London (June 2023) — axle energy, an energy flexibility startup that connects EVs and home energy devices to electricity markets, has raised a $1.6m pre-seed financing round led by Picus Capital with participation from Eka Ventures. axle’s API enables energy suppliers and hardware manufacturers to monetize the flexibility of home energy devices, lowering costs and emissions while improving grid stability.

The electricity system matches supply to demand on a real-time basis; historically, this has been managed by turning fossil fuel plants up and down to meet demand. As intermittent wind and solar take over, society needs to find ways to use more energy when it’s cheap and green, and less when the wind isn’t blowing and the sun isn’t shining.

EVs and other home energy devices like heat pumps and batteries are inherently flexible: the typical EV is plugged in for 10 hours a day, but only charges for two of those hours. But challenges connecting these devices to electricity markets, which have been designed for fossil fuel plants, mean that the vast majority of this flexibility is untapped. The collective flexibility potential from EVs on the road today could replace the UK’s largest gas power plant; by 2030, EVs will have the capacity equivalent to every gas power plant.

This is where axle’s energy flexibility platform comes in. axle acts as the ‘virtual wires’ connecting home energy devices to electricity markets. By optimizing the combined flexibility of many home energy devices, axle’s software dynamically provides flexibility to the electricity grid and shifts energy usage to when it’s cheapest and greenest. axle seamlessly integrates with OEMs and energy suppliers, enabling these businesses to lower their residential customers’ energy bills by over 25% while increasing the capacity of the grid to transition towards a renewable future.

“The energy crisis has exposed the climate, cost, and dependency risks stemming from our dependence on fossil fuels,” says co-founder Karl Bach. “The time to decarbonise is now, and that requires a connected, dynamic, flexible grid, not the monolith we have today.”

“Karl and Archy bring the experience and vision to build the electricity system we need for the 21st century,” said Sebastian Schäfer, Partner at Picus Capital. “By building a Stripe for energy, axle is accelerating energy flexibility and decarbonisation, saving households on their bills, and creating long-term value for actors across the energy ecosystem.”

axle was founded in early 2023 by Karl Bach and Archy de Berker, who bring energy experience and AI expertise from the likes of Bulb, M-KOPA, CarbonChain, Habitat Energy, Origami Energy, and Element AI. For more information about axle, visit their website at www.axle.energy.

Contact

Karl Bach, co-founder and CEO, [email protected], +44 (0)7864543243

About axle

axle is a home energy flexibility platform that connects EVs and other devices to energy markets. axle’s API enables energy suppliers and hardware manufacturers to monetize the flexibility of home energy devices, lowering costs and emissions while improving grid stability. Founded in 2023 and active across Europe, axle is headquartered in London.

About the founders

Karl Bach: Prior to axle, Karl led Growth at Bulb, a London-based energy supplier, led Data & Strategy at M-KOPA Solar, a Nairobi-based pay-as-you-go solar provider, and worked in consulting at Bain & Company. Karl has a B.S. from Washington University in St. Louis.

Archy de Berker: Prior to axle, Archy led Product & Data at CarbonChain, a London-based carbon accounting startup, and worked in energy optimisation and AI at Origami Energy, Habitat Energy, and Element AI. Archy has a PhD in Neuroscience from University College London and a B.A. from the University of Cambridge.

About Picus Capital

Picus Capital is an international, privately financed venture capital company with headquarters in Munich and offices in New York, Beijing, Berlin, London, Bangalore, and São Paulo. Picus predominantly invests in Pre-Seed, Seed and Series A rounds and focuses on technology companies in financial services, HR, energy & climate, healthcare, logistics & mobility, real estate & construction, crypto & web3, deeptech and e-commerce. As an entrepreneurial sparring partner, Picus Capital pursues a long-term investment philosophy and supports founders from the ideation phase to the IPO and beyond. For further information please visit www.picuscap.com and www.linkedin.com/company/picus-capital.

About Eka Ventures

Eka Ventures is a seed stage, impact-focussed venture capital fund that invests in founders creating positive system change, with a particular focus on environmental sustainability and health & wellbeing.