David Energy, a pioneering gridtech company, has raised $23 million in its latest funding round to transform the retail energy market and drive the transition to a 100% clean energy grid. The round was led by Cathay Innovation, with contributions from existing investors Union Square Ventures, Keyframe Capital, Equal Ventures, and BoxGroup. This new funding will accelerate David Energy’s mission to operate the grid continuously on clean energy sources.

With growing concerns over an aging electrical grid, increasing weather volatility, and frequent power outages, the demand for a more resilient and cost-effective energy infrastructure has intensified. Clean energy sources such as solar and wind have become the most affordable forms of power but face challenges due to their intermittent nature. David Energy is addressing this problem by creating a distributed network of connected devices, including batteries, solar panels, electric vehicles (EVs), and smart thermostats. These devices can respond to fluctuations in clean energy production in real time, making the grid more reliable and efficient.

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As a tech-driven retail electricity provider (REP), David Energy is also reshaping the consumer experience in an industry notorious for its complexity and lack of transparency. The company’s vertically integrated solution simplifies energy management for consumers, offering clear insights and guidance while handling the technical details in the background.

Founded in 2019, David Energy has rapidly scaled its offerings. After its Series A funding in March 2022, the company expanded its commercial energy spend management platform from New York to over 1,000 locations across New York, New Jersey, Massachusetts, and Texas. Its customer base includes well-known brands like Equinox, Wing Stop, Subway, and Orangetheory, contributing to a 198% year-over-year growth. Additionally, David Energy launched a residential service in Texas, offering EV and battery owners greater control and returns on their investments. The number of connected devices on its platform has increased tenfold in just one year.

The new funding will support David Energy’s continued growth across its active markets and enable expansion into the Northeast and Mid-Atlantic regions. The company’s long-term vision is to decarbonize the energy sector by becoming the operating system of a fully clean energy grid. By acquiring residential and commercial customers who naturally align with renewable energy production, David Energy is building a network that balances the grid’s supply and demand in real-time.

James McGinniss, CEO of David Energy, highlighted the core challenge: “No grid operator, retailer, or utility has solved the problem of managing the volatility brought on by renewables. With this investment, we aim to show that our approach can decarbonize the grid while supplying cheaper and more reliable power to customers.”

Simon Wu, Partner at Cathay Innovation, praised the company’s vision: “David Energy is redefining what it means to be a retail energy provider with a modern, tech-forward approach. They’ve shown impressive growth, especially among small commercial businesses, and have the leadership needed to scale in the clean energy era. We’re excited to support them on this journey.”

With this latest round of funding, David Energy is poised to play a crucial role in modernizing the grid and making clean energy more accessible and affordable for everyone.