David Energy, a retail energy provider whose software platform analyzes and controls customer demand in real-time, raised $23 million in funding. This funding was led by Cathay Innovation, with participation from existing investors, including Union Square Ventures, Keyframe Capital, Equal Ventures, and BoxGroup, among others.
This latest funding round enables the company to continue scaling both business lines in its active states and begin expanding across the Northeast and Mid-Atlantic. David Energy currently serves the electricity needs of residents in Texas as well as multi-unit business owners in New York, New Jersey, Massachusetts, and Texas.
In 2022, the company raised $20.5 million in a Series A funding round led by Keyframe Capital and Union Square Venture (USV) ‘s climate fund. As per the release, David Energy has raised $50 million from venture capital and strategic investors since its launch in 2019.
“No grid operator, retailer, or vertically integrated utility across the globe has solved this problem, and that’s precisely what we intend to do. Since renewables are essentially free when they’re produced, there is a massive opportunity to supply structurally cheaper power to customers. This investment gives us the capital we need to validate this opportunity and our approach to decarbonizing the grid.” said James McGinniss, CEO of David Energy.
David Energy aims to become the operating system for a clean energy grid by managing a distributed network of connected devices that respond to the fluctuations of clean energy generation in real-time, 24/7. The company plans to sync customer demand with the availability of renewable supply in real time.
Since renewable energy is intermittent, the company plans to acquire customers that align with when renewables are produced, then use any form of controllable generation, shiftable demand, or energy storage to cover any remaining mismatches.
According to Mercom’s 1H and Q2 2024 Funding and M&A report for Energy Storage and Smart Grid, VC funding for Smart Grid companies in 1H 2024 totaled $1.2 billion in 29 deals, 22% higher YoY compared to $986 million raised in 26 deals in 1H 2023.
