David Energy, a leading innovator in the gridtech space, has announced a significant milestone: $23 million in funding to transform the retail energy market and accelerate the transition to a cleaner, more resilient energy grid. The investment round was led by Cathay Innovation, with participation from existing investors like Union Square Ventures, Keyframe Capital, Equal Ventures, and BoxGroup. This latest investment fuels David Energy’s ambitious mission to run the grid 24/7/365 on clean energy.
The urgency for a more reliable and affordable energy grid is growing amidst an aging infrastructure, unpredictable weather patterns, and rising electricity demand. While renewable energy sources like solar and wind are now the most cost-effective power options, their intermittent nature poses a challenge for widespread adoption. David Energy, named for its empowering approach to customer-driven energy solutions, is building the solution: a distributed network of connected devices – think batteries, solar panels, electric vehicles, and smart thermostats – that can seamlessly respond to the fluctuations of clean energy generation in real-time.
Beyond its technological innovation, David Energy is also modernizing the customer experience. The energy industry, often shrouded in complexity and opaqueness, can be intimidating for many. David Energy, with its vertically-integrated solution, aims to provide transparency and clarity for consumers. They guide customers through the intricacies of energy choices, offering a platform that simplifies the process.
Since its inception in 2019, David Energy has launched both residential and commercial electricity solutions. Following its Series A funding in March 2022, the company scaled its commercial offering, an energy spend management platform for multi-unit businesses, from serving solely New York to now encompassing over 1,000 locations across New York, New Jersey, Massachusetts, and Texas. This commercial business has experienced remarkable growth, expanding 198% year-over-year and attracting over 60 new brands, including renowned names like Equinox, Wing Stop, Subway, and Orangetheory. Furthermore, the company launched its residential offering in Texas, providing EV and battery owners with increased control and return on investment.
The number of devices connected to the David Energy network has grown tenfold since last year, showcasing the growing adoption of its innovative solutions. The newly secured funding empowers the company to continue scaling both its business lines in existing states and to begin expanding across the Northeast and Mid-Atlantic regions.
This expansion strategy is underpinned by David Energy’s long-term vision: decarbonizing the energy sector, the leading contributor to climate change, by becoming the operating system of a 100% clean energy grid. By acquiring both residential and commercial customers, David Energy is building a customer base that naturally aligns with the availability of renewable energy sources and the controllable capacity needed to smooth out fluctuations. This will ultimately lead to greater ROI and control for both homes and businesses, while also delivering cheaper and more reliable energy.
“The core challenge in operating modern grids is managing the volatility brought on by renewables,” said James McGinniss, CEO of David Energy. “No grid operator, retailer, or vertically integrated utility across the globe has solved this problem, and that’s precisely what we intend to do. Since renewables are essentially free when they’re producing, there is a massive opportunity to supply structurally cheaper power to customers. This investment gives us the capital we need to validate this opportunity and our approach to decarbonizing the grid.”
“David Energy is completely redefining what it means to be a retail energy provider with a modern, tech-forward and vertically integrated approach designed for the clean energy era,” said Simon Wu, Partner with Cathay Innovation. “They’ve demonstrated strong, repeatable growth and stickiness, particularly with the underserved segment of small commercial businesses, led by a team that combines deep energy market expertise and technical product leadership which are critical elements for success. David Energy is primed to scale and we’re thrilled to support James and the team on the journey ahead.”
David Energy will be hosting an event on September 23rd, 2024 at Climate Week NYC to discuss the steps needed to achieve a 24/7/365 clean energy grid. For more information, visit bit.ly/cleanenergygrid.
About David Energy:
David Energy is a technology-driven retail energy provider (REP) dedicated to powering the grid with clean energy 24/7/365. By building a network of connected devices that respond to the fluctuations of clean energy generation in real-time, it is decarbonizing the energy sector, the primary contributor to climate change. Currently, David Energy provides electricity to residents in Texas and multi-unit businesses in New York, New Jersey, Massachusetts, and Texas. Since its launch in 2019, David Energy has raised $50 million from venture capital and strategic investors. For more information, visit davidenergy.com.
