Grid Edge, a company based out of Birmingham specializing in AI software that optimizes energy usage in commercial buildings, has raised over €3.3 million in funding, which will be used to expand the company’s workforce as well as further service their current platform and develop it further. The platform assists businesses in decreasing their consumption of energy and cost simultaneously.
Investors Back Green Tech: Funding Overview
The funding of €3.3 million was raised from various sources, including the Midlands Engine Investment Fund II, Mercia Ventures, Centrica, and bp Ventures, along with some private investors. This varied group of funders illustrates a sophisticated importance placed on Grid Edge and their solution toward energy management.
A Mission to Simplify: Grid Edge’s Core Focus
Paul McCorquodale, the CEO of Grid Edge, articulated the company’s central motto: “Our mission is to simplify the complex world of energy and building management systems, empowering building operators to reduce carbon emissions and save money.” This highlights the essence of their service, which is to offer sustainability while providing financial savings.
Rapid Growth: Hitting Demand Targets
As Grid Edge seeks to achieve tangible outcomes, its focus on results has created a tremendous surge in demand for its platform. Business has enjoyed incredible growth, achieving a 150% increase in Annual Recurring Revenue (ARR) over the previous year. This growth trajectory is expected to persist, with near-term projections estimating ARR will nearly triple in the next two years. The company also intends to increase its reach by growing the number of locations utilizing its platform from 120 to 400 in the same period.
Real-World Impact: Notable Clients
Grid Edge sponsors many expensive developments that prove the capabilities of their platforms, like designing and installing major systems. Other users include the London Royal Opera and Bull Ring shopping center, as well as Bolsover, Amey, Equans, and OCS. These partnerships highlight the platform’s effectiveness in addressing operational complexity and their diverse needs.
Data: The Untapped Resource—AI Optimization
The Grid Edge platform functions by generating intelligence from data obtained from building meters, sensors, and management systems, combining it with external data like energy tariffs and weather forecasts. Machine learning algorithms are used to analyze the data and build a comprehensive model of the operational activities and energy expenditures of the building. Such analytics enable the platform to issue intelligent recommendations to optimize the energy performance of systems and subsystems of the building.
Monetary Gains—Savings and Reduction in Carbon Footprint
Grid Edge claims their platform users are able to receive substantial value, including an average yearly 20% reduction in energy costs and carbon emissions. The company also claims that clients realize their ROI in an average of 6 months, proving the attractiveness and financial benefits of the solution.
Local and National Sponsorship: The Midlands Engine Investment Fund II
Beth Bannister, Senior Investment Manager at the British Business Bank, emphasized the impact of local investment towards supporting Grid Edge’s growth. “The Midlands Engine Investment Fund II was set up to assist innovative and growing businesses in the Midlands region like Grid Edge,” Bannister said. “This latest investment from the fund will ensure that this very ambitious business continues its remarkable growth and also makes a significant impact on the region’s economy and collective journey towards Net Zero.”
Expected Advancements: Hiring and Advancing the Platform
This funding increase, which is still pending clearance under the NSIA, will help Grid Edge convert a greater number of customers and improve their platform. Strategically, the company intends to recruit further, bolstering the headcount by 15 in the sales, customer support, and technical job functions, thereby aiding in employment and economic advancement.
Investing Confidence: A Response to an Escalating Demand
Rafael Joseph from Mercia Ventures uses astonishing confidence in describing Grid Edge’s trajectory and confidence: “With the ability to help customers lower their operational expenses while meeting cost reduction goals, Grid Edge is helping to address a key pain point.” Additionally, Joseph indicated that future changes in energy tariffs, where the prices will be more volatile throughout the day, will lead to greater adoption of Grid Edge’s platform. Also, tightening carbon emission cap-and-trade systems will increase the need for business reporting windows that provide solutions for emission tracking and reduction.
Legal Counsel: Facilitation of the Investment
Shakespeare Martineau, with Mayhew and McGrath, provided legal counsel to Mercia Ventures during this round of funding, illustrating the investment’s professional backing and support.
Final Thought: Grid Edge as a Contribution to the Sustainable Energy Transition
dustryThe growth of Grid Edge and the funding garnered to sustain that growth showcase the industry’s responsive nature—it mitigates the demand gap for reliable, energy-efficient, and sustainable technology. Navigating the ‘smart’ energy technology landscape will benefit from sustained investment tracked through the AI-enabled operations platform of the company.
