LO3 Energy revealed that it is finalizing its $11 million Series B fundraiser with the help of the leading investor Shell Ventures. This amount will help the company to establish Pando, a project that utilizes blockchain technology to develop a community renewable energy market for distributed energy resources (DERs) like solar panels. Other investors championing this project’s procession include Japan’s Shikoku Electric Power, which is the latest addition, Centrica, Braemar Energy Ventures, Sumitomo Corporation, among other investors. These partners have managed to raise $17.6 million for LO3 Energy which is currently running on $1 million sales from the data displayed by Nikkei.
The co-founder and chief executive of LO3 Energy, Bill Collins, stated that it is grateful to the investors who have enabled it to grow from a small startup company to a megacompany dealing with grid management. He added that this new capital would allow the company to expand its operations through the United States and the global community. LO3 Energy creates an avenue for electricity grids to supply to consumers through a subscription plan and an energy market where users can select the renewable energy source that serves them. Moreover, the customers with installed renewable energy resources like solar panels can supply the excess of their energy to the grid for distribution to areas where it is highly required.
Collins explained that Pando allows grid operators to provide their customers with alternative energy solutions and to involve customers in the process of generating, consuming, and selling the energy via the grid to other places. The customers’ feedback drives the decisions that the company makes to satisfy the customer’s demands. LO3 Energy’s most prolific project was that where it developed a community microgrid in Brooklyn. Other renowned projects that have lived up to its reputation have been established in Europe, the US, Australia, and in industrial facilities in Marubeni and Kyocera Corporation in Japan.
The investment director for Shell Ventures, Kirk Coburn, explained that they want to be involved in the transition to global energy markets with distributed systems, developed technologies and innovative techniques. This move would prove their aspirations of being part of the entities that have facilitated the reduction in emissions from the energy sector. Other startups in this line of business that is hoping to receive similar treatment like LO3 Energy include Energy Web and PowerLedger. Another important project that wise investors should consider is EQUIGY because it involves four European electricity firms that run electricity grids in Austria, Germany, Italy, Switzerland, and the Netherlands. This investment can prove profitability in a short period.