David Energy Secures $19 Million In New Financing To Launch A New Kind of Electricity Supplier
BROOKLYN, N.Y.–(BUSINESS WIRE)–David Energy, a new kind of electricity supplier, today announced the close of $19 million in new financing. The new capital includes a $4.1M Seed round led by Equal Ventures and a $15 million working capital facility from Hartree Partners, a global merchant commodities firm specializing in energy and its associate industries. Additional seed investors include Operator Partners, Box Group, Greycroft, Sandeep Jain and Xuan Yong of RigUp, returning angel investor Kiran Bhatraju of Arcadia, and Jason Jacobs’ recently launched MCJ Collective, an early-stage climate tech fund.
David Energy is an electricity supplier 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 leveraging those devices directly into electricity markets, David Energy is able to buy and deliver power to customers far cheaper and more efficiently than incumbent providers. Their software driven approach introduces transparency and simplicity to an opaque, commoditized industry.
“We intend to build the Standard Oil of renewable energy, and the first step of vertical-integration is becoming a supplier,” said James McGinniss, Co-Founder and CEO of David Energy. “Renewable energy generators are fundamentally different in their variable, distributed, and digitally-native nature compared to their fossil fuel predecessors, while customer loads like heating and driving are shifting to electricity consumption from gas. The sands of market power are shifting and incumbents are poorly positioned to adapt to evolving customer needs, so there’s a massive opportunity for us to capitalize.”
David Energy’s software platform, Mycor, and personalized method to energy supply contracts take a different approach with unprecedented control and visibility while addressing many of the problems inherent in the shift to distributed and variable sources of electricity. By leveraging building demand data and the assets the building has at its disposal, Mycor can intelligently shift user consumption to the times when renewable power is most available, and cheapest.
“We are at an inflection point in the climate crisis, and finding ways to make buildings smarter, more efficient users of energy is a pivotal step we must take,” said Rick Zullo, Partner at Equal Ventures. “David Energy is at the forefront of that movement, removing the friction and cost of having 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 kind of energy provider. The trio are joined by two new hires, Head of Retail Chaitu Parikh, former COO at Crius Energy, and Vice President of Supply Abhi Mandhana, former Director of Portfolio Optimization at EDF Energy North America.
“David Energy’s mission of empowering customers to make the grid cleaner, cheaper, and more resilient is exactly the disruption the energy market needs in order to match customer and environmental needs,” said Zach Weinberg, Partner at Operator Partners. “James McGiniss and 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’ll build a massive business.”
By working with Hartree, David Energy is fusing traditional commodity buying with the new, their advanced technology platform. The partnership is a critical gateway for David Energy to transact in energy markets, providing their balance sheet for working capital to purchase energy on behalf of David Energy’s customers. David Energy plans to use the additional financing to bring its offering to the Northeast markets and rapidly expand its customer footprint.
“Renewables are causing fundamental shifts in 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 have identified a significant opportunity in the market and have the right strategy to execute. Hartree is excited to be a commodity partner with David Energy on the launch of the new smart retail platform and is looking forward to helping make DE Supply the premier 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 portfolio of customers, and obtained retail electricity licenses in New York, New Jersey, and Massachusetts. Co-founder James McGinniss was also recognized as a 2021 Forbes 30 Under 30 listing.
About David Energy
David Energy is a new kind of retail electricity provider whose software-driven approach slashes costs while simplifying the energy management process. The company’s solutions bring cheaper, cleaner, more resilient power while providing control to customers over their entire energy strategy. For more information, please visit: 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 within the insurance, logistics, retail infrastructure and the care economy industries. Equal Ventures focuses on backing the founders and businesses that are disrupting legacy markets. Their goal is to identify potential solutions to the market before it’s obvious. www.equal.vc
About Hartree Partners
Hartree Partners is a merchant commodities firm specializing in energy and its associated industries. Founded in 1997, Hartree now has a global reach spanning 14 offices and over 100 traders. The company’s rigorous research, analytical approach, and entrepreneurial culture have contributed to its strong track record and growth over that time. Hartree Partners is owned by the company’s managing partners, senior management, and Oaktree, an alternative investment firm with over $140 billion of assets under management. www.hartreepartners.com
Contacts
Bubba Gramkow | bubba@bevelpr.com