Energy Storage Firm Cactos Raises $2.6 Million in Equity and Debt Funding

Cactos, a Finland-based producer of smart energy storage systems, raised a total of €2.5 million (~$2.6 million) in equity and debt funding.

The round was led by Superhero Capital, with participation from Cactos’s founders.

The company intends to use the funds to increase energy storage unit production, expand production facilities, and participate in international projects.

Cactos operates a fleet of distributed energy storage systems based on smart energy storage units and cloud computing services.

Their energy storage unit− Cactos One, is made from re-used Tesla EV batteries. The EV battery modules are disassembled, inspected, tested, and converted into 100 kWh energy storage units at the Cactos factory in Finland.

The systems are optimized using the company’s algorithmic-based cloud computing service, which also provides grid-optimizing services by automatically discharging energy into the grid. If there is excess production, the units absorb energy.

“There is an acute need for smart energy storage systems to support the global transition to a greener world. With the novel business model and technology Cactos has introduced, businesses can profitably contribute to this transition,” said Jussi Pyörre, Partner at Superhero Capital.

Cactos has started partnerships with large organizations in Finland, such as power utility Oomi and Helsinki City Housing Company.

“On the ground, companies are concerned about electricity supply and market volatility. The coming winter will clearly be a very difficult one, but the longer-term outlook with energy transition and temporal imbalance in supply and demand means there is a huge need for demand response and different ways to store energy,” commented Oskari Jaakkola, CEO and founder of Cactos.

Last week, UgoWork, a Canada-based provider of lithium-ion batteries and energy monitoring solutions, announced the closing of its all-equity C$22.8 million (~$17.08 million) Series B funding round led by Fonds de solidarité FTQ.

According to Mercom’s Funding and M&A Report for Storage, Grid & Efficiency, venture capital funding for energy storage companies in 9M 2022 fell by over 44%, with $4 billion in 73 deals compared to $7.2 billion in 60 deals in 9M 2021.