Frequenz, an AI-based energy management solutions provider, announced the successful closing of a Series A financing round totaling €13 million (~$12.8 million).
The funding was provided by Amsterdam-based venture fund SET Ventures, which also joined the company’s board, with additional funding coming from Payback founder Alexander Rittweger and existing investor 468 Capital.
Frequenz’s solution uses AI to predict market prices and individual energy consumption and then optimizes user consumption and production by integrating assets like batteries and solar arrays. According to the company, this ultimately leads to a significant (typically 30% and beyond) reduction in grid electricity consumption and costs.
In the past 18 months, their product has passed the proof-of-concept stage after completing successful projects with partners like supermarket chains Edeka and Netto and is now being implemented at German Mittelstand companies like Freudenberg and Göing.
The proceeds of the Series A round will be used to accelerate the platform’s roll-out in Europe.
“Frequenz has developed a highly scalable solution that distills the huge complexity of operating microgrids into an easily understood and highly competitive commercial product,” said Dr. Till Stenzel, Venture Partner at SET Ventures and incoming Frequenz Advisory Board member.
The founding team of Frequenz, who built and successfully exited a real-time trading business with Sociomantic, also invested several million Euros into this round.
This week, LineVision, a U.S.-based provider of overhead line monitoring for electric utilities, announced closing its $33 million Series C financing round to accelerate the global growth of its grid enhancing technology platform.
According to Mercom’s 1H and Q2 2022 Funding and M&A Report for Storage, Grid & Efficiency, VC funding in Smart Grid companies in 1H 2022 was 58% higher, with $731 million compared to the $463 million raised in 1H 2021.