Berlin-based Frequenz, which has developed a unique AI-based solution to cut grid electricity consumption and costs for corporate energy users has successfully closed a Series A financing round totaling €13M.
As a new investor, Amsterdam-based venture fund, SET Ventures joins the board, having built a track-record of investing in digital technologies for a carbon-free energy system since 2007. Additional funding comes from Payback founder Alexander Rittweger, as well as existing investor 468 Capital.
The founding team of Frequenz who previously built and successfully exited a real-time trading business with Sociomantic, also invests several million Euros into this round.
Frequenz’ solution is revolutionary – it uses AI to predict market prices and individual energy consumption and then optimizes user consumption and production by integrating assets like batteries and solar arrays. This ultimately leads to a significant (typically 30% and beyond) reduction of grid electricity consumption and costs. Additionally, it turns passive electricity consumers into active prosumers. Meaning customers not only consume but also produce electricity, making them more independent from market volatility, which in turn further reduces electricity costs, procurement risks and CO2 emissions significantly.
In the past 18 months, the product has passed the proof-of-concept stage after completing successful projects with large partners like supermarket chains Edeka and Netto and is now being implemented at German Mittelstand companies like Freudenberg and Göing. These projects showcased and even surpassed expected savings targets, ultimately confirming the potential of Frequenz’ business model.
The proceeds of the Series A round will now be used to accelerate the platform’s roll-out in Europe, and given the recent volatile spikes in energy pricing, the timing of the product could not be better. Corporate energy users gain an increasingly secure energy supply which powers an unprecedented grid consumption and cost saving of over 30% in most use cases.
“We have got the expertise to develop a global market leader. We did it once, we can do it again. We believe that we as a team can make a difference and overcome the biggest obstacles,” emphasizes Thomas Nicolai, co-founder and managing director of Frequenz.
Dr. Till Stenzel, Venture Partner at SET Ventures and incoming Frequenz Advisory Board member notes: “Frequenz has developed a highly scalable solution that distills the huge complexity of operating microgrids into an easily understood and highly competitive commercial product. We are looking forward to working with the Frequenz team, which brings a fresh and pragmatic approach to the industry, transferring the learnings from managing and processing large data volumes in a separate industry to the energy world.”
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Carlos de Brito