Tomorrow.io, the Boston-based weather tech, called off its plan to go public via a merger with a SPAC in early March 2022.
The company cited market conditions as the main reason to back out from the deal with Pine Technology Acquisition Corp. The six-year-old startup offers accurate weather forecasts and has plans to launch its network of radar satellites.
According to Shimon Elkabetz, Chief executive officer of Tomorrow.io, execution of the deal had become tricky.
The Current Status
According to Elkabetz’s post on LinkedIn, “Pine Technology has been and continues to be a tremendous partner. In the recent months during our SPAC process, however, it became apparent through both our strategic initiatives and overall market conditions that the best choice for the company and its expansive growth is to remain private for now.”
He also added that the company does not plan to alter its course, and the business remains strong.
The Russian invasion of Ukraine, expectations for the Federal Reserve to raise interests, and higher inflation have led to the stock market’s decline. NASDAQ composite index is down by 18% in the current year. Many local company stocks are declining, Toast 50%, HubSpot 37%, and Wayfair 34%. Companies completing SPAC deals have had the hardest hits, like Boston biotech Gelesis by 67%.
The company announced its plans to merge with SPAC Pine Technology in December 2021. Executing the deal meant raising $ 420 million for Tommorow.io putting the company’s valuation at $ 1.2 billion. The company announced that it would pay a cancellation fee of $ 1.5 million to Pine Technology and remain private.
The Plan Forward
Tomorrow.io plans to solve the problem of accurate weather tracking. The company wants to tackle this via weather data collected using space technology. Such data will help the forecasters and scientists have precise and accurate predictions regarding any catastrophic event and ultimately help create a better forecasting model.
The company is already using its technology to harness data from new sources. It includes the video feed of street cameras, disruptions in wireless network signals, and sensors of internet-connected cars. It enables Tommorow.io to have a weather API that seamlessly integrates devices and provides precise and rapid hyperlocal weather forecasts. You can check https://www.tomorrow.io/weather-api/ to know more.
The company’s next target is to have continuous radar imaging of the entire world. Tomorrow.io wants to achieve this feat by launching numerous small satellites to create a network.
Currently, we get infrared images of storms from satellite feed forecasting. However, the radar data comes only from the ground stations. A NASA satellite processes this data over a while. Tomorrow.io plans to bridge the gap with cheaper satellites, especially over the oceans.
The Road Ahead Is Not Easy
Equipping the small satellites with radar tech is not an easy task. Tomorrow.io’s systems have ambitions to measure the water content of clouds or the amount of rainfall with more precision. The current forecasting models lack such a feat.
According to Rei Goffer, the Chief Strategy Officer, “We looked at what’s being done already, where the gaps are, and what we can do to help. The biggest gap by far is around measuring precipitation, and the best instrument to measure it is radar.” He said this in an interview at the Bourne office, where the radar is under development.
The Predictions
Tomorrow.io cracked the code for providing detailed weather information to clients. The company’s clients include the New England Patriots, Uber, and JetBlue.
When Hurricane Ida hit the Northeast coast in late August 2021, Tomorrow.io’s dashboard showed the flooding scenarios and travel restrictions down to the block level. The customers were privy to when and where the next storm will hit and how it will alter course over the next few days.
The dashboard also predicted Boston to have a lesser impact vis-à-vis New York City. It gave prior warnings that the Massachusetts Turnpike, sections of Storrow Drive, and Logan Airport will have the worst effect of heavy rains from Ida.
As Ida approached New York, Tomorrow.io guided the US Open tennis tournament about the rainstorm’s timing. While most predictions informed the tournament authorities to cancel all the day’s matches, the startup helped them with precise information. Their prediction of rain’s arrival late at night helped conduct the tournament smoothly.
The precision technology and a futuristic outlook is guiding the company to provide improved solutions for weather forecasting. If the company can launch the mini-satellites with radar tech, the new information can be phenomenal for numerous sectors.
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