthy vegetation from stressed, dying, or overgrown trees and can project where fires are more likely to ignite due to changing environmental conditions. Overstory currently works with more than 50 utilities across the Americas and Europe, a client base that has grown in parallel with rising tree mortality rates, higher labor costs, and intensifying extreme-weather seasons. As utilities face mounting regulatory, social, and financial pressure, better vegetation intelligence has quickly shifted from operational optionality to a core resilience requirement.

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Leadership Signals Strong Utility Appetite for AI-Driven Risk Data

CEO Fiona Spruill said that utilities are increasingly receptive to tools that provide sharper, more operational insights into system-wide wildfire exposure. According to Spruill, utility teams are eager to adopt data sources that can capture early signs of vegetation stress and track risk over large and remote geographic areas. Her emphasis reflects a wider transformation underway in the utilities sector. Grid operators are confronting unprecedented pressures, from rising accident liabilities to the need for real-time situational awareness. More accurate vegetation analytics are emerging as one of the most cost-effective levers to reduce the risk of catastrophic fires.

New Wildfire Intelligence Platform Marks a Step Forward

Alongside the financing announcement, Overstory introduced the newest generation of its Wildfire Intelligence platform. At the center of the update is a proprietary Fuel Detection Model that helps utilities identify where dead or highly flammable fuels pose the greatest ignition and spread risk. While many utilities still rely on publicly available fire-risk maps, these datasets often generalize risk across large areas. Overstory’s latest model aims to deliver more operational detail, showing where vegetation and environmental conditions intersect with utility assets in ways that warrant immediate action. The focus is on turning risk signals into targeted field operations, a capability that is growing more urgent as wildfire seasons lengthen.

Backing from Impact-Focused Investors

The Series B round was led by Blume Equity, with participation from Energy Impact Partners and a broad group of existing climate-tech investors including B Capital, Convective Capital, Semapa Next, Pale Blue Dot, CapitalT, Bentley Systems, MCJ, and Moxxie Ventures. These investors have increasingly pointed to Overstory’s ability to simultaneously deliver public safety benefits and operational value to customers. Michelle Capiod, Co-Founding Partner at Blume Equity, said that the company fits the profile of climate solutions that pair measurable emissions, safety, or resilience impact with compelling economic returns, a combination that is attracting greater investor attention as climate risks become financial risks.

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A Market Poised for Rapid Expansion

Utilities across North America and Europe face growing wildfire liabilities, stricter vegetation management rules, and more volatile weather conditions driven by climate change. These factors are shaping a multibillion-dollar market for grid resilience tools that can reduce accident risk and direct maintenance crews more efficiently. Overstory’s technology positions the company to play a central role in this emerging landscape. With satellite coverage improving and machine learning models becoming more sophisticated, the company aims to provide utilities with tools that can catch problems before they develop into dangerous conditions.

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