Who knew betting on the weather could make a billion dollars? It just did for The Climate Corporation, which underwrites weather insurance for farmers. Monsanto broke the news this morning that it was buying Climate for approximately $930 million. The idea is to sell more data and services to the farmers who already buy Monsanto’s seed and chemicals. Climate (formerly known as Weatherbill) has raised $107 million from a plethora of backers since it began fund raising in 2007. Its biggest investors include Khosla Ventures, New Enterprise Associates, Google Ventures, Index Ventures and Founders Fund.
Climate’s cofounders were early Google employees who saw a self-service approach to weather insurance, which had previously been sold in custom, over-the-counter negotiations. Clients go to its site and outline what range of temperatures and/or rainfall they want protection from, for a set period of time.