Gateshead firm Equiwatt secures £700,000 investment boost
Equiwatt, whose energy management app encourages users to reduce energy consumption, has secured the funds from the North East Venture Fund, supported by the European Regional Development Fund and managed by Mercia Ventures, as well as private investors.
The new investment will help Equiwatt launch a new software as a service (SaaS) platform for utility companies and low-carbon technology manufacturers.
The company plans to continue its rapid growth ahead of a planned Series A investment round in the coming year.
Equiwatt’s free app is available to anyone with a smart meter or devices such as heat pumps, batteries, and electric vehicle chargers that incorporate its technology.
The app allows users to participate in schemes aimed at reducing grid pressure and earn points redeemable for gift vouchers or charity donations in return for switching off during peak periods.
The government is keen to encourage greater participation in such schemes and is urging energy suppliers to ensure all their customers have the chance to take part.
Equiwatt’s new powerResponse platform provides the technology to enable this and has already been adopted by a major UK energy supplier.
It can also be used by device manufacturers, housing associations, or retail loyalty schemes to roll out to their customers.
The latest funding round is the fifth, led by Mercia Ventures and the NEVF, which have backed Equiwatt since its inception in 2020.
Since the last investment in August 2023, the company has increased the number of consumers using its technology from around 5,000 to 120,000.
It has also achieved a five-fold increase in revenue and is on course for a further four-fold increase in the year ahead.
Dr Johnson Fernandes, founder and CEO of Equiwatt, said: “Managing domestic energy demand will be crucial to reducing the UK’s reliance on fossil fuel power stations and making the transition to clean energy.
“We believe Equiwatt can play a key role in that.
“Our app has proved very popular with consumers who appreciate the chance to earn rewards.
“Our new powerResponse platform enables energy suppliers and other businesses to give their customers a chance to participate.
“This investment will support the roll-out of the platform and our vision to make clean energy affordable and accessible for all.”
Chris McCourt from Mercia Ventures added: “Having backed Equiwatt from the very start, it is rewarding to see its rapid expansion.
“Its new platform has attracted strong interest within the industry, and pressure from regulators will further drive uptake.
“As Equiwatt embarks on the next stage of its growth journey, it has the potential to become a global leader in virtual energy management solutions.”
The North East Fund is a suite of five venture capital and loan funds which was established in April 2018 to invest £130m in around 600 North East businesses in the period to December 2023.
The fund managers provide business development advice and investment finance to small and medium-sized enterprises based in the seven local authority areas of North East England: Northumberland, North Tyneside, Newcastle, South Tyneside, Gateshead, Sunderland, and County Durham.
It encourages investment in and the commercialisation of new technologies, including low carbon technologies, as well as stimulating new business creation, private investment, and entrepreneurialism in the North East, with a view to creating over 2,500 new jobs.
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The North East Fund has overall responsibility for the programme, which is delivered through five separate funds, each managed by independent, FCA-regulated fund managers.
It has been established with funding from the North East of England European Regional Development Fund programme, the European Investment Bank and from returns on previous North East based, publicly supported investment funds.
It is jointly owned by the seven North East local authorities.