Tesseract raises $78 million to fix the broken energy sector

The round was co-led by Balderton and Lakestar, with additional participation from Accel, Creandum, Lowercarbon, Ribbit and BoxGroup, along with a number of strategic angels.

Founded by Revolut alumni Alan Chang and Charles Orr, Tesseract is a new, vertically-integrated energy company, generating affordable, renewable power, and contributing to the transition to a low carbon future.As a vertically-integrated business, the company cuts out the middlemen of the energy market by owning renewable generator assets and selling directly to consumers, delivering significantly cheaper bills. Instead of needing to install expensive solar panels, customers will be able to 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. By using co-located grid-scale batteries, Tesseract will also be able to effectively manage energy flexibility, creating a more commercially attractive model than competitors.The funding will allow Tesseract to buy and build selected renewable energy assets and support the development of the Tesseract platform.

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.

Colin Hanna Partner, Balderton

The Tesseract team are confident they can upend the energy industry in the same way they disrupted the banking industry at Revolut. Co-founder and CEO Alan Chang was the fintech’s third employee and served as Chief Revenue Officer, whilst co-founder and COO Charles Orr was Revolut’s strategy lead, before spending time as an investor at Mosaic.Together they have assembled a team of top energy industry veterans to support their mission to change renewable energy forever. This includes Arnaud Luboinski, former head of French Power Trading at EDF; Eduard Uraskulov, former head of M&A at EuroChem and executive at Goldman Sachs; and Dermot Nolan, ex-CEO of UK energy regulator Ofgem who has joined as a board advisor. In addition, several former Revolut team members have joined the team including Felix Jamestin, who launched Revolut Junior; Rory Keohane, creative lead; and Nik Denisenko, lead backend engineer, alongside software engineers from Farfetch, Lyft and IBM.

We started an energy company because it can solve two of the greatest problems the world faces: 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 & CEO, Tesseract

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