Qnetic, a company developing long-duration flywheel energy storage systems (FESS), has raised $5 million in a recent funding round.
Combined with a $2.1 million equity crowdfunding campaign completed last year, the company has secured a total of $7.1 million in funding over the past 12 months. Earlier RegCF investors have seen approximately 25% asset appreciation following the conversion of their investment to equity.
The company states that its flywheel energy storage systems are solid-state mechanical batteries designed to address limitations associated with electrochemical alternatives.
According to Qnetic, the newly raised capital will be used to support fitting out its California manufacturing facility for low-volume production of its Q500 FESS. The funding will also support multiple utility-scale and commercial pilot projects in the U.S. and international markets.
“We are very pleased to receive this significant amount of new funding, following an enthusiastic response to our earlier public offering,” said Michael Pratt, Qnetic co-founder and CEO. “It’s clear that the market is ready for a truly innovative energy storage solution, one that’s made in the U.S. of metals, magnets, and carbon fiber, with no mineral or supply chain bottlenecks. We look forward to ramping up development and production and fielding our first systems this year.”
The company is also planning to use the funding to expand field testing and validation work with partners, including EPRI and the National Lab of the Rockies, over the next 18 to 24 months.
According to Mercom’s Annual and Q4 2025 Funding and M&A Report for Energy Storage report, VC funding in the Energy Storage sector in 2025 increased 30% YoY, to $4.8 billion across 75 deals, up from $3.7 billion across 84 deals in 2024.
In September 2025, Torus, a Utah-based energy storage solutions provider, secured a $200 million investment from Magnetar, an alternative asset manager, to accelerate the deployment of its modular hybrid power plant solutions.
