Rhizome

# High-Level Overview

Rhizome is an AI-powered software platform that helps electric utilities plan climate resilience investments and strengthen grid infrastructure against extreme weather threats.[1][2] The company serves a critical need in the power sector: as weather-related outages have increased 3x over the past decade and utilities face an estimated $500 billion investment gap to address climate risks, Rhizome provides utilities with tools to model climate threats, identify vulnerable assets, and build regulatory-approved investment cases.[2] The platform enables utilities to quantify risk at high resolution and measure the economic and social benefits of grid-enhancing investments, helping teams align on what to fund, when, and why.[2]

Rhizome addresses a market opportunity driven by aging infrastructure, escalating climate threats, and rising community stakes. Without decisive grid hardening, annual outage costs are projected to reach $1 trillion by 2040.[2] By combining climate modeling with cost-benefit analysis, Rhizome helps utilities transition from reactive maintenance to proactive resilience planning—a shift that regulators increasingly demand and communities depend on.

# Origin Story

Rhizome is a Washington, DC-based startup that raised $6.5 million in seed funding, with the round led by Base10.[4][5] The company emerged in response to a specific market gap: utilities lacked sharper tools to design for resilience in an era of escalating extreme weather. While detailed founding information and founder backgrounds are not available in the current search results, the company's positioning suggests it was founded by professionals with expertise in climate science, grid infrastructure, and software development who recognized that traditional utility planning methods were inadequate for the climate-driven challenges ahead.

# Core Differentiators

• AI-powered climate modeling: The platform models climate threats across decades, enabling utilities to move beyond historical weather patterns to anticipate future risks.[2]

• High-resolution vulnerability mapping: Rhizome pinpoints asset vulnerabilities at granular levels, allowing utilities to prioritize investments strategically rather than broadly.[1][2]

• Regulatory-grade analysis: The platform delivers "bulletproof cost-benefit analysis" designed to win regulator approval and community support—a critical requirement for utility investment decisions.[2]

• Integrated investment planning: Rather than offering isolated climate or financial tools, Rhizome combines threat modeling, asset assessment, and economic analysis in a single platform, helping cross-functional teams align on investment priorities.[2]

# Role in the Broader Tech Landscape

Rhizome operates at the intersection of three powerful trends: the climate tech boom, the digital transformation of critical infrastructure, and the regulatory shift toward climate-resilient grid planning. As extreme weather becomes more frequent and costly, utilities face mounting pressure from regulators, investors, and communities to demonstrate climate preparedness. Rhizome's timing is advantageous—it arrives as utilities recognize that traditional grid planning is obsolete and as regulatory frameworks increasingly require climate risk assessment.

The company also reflects a broader ecosystem shift toward AI-driven infrastructure optimization. Rather than replacing human expertise, Rhizome augments utility planners with machine learning capabilities that process complex climate and grid data at scale. This positions the company within a growing category of climate tech solutions that target high-stakes, regulated industries where data-driven decision-making directly translates to risk reduction and capital efficiency.

# Quick Take & Future Outlook

Rhizome is well-positioned to capture significant market share in a sector where investment is both urgent and well-funded. The $500 billion utility investment gap and trillion-dollar outage cost projections create a compelling business case for utilities to adopt planning tools that improve capital allocation. As climate regulations tighten and extreme weather events intensify, demand for Rhizome's platform should accelerate.

The company's future likely hinges on three factors: expanding its customer base among major utilities, deepening its climate modeling capabilities as new climate data emerges, and potentially expanding beyond the U.S. market where grid resilience is becoming a global priority. If Rhizome successfully establishes itself as the standard planning platform for utility climate resilience, it could become a critical infrastructure software company with durable competitive advantages rooted in data, regulatory relationships, and switching costs.