Finland’s Skyfora raises €4M to turn cell towers into high-resolution weather sensors; here’s why

Skyfora, a Helsinki-based company specialising in AI-powered weather technology, has secured €4M in a funding round. 

Danish VC firm Ugly Duckling Ventures and Dutch-based LUMO Labs led the investment, which was also participated in by Voima Ventures and the EIC Fund.

Linn-Cecilie Linnemann, Partner at LUMO Labs, says, “Skyfora’s ability to provide critical weather data is a perfect fit with LUMO Labs’ focus on climate action and sustainable cities. As climate change intensifies, reliable weather intelligence becomes increasingly crucial for urban resilience.”

“Skyfora’s use of first-party data and AI-driven approach align perfectly with our investment strategy. By harnessing existing telecom networks to generate exponentially more atmospheric data, they are unlocking new possibilities in climate technology—making this a truly compelling opportunity.”

This investment follows previous funding from the European Space Agency, EIC Accelerator, and Business Finland, which supports Skyfora’s efforts to improve global weather forecasting.

Skyfora has tested its technology with industry leaders and plans to use new funding to scale its Telecom GNSS Meteorology solution on a larger scale with partners and expand into key markets.

An AI-powered weather intelligence solutions provider

Skyfora develops weather technology focused on enhancing AI-driven forecasts. Its patented Telecom GNSS Meteorology solution repurposes existing cell towers as weather sensors, generating data to improve forecast accuracy. 

The technology aims to support climate resilience, provide industry insights, and create a revenue opportunity for mobile network operators without additional hardware investments.

Fredrik Borgström, CEO of Skyfora, says, “As extreme weather events become more frequent due to climate change, precise forecasting is more critical than ever. Our technology fills critical observation gaps, and it provides a continuous flow of high-resolution data, which is ‘superfood’ for AI models while enabling MNOs to monetise their infrastructure in a completely new way.”

Skyfora’s technology delivers real-time, large-scale weather insights for various sectors, including disaster response, insurance, aviation, renewable energy, and agriculture. Its innovation aims to support businesses and industries by improving weather forecasting and decision-making.

What do the investors have to say?

Andreas Green Rasmussen, General Partner at Ugly Duckling Ventures, says, “At Ugly Duckling Ventures, a key thesis is that the future of AI relies on the quality of, and rights to first-party data.”

“Skyfora’s commitment to building and utilising their own first-party datasets sets them apart. Their ability to provide uniquely valuable intelligence in a world increasingly reliant on AI-driven decisions is why we’ve invested. We are very pleased to join them on their journey and co-lead this round with LUMO Labs.”

Ugly Duckling Ventures is a Denmark-based venture capital firm focused on early-stage Nordic startups in B2B sectors. The firm supports founders with funding and guidance from its partner team, aiming to help develop the next generation of Nordic B2B companies.

Svetoslava Georgieva, Chair of the EIC Fund Board, adds, “We are delighted with the EIC Fund’s investment in Skyfora, an innovative company developing a next-generation weather intelligence. We believe in the potential of their technology that can save lives and mitigate economic disruptions and financial risks.”

“The unique form of financing via EIC – combining grants and equity – is proving itself highly attractive to Europe’s most promising startups like Skyfora.”

The European Innovation Council (EIC) Fund is an investment fund under the European Commission that supports companies across all technologies, industries, and EU countries, including those associated with Horizon Europe. It provides the investment component of the EIC Accelerator blended finance, with the European Investment Bank acting as an investment adviser. 

The fund aims to bridge financing gaps, help companies develop and commercialise disruptive technologies, and attract market investors. It also focuses on supporting female founders and reducing innovation disparities among EU countries.

Brief about LUMO Labs

Founded by Andy Lürling and Sven Bakkes in 2016, LUMO Labs transitioned from angel investing to managing its first fund in 2020 before introducing the LUMO Rise Fund. It is recognised for its diversity, equity, inclusion profile and active involvement in the Dutch startup ecosystem.

The firm’s LUMO Rise Fund, a €100M venture capital fund, invests in startups from pre-seed to Series A stages. It focuses on scalable and financially sustainable systems, infrastructures, and platforms connected to technologies like AI, Blockchain, IoT, Digital Security, and Extended Realities.

The fund supports solutions addressing social and environmental challenges aligned with UN Sustainable Development Goals, including Health and Wellbeing, Quality Education, Sustainable Cities, and Climate Action. 

Its primary investment regions are Benelux and Germany, with a secondary focus on the Nordics, Baltics, and Iberian Peninsula.