David Energy Raises $ 19 Million in New Funding to Start a New Kind of Electricity Company

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David Energy is an electricity company whose software platform analyzes and controls customer demand in real time. By integrating with devices in customer homes and buildings such as battery storage, EV chargers, smart thermostats, solar and more, and using these devices directly in the electricity markets, David Energy enables customers to buy and deliver electricity far cheaper and more efficiently than established providers. Their software-driven approach brings transparency and simplicity to an opaque, standardized industry.

David Energy, a novel electricity company, today announced the completion of a new $ 19 million financing. The new capital includes a $ 4.1 million seed round led by Equal Ventures and a $ 15 million working capital facility from Hartree Partners, a global commodities trading company specializing in energy and its related industries . Other seed capital investors include Operator Partners, Box Group, Greycroft, Sandeep Jain and Xuan Yong from RigUp, returning angel investor Kiran Bhatraju from Arcadia, and Jason Jacobs’ recently launched MCJ Collective, an early-stage climate-tech fund.

David Energy is an electricity company whose software platform analyzes and controls customer demand in real time. By integrating with devices in customer homes and buildings such as battery storage, EV chargers, smart thermostats, solar and more, and using these devices directly in the electricity markets, David Energy enables customers to buy and deliver electricity far cheaper and more efficiently than established providers. Their software-driven approach brings transparency and simplicity to an opaque, standardized industry.

“We intend to build the standard renewable energy oil, and the first step in vertical integration is to become a supplier,” said James McGinniss, Co-Founder and CEO of David Energy. “Renewable energy producers differ fundamentally in their variable, distributed and digitally native nature compared to their fossil fuel predecessors, while customer loads such as heating and driving shift to electricity consumption from gas. The sands of market power are shifting and the established companies are us ill-positioned to adapt to changing customer needs, so we have a tremendous opportunity to capitalize on it. ”

David Energy’s software platform, Mycor, and the personalized approach to power contracts take a different approach with unparalleled control and visibility while solving many of the problems associated with moving to distributed and variable power sources. By leveraging building demand data and the assets the building has, Mycor can intelligently shift user consumption to the times when renewable energy is most available and cheapest.

“We are at a turning point in the climate crisis and finding ways to use buildings smarter and more efficiently is a critical step,” said Rick Zullo, partner at Equal Ventures. “David Energy is at the forefront of this movement removing the friction and cost of modern energy generation, storage, management and supply.”

Co-founders James McGinniss, Brian Maxwell and Ahmed Salman founded David Energy in 2019 to create a new breed of energy provider. The trio is joined by two new employees, Chaitu Parikh, former COO at Crius Energy, and Abhi Mandhana, Vice President of Supply Optimization at EDF Energy North America.

“David Energy’s mission to empower customers to make the grid cleaner, cheaper and more resilient is exactly the disruption the energy market needs to meet customer and environmental demands,” said Zach Weinberg, partner at Operator Partners . “James McGiniss and his team are incredibly talented, ambitious, and thoughtful as they continue to develop solutions that modernize the energy industry. And if they get it right, they will build a huge business.”

By working with Hartree, David Energy combines traditional raw material purchasing with the new, advanced technology platform. The partnership is a key gateway for David Energy to do business in the energy markets and provides the balance sheet for the working capital to buy energy on behalf of David Energy’s customers. David Energy plans to use the additional funding to bring its offering to the northeastern markets and rapidly expand its customer base.

“Renewable energies are fundamentally changing energy markets and new models and tools need to emerge,” said Dinkar Bhatia, co-head of North American Power at Hartree Partners. “James and the team recognized a significant opportunity in the marketplace and implemented the right strategy. Hartree is excited to be a raw materials partner to David Energy in the launch of the new smart retail platform and looks forward to supporting DE Supply the leading retailer in the market. ”

Since David Energy’s $ 1.5 million pre-seed in March 2020, the company has launched its product, secured its first customer portfolio, and obtained power licenses for retail in New York, New Jersey, and Massachusetts. Co-founder James McGinniss was also recognized as the 2021 Forbes 30 Under 30 Listing.

About David Energy

David Energy is a novel retail utility company whose software-driven approach drives costs down while simplifying the energy management process. The company’s solutions provide cheaper, cleaner and more resilient energy while giving customers control over their entire energy strategy. More information is available at: www.davidenergy.com

About Equal Ventures

Equal Ventures Management, LLC, is a seed-stage venture fund based in New York, NY that invests in early-stage companies in the insurance, logistics, retail infrastructure, and care industries. Equal Ventures is focused on helping founders and companies disrupting existing markets. Your goal is to identify possible solutions for the market before it becomes obvious. www.equal.vc

About Hartree Partners

Hartree Partners is a raw materials trading company specializing in energy and related industries. Hartree was founded in 1997 and now has a global reach of 14 offices and over 100 dealers. The company’s rigorous research, analytical approach and corporate culture have contributed to its strong track record and growth over this period. Hartree Partners is owned by the company’s managing partners, senior management and Oaktree, an alternative investment firm with over $ 140 billion in assets under management. www.hartreepartners.com




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