8 September 2022

Tesseract secures $78m from Balderton and Lakestar to build its renewable energy platform.

The round was led by Balderton Capital and Lakestar with backing from a broad syndicate of funds and angel investors.

$78.0M

≈ £67.7M at $1 = £0.8681 on 8 Sep 2022

A London-based energy startup building a vertically integrated platform to supply cheaper renewable electricity directly to consumers.

Tesseract has raised $78m in funding led by Balderton Capital and Lakestar to expand its renewable energy platform and acquire green assets. The round drew participation from Accel, Creandum, Lowercarbon Capital, Ribbit, and BoxGroup, alongside prominent angel investors including Tom Stafford, Martin Mignot, Chris Sacca, John Doran, and Nico Rosberg.

Founded earlier this year by former Revolut executives Alan Chang and Charles Orr, the London-based company bypasses traditional energy market intermediaries. By owning renewable generation assets and offering virtual solar panels and wind turbines through its application, the firm aims to lower household utility bills and broaden access to clean power.

The fresh capital will be deployed to accelerate platform development and secure selected renewable energy infrastructure. The founders intend to apply technological innovation to an energy sector they argue has long suffered from inefficient business models and inadequate green investment.

From the founder

"We started an energy company because it can solve two of the world’s greatest problems: rising energy prices and climate change. While at Revolut, we saw how ageing incumbents and broken business models held the system back and how modern technology and an open-minded approach helped consumers worldwide. The energy industry plays a fundamental role in people’s lives yet regularly leaves customers dissatisfied. It is ripe for disruption in the same way as the banking sector was."

Alan Chang

Co-founder and CEO at Tesseract

Investor perspective

"As Europe enters a critical phase for energy, and the world urgently confronts a warming planet, brave solutions are required. Tesseract’s combination of renewable power and a new model for energy and participation can help us confront these dual challenges without slipping further back into fossil fuels. Alan and Charles are two iconoclasts who have proven themselves capable of reshaping industries during their time at Revolut. We are humbled to support them and the entire team at Tesseract."

Colin Hanna

Partner, Balderton