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The oversubscribed round was joined by In-Q-Tel (IQT), JGC MIRAI Innovation Fund, Santander InnoEnergy Climate Fund, Antares Ventures, and existing shareholders.
The funding will fuel commercialisation of the company’s cutting-edge smart transformer and software in multiple markets as demand intensifies globally.
London, 5th February 2025. Deep tech innovator IONATE is proud to announce the closing of its Series A fundraising led by AlbionVC, with a syndicate including strategics IQT, JGC MIRAI Innovation Fund, and institutional investors Santander InnoEnergy Climate Fund and Antares Ventures. Existing shareholders, IQ Capital, Zero Carbon Capital, and Cycle Group also joined the round.
Since 2019, IONATE has been building the hardware-software backbone for smart grids. In the past year, the clash of outdated electrical infrastructure and modern energy needs, such as AI and decarbonisation escalated the strain on both the grid and connected industries. Power issues now threaten uptime in systems with no visibility and control; workaround solutions leave critical industries like manufacturing and data centers struggling with energy efficiency.
IONATE’s Hybrid Intelligent Transformer (HIT) and Aurora Platform have been validated just in time to serve this accelerating demand.
A fundamental upgrade to the building block of electrical systems, the HIT replaces old transformers with a smart equivalent. It integrates high-fidelity data and precise power flow control to detect, analyse and resolve power disturbances in real time.
But in doing so, HITs effectively light up real-time control nodes – transforming power systems one substation at a time. Coordinated by IONATE’s Aurora, their network will unlock a step change in efficiency, capacity, and achieve true smart grid capabilities with AI-enabled control.
The first networks to benefit are Portugal and Spain, operated by energy giant EDP, with more to follow in 2025. Simultaneously, IONATE has been scaling to serve industrial sectors, especially data centres, as a NATO DIANA innovator. The investment will fuel IONATE’s growth across key markets, launch its US operations and supercharge its tech to usher in a new era of smart grids.
Matthew Williams IONATE’s Founder & CEO said: “The IONATE team builds extraordinary tech with extraordinary timing. Just as national networks, industrial players and data centers realised how much of their progress depended on modernising their electrical infrastructure, we are ready to help them do exactly that. Resiliency, flexibility, and efficiency are key for our energy systems, and IONATE is uniquely positioned to strengthen all three. We are so excited to have some of the strongest VCs and strategic partners in our corner to realise this impact and begin transforming power globally.”
David Grimm, Partner AlbionVC said: "IONATE is pioneering grid technology that supports the energy and environmental requirements of modern grid infrastructure. Matthew and the team have quickly gained traction with utilities and strategics, showcasing the potential of their innovative full stack hardware-software solution. Their patented technology and first-mover advantage position IONATE to deliver a transformative, long-term product that brings the promise of clean electricity alongside performance requirements.”
IQT’s UK Director, J.D. Englehart said: “Energy resilience is a matter of national security. IONATE has built a transformational technology that unlocks grid resilience and control, which will have massive applications and implications for critical national infrastructure such as power stations and data centers. We’re thrilled to be investing in and partnering with IONATE to amplify and accelerate their mission.”
JGC’s Hideki Kawakami also commented: “We are extremely honored to be part of this investment round and to create new pages in IONATE's journey together with great co-investors. I am very excited to witness the innovation that IONATE's smart transformer brings to our society, not only as a business partner, but also as a futuristic engineer. We have no doubt that IONATE's wonderful team and cutting-edge technology will decarbonise our society with more widespread renewable energy.”
Giovanni Bologna, investor at Santander InnoEnery Climate Fund, said: “We are living in a world that is witnessing a constant increase in electricity demand, while new distributed energy-generating and energy-consuming assets like residential solar, EV chargers or heat pumps are introduced. All these factors put already-old grid networks under extreme pressure. We believe IONATE is uniquely positioned to be part of the solution to this problem, directly acting on the nodes of the power distribution systems. Extremely happy to partner up with such an “obsessed” and knowledgeable team, and with a great line up of co-investors.”
Michael Gryseels, Managing Partner at Antares Ventures, said: “We are thrilled to partner with IONATE and support its expansion to Asia’s growth markets, and unlock its potential to transform Asia’s power infrastructure with ground-breaking technology that makes electricity grids smarter, more resilient, and ready for the renewable future.”
Pippa Gawley, Founding Partner at Zero Carbon Capital, said: “We’re proud to have been a part of IONATE’s journey since leading their first investment round four years ago. They are an incredibly smart and dedicated team, with a ground-breaking technology that could improve every electrical node. Their smart transformer can enable greater and faster penetration of renewables to the grid, whilst also optimising electrical capacity, availability and reliability. We’re so excited for this new chapter in their story and can’t wait to see them grow from here.”
About IONATE
IONATE is building the hardware-software backbone for smart grids. Its proprietary Hybrid Intelligent Transformer (HIT) replaces transformers with a smart equivalent, integrating high-fidelity data and precise control of voltages, harmonics and reactive power all-in-one. This makes the HIT a Swiss Army knife for stabilizing power flows across grids, power generation, industrial assets and data centers, while also lighting up real-time control nodes. Coordinated by IONATE’s AI-enabled software, they turn the passive, old grid into the smart decentralized energy platform we need for the 21st century.
A grid with IONATE’s tech can on average:
• Handle 33% more distributed energy resources (DERs like solar, EVs, heat pumps, etc.)
• Carry 25% more power without upgrading poles and wires
• Reduce wasted power by 6%
About AlbionVC
AlbionVC supports visionary founders and technologies with long-term capital and scale-up know-how. Founded in 1996, it was amongst the first to back leading global success stories such as Booking.com, Egress, Quantexa and Oviva. With £1bn in AUM and over 100 exits successfully realised, it funds venture breakthroughs that drive real outcomes for founders, investors and society. AlbionVC is the technology investment arm of Albion Capital Group, which is authorised and regulated by the Financial Conduct Authority. For more information please visit: https://albion.vc/
About IQT
IQT is the not-for-profit strategic investor the U.S. national security community and America’s allies have relied upon for 25+ years to anticipate their technology questions and needs and achieve solutions. IQT identifies, evaluates, and leverages emerging commercial technologies to deliver best-in-class capabilities, insights, and other services to government partners through a unique global investment platform. For more information visit www.iqt.org.
About JGC
The JGC Group, through its CVC Fund, invests in domestic and overseas start-ups with innovative technologies and business models that contribute to building safe, secure and sustainable social systems, focusing on issues such as achieving carbon neutrality, building sustainable and resilient infrastructure, improving the quality of life in the age of the 100-year lifespan, and industrial smartification.
About Santander
Santander Alternative Investments SGIIC, the alternative investment manager within the Asset Management business of Grupo Santander, is a management company dedicated exclusively to the management of Alternative Investments through different strategies, including Private Debt, Real Estate, Infrastructure and Renewable Energy, Funds of Funds, Private Equity and Venture Capital. It currently has a team of 70 people, of which 30 make up the different investment teams.
Santander Asset Management is a global asset manager with firm roots in Europe and Latin America. Stretching back over 50 years and operating in 10 countries, it has EUR 231 billion in assets under management across all types of vehicles, from mutual funds and pension plans to institutional mandates and alternative investments. Its investment solutions include tailor-made Latin American and European fixed income and equity mandates. As part of Wealth Management & Insurance (WM&I) division, it has 875 employees all over the globe, 246 of which are investment specialist over 10 years ‘experience in asset management. Its investment methods and local teams’ analysis capabilities, coupled with stringent risk control, give it a unique insight into market opportunities and its clients’ needs. Figures as of 30 September 2024.
About Antares Ventures
Antares Ventures is a pioneering early-stage VC Fund based in Singapore, strategically investing in deep tech ventures that address sustainability challenges in Asia's growth markets, such as the energy transition, industrial decarbonization, sustainable cities, and mobility. With a global mandate, Antares targets exceptional deep-tech ventures aspiring to expand across Asia's dynamic markets, providing hands-on support through its leadership experience, proprietary market insights, in-house value creation team, senior advisors, corporate partners, and extensive local networks. For more information, visit www.antares.ventures.
About Zero Carbon Capital
Zero Carbon Capital is a UK-based venture capital company investing at the earliest stages of deeptech climate companies. They invest across Europe in scientific innovations fixing the biggest unsolved contributors to climate change. Find out more about their work and portfolio at www.zerocarbon.vc.
About Cycle Group: https://www.cycle-group.com/en
About IQ Capital: https://iqcapital.vc/