Estonian energy startup Fusebox has secured €2.6M in fresh capital to strengthen its European presence. The company, which helps utilities and businesses optimise their energy resources, attracted investment from Czech-based VC firm Soulmates Ventures. SmartCap and existing investors Eneco Ventures and PKO Bank joined the round.
The company’s software platform addresses a growing challenge in Europe’s energy markets. Started in 2014 with manual demand response services for asset owners, the company now helps Europe to get greener and more efficient: as renewable energy sources proliferate, power utilities face increased price volatility and grid imbalances. Fusebox’s can reduce energy imbalances by up to 95%, while helping commercial clients cut energy costs by 35% and boost revenues by 40%.
“We don’t compete with our clients in the ancillary market,” says Tarvo Õng, Fusebox’s founder and CEO. “Instead, we offer them a modular toolkit to build their own flexibility business.” Simply speaking, rather than trading energy directly, Fusebox provides the software tools that allow companies to optimise their energy usage and sell excess capacity back to the grid when profitable. This approach has helped the company expand to 13 markets in just two years, with over 3,600 connected assets across the Nordics and Baltics.
The platform’s appeal lies in its versatility. Companies can use Fusebox’s cloud-based solution to manage various energy assets, from solar parks to storage systems while participating in ancillary markets for additional revenue. This is particularly relevant as businesses seek ways to integrate renewable energy sources and meet sustainability targets. Estonia, which is in the top spots when it comes to energy transition, gets more and more green energy installations every year.
SmartCap’s CEO Sille Pettai, whose organisation is backed by the EU’s NextGenerationEU program, points to the broader environmental impact: “Their solution enables CO2 reduction by optimising energy use and integrating renewable energy assets, energy storage, and demand response.”
The funding follows Fusebox’s previous round in December 2022, which was led by Dutch energy supplier Eneco’s venture arm and Poland’s PKO Bank Polski. The new capital will support the company’s expansion plans, product development, and recruitment efforts across European markets.
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