Tesseract, a vertically integrated company that purchases energy from generators at fixed prices and then offers it to consumers, raised $78 million to buy and build selected renewable energy assets and support the development of its platform. The round was co-led by Balderton and Lakestar, with additional participation from Accel, Creandum, Lowercarbon, Ribbit, and BoxGroup, along with several strategic angels.
“The energy industry plays a fundamental role in people’s lives yet regularly leaves customers dissatisfied. It is ripe for disruption in the same way as the banking sector was,” commented Alan Chang, co-founder and CEO at Tesseract.
As a vertically-integrated business, the company cuts out the mediators of the energy market by owning renewable generator assets and selling directly to consumers. Instead of needing to install expensive solar panels, customers can buy a ‘virtual’ solar panel or wind turbine on the app, helping to cut their bills significantly and allowing them to capitalize on selling the excess energy. Using co-located grid-scale batteries, the company can also effectively manage energy flexibility.
“As Europe enters a critical phase for energy, and the world urgently confronts a warming planet, brave solutions are required. Tesseract’s combination of renewable power and a new model for energy and participation can help us confront these dual challenges without slipping further back into fossil fuels,” said Colin Hanna, Partner at Balderton.
According to Mercom’s 1H and Q2 2022 report, in 1H 2022, venture capital (VC) funding activity rose 125% with $3.7 billion in 53 deals compared to the $1.6 billion raised in 26 deals in the first half of 2021. Last Month, Gridserve, a sustainable energy company, announced a £200 million (~$243 million) investment from Infracapital, the infrastructure equity investment arm of M&G. The investment will accelerate the company’s Sun-to-Wheel model, which encompasses generating energy through hybrid solar farms and distributing power through a national charging network.