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Former Revolut alum scoops $78M for web3 energy startup

Image credits: Tesseract

Tesseract, a London-based new energy company from Revolut alumni, has raised $78M in funding led by Balderton Capital and Lakestar. 

The round also included participation from Accel, Creandum, Lowercarbon Capital, Ribbit, and BoxGroup, along with strategic angels such as Tom Stafford (DST Global), Martin Mignot (Index Ventures), Chris Sacca (Lowercase and Lowercarbon Capital), John Doran and Nico Rosberg (Formula 1 World Champion and sustainability entrepreneur). 

The funding will help the UK company to buy and build selected renewable energy assets and accelerate the development of the Tesseract platform. 

Decentralising right to power

Founded in 2022 by Alan Chang and Charles Orr, Tesseract was created to decentralise the right to power by delivering clean, cheap electricity to consumers and helping solve climate change. 

Alan Chang, co-founder, and CEO at Tesseract, says, “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.”

The vertically-integrated energy startup cuts out the middlemen of the energy market by owning renewable generator assets and selling directly to consumers at cheaper bills. 

Instead of installing expensive solar panels, customers can buy a ‘virtual’ solar panel or wind turbine on the app, which could cut their bill by as much as 100% and allow them to capitalise on selling the excess energy. 

Charles Orr, co-founder, and COO at Tesseract says, “For too long, people have been at the mercy of inefficient energy industry, run by vested interests. Investment in innovation and green energy is minimal and a fig leaf for business as usual. As prices across Europe rise, we see opportunities to challenge this establishment and have the technology and vision to take on this industry.”

Colin Hanna, the partner at Balderton Capital, says, “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.”

Klaus Hommels, founder and chairman at Lakestar, says, “Alan and Charles are in the top tier of European startup talent, with serious drive and ambition. I firmly believe their innovative and exciting business model will revolutionise the energy industry. Lakestar is pleased to support Tesseract and the company’s goals of solving climate change and providing cheap electricity to millions.”

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