Axle Energy, an energy flexibility platform that links distributed assets with energy markets, has raised €8.3 million in seed money, to expedite its goal of grid decarbonization.
With participation from current investors Picus Capital and Eka Ventures, Accel led the round.
Several well-known angel investors also took part, including Formula 1 World Champion and sustainability entrepreneur Nico Rosberg, Amit Gudka (founder and CEO of Field Energy), Sierra Peterson (founder of Voyager Ventures), and Hanno Renner (founder and CEO of Personio).
Axle Energy will use the fresh funding to expand the team and promote ongoing expansion throughout the European energy market. With this seed round, the company has raised approximately €9.2 million in total.
The least expensive electricity in history can be obtained from renewable energy sources like solar and wind, but they are difficult to manage. To satisfy the needs of the electricity grid at its peak, they rely on erratic local weather patterns that are not always predictable. Therefore, as nations remove fossil fuels from the energy mix, they search for alternative strategies to balance supply and demand, without relying on exact control over energy production.
Grid Decarbonization Strategy:
The software platform offered by Axle Energy offers a carbon-free way to enable quick modifications to energy consumption in response to grid demands. To integrate these products and their customers with local and national energy markets, the platform assists energy suppliers and manufacturers of flexible assets, such as electric vehicles (EVs), chargers, home batteries, and heat pumps. These assets are connected, have energy storage capabilities, and can be turned on and off at will. Consequently, Axle Energy offers end users a technology-first strategy for grid decarbonization, boosting resilience, and reducing costs. Furthermore, with over 15,000 flexible assets linked to energy markets, the business has already connected over 85 MW of capacity.
The company was founded in 2023. The founders personally saw the problems with the current system and recognized that distributed flexible assets could play a significant role in the solution. With the help of this seed capital, Axle Energy will be able to grow both domestically and internationally, especially in light of the UK government’s recent commitment to provide zero-carbon electricity by 2030 and the EU’s ongoing long-term strategy to achieve carbon neutrality by 2050.
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Karl Bach, CEO and co-founder of Axle Energy, said:
“Millions of people have assets in their homes that can stabilize the power grid, save them money on their energy bills, and help us pivot away from fossil fuels. For these gadgets to serve as the foundation of the energy system of the future, we at Axle Energy are connecting them to flexibility markets. The UK government has promised to completely rebuild the electrical grid and make it less carbon-intensive. The last few years have demonstrated the costly risk of continuing to rely solely on fossil fuels. Moreover, with the support of this additional funding, we will be able to fulfill the growing demand for flexible power sources and move closer to eliminating fossil fuels from the grid.”
Manufacturers may increase their revenue by using Axle’s platform to connect with new flexible markets and boost sales. Moreover, the company has recently partnered with forward-thinking manufacturers like SolarEdge, myenergi, Pod Point, and GivEnergy to assist them in offering clean flexibility to the grid and giving their consumers credit for contributing to this effort.
Zhenya Loginov, Partner at Accel, stated:
“Karl and Archy have a wealth of experience in the energy sector, and their vision for rebuilding the grid in favor of renewable energy sources is truly exciting – and necessary. Major manufacturers are already using their user-friendly software platform, demonstrating their great early traction. We proudly support Axle Energy in their ongoing expansion.”
