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
Tesseract was founded in 2022 by Alan Chang and Charles Orr. The company’s name comes from the word decentralize, which is related to giving consumers the right to cheap and clean electricity. Tesseract also helps solve climate change with its mission.
Alan Chang is the co-founder and CEO of Tesseract. He says that his company started an energy firm because it can solve two of the world’s greatest issues: climate change and increasing energy prices. During his time at Revolut, Chang saw how old systems and business models were holding the system back. He also observed how modern technology and a forward-thinking mindset helped people all over the world. The energy sector is considered ripe for change— just like the banking industry was before it.
By owning renewable energy generators, this vertical startup cuts out the middlemen of the energy market when selling products to consumers. This leads to cheaper bills for customers.
By purchasing a virtual wind or solar turbine on the app, customers can dramatically reduce their energy bills. Additionally, they can make money by selling excess energy fed into the grid.
Charles Orr, co-founder and Chief Operating Officer of Tesseract, says “Vested interests in the energy industry have held people hostage for too long. Energy innovation has been given very little funding and is only seen as a superficial tool for maintaining the status quo. As a result, prices across Europe have risen— which Tesseract sees as an opportunity to challenge the established energy industry. The company believes that this is due to its vision and technology.
The partner of Balderton Capital, Colin Hanna, has expressed his support of Tesseract Energy. He says that the world is facing critical problems when it comes to energy and the environment. As a result, brave solutions are necessary— solutions that Tesseract Energy can provide. Tesseract’s renewable power model with new approach to energy participation can help the world face both warming temperatures and fossil fuels. Additionally, Hanna praises Revolut’s former employees Charles and Alan for their iconoclastic ability to reorganize other industries during their time there.
Klaus Hommels, founder and chairman of Lakestar, says “Charles and Alan possess serious ambition and drive. I believe they are among the top tier of European startup talent. Their business model is revolutionary and will dramatically alter the energy sector. Because of this, Lakestar is pleased to support Tesseract in meeting its goals of solving climate change and providing cheap electricity to millions.”