David Energy, an electricity supplier whose software platform analyzes and controls customer demand in real-time, raised $20.5 million in a Series A funding round.
The funding round was led by Keyframe Capital and Union Square Venture (USV)’s climate fund.
As part of the funding, Keyframe Capital’s Ben Birnbaum will join the board, and USV’s Rebecca Kaden will join as an observer.
Additional investors participated in the round including existing seed investors -Equal Ventures, Box Group, MCJ Collective, new investors – Toba Capital, Turntide, James Dice, and others.
According to David Energy, its technology analyzes and controls customer demand by integrating with customers’ energy devices (e.g., smart thermostats, EV chargers, backup generators, batteries, and solar systems).
Leveraging these distributed energy resources directly into electricity markets, the company buys and delivers power to customers more efficiently than incumbent providers. The company’s software-driven approach introduces transparency and modernity into a traditionally opaque, commoditized industry. It defies legacy approaches by aligning its incentives with its customers through sharing in the savings the platform generates.
“We will deploy this capital to rapidly scale up our SMB offering in New York, expand our service offering into Texas, and launch our beta residential offering across both markets,” commented James McGinniss, Co-Founder and CEO of David Energy.
In Q1 2021, David Energy closed $19 million in funding from Equal Ventures, Hartree Partners, Operator Partners, Box Group, Greycroft, Sandeep Jain, Xuan Yong, Kiran Bhatraju, and MCJ Collective.
Including the latest funding round, David Energy has raised $40 million funding to date.
According to Mercom Capital Group’s 2021 Q4 and Annual Funding and M&A report for Storage, Grid & Efficiency, smart grid companies raised $1.2 billion in VC funding in 35 deals in 2021, a 55% increase compared to $748 million raised in 38 deals in 2020.