London-based deeptech company IONATE has raised $17 million in a Series A funding round led by AlbionVC. The company, which focuses on modernising electricity grids with its hardware-software system, plans to use the capital for market expansion and launching operations in the United States. The investment comes at a time when industries and national networks are seeking ways to update their electrical infrastructure for greater stability and efficiency. As energy demands increase, solutions like IONATE’s Hybrid Intelligent Transformer (HIT) are drawing attention from key players in the sector.
Similar funding rounds in the energy technology sector have seen companies securing significant investments to develop smarter and more sustainable power systems. Notably, startups working on grid stability and renewable energy integration have attracted backing from institutional investors and government initiatives. IONATE’s approach aligns with previous efforts in this space, but its focus on real-time control and cost efficiency differentiates it from earlier solutions. The company’s partnerships with established industry players further reinforce its position in the evolving energy market.
Why are investors backing IONATE?
Investors, led by AlbionVC, see potential in IONATE’s patented technology, which integrates smart control and data management into a single transformer unit. The funding round also included participants such as In-Q-Tel, JGC MIRAI Innovation Fund, Santander InnoEnergy Climate Fund, and Antares Ventures. Existing backers, including IQ Capital and Zero Carbon Capital, reaffirmed their support. The financial backing highlights confidence in IONATE’s ability to enhance grid infrastructure and support the transition to cleaner energy.
David Grimm, Partner at AlbionVC, commented on the investment:
“IONATE is pioneering grid technology that supports the energy and environmental requirements of modern grid infrastructure. 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.”
How does IONATE’s technology impact power grids?
IONATE’s Hybrid Intelligent Transformer (HIT) replaces conventional transformers by combining voltage control, harmonic regulation, and reactive power management in a single unit. This enables improved stability in power distribution networks, industrial operations, and data centers. The integration of AI-powered software, including the Aurora platform, further enhances network efficiency and renewable energy adoption. By introducing real-time control, the company aims to offer a cost-effective alternative to conventional smart grid solutions.
The company has secured collaborations with major energy firms, including EDP, to modernise power networks in Portugal and Spain. Additionally, IONATE has expanded its technology for data centers and gained recognition from NATO’s Defence Innovation Accelerator for the North Atlantic (DIANA). These developments indicate growing demand for adaptive grid solutions in various sectors.
Matthew Williams, Founder and CEO of IONATE, expressed the company’s readiness to address modern grid challenges:
“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.”
As the energy sector moves toward modernisation, investments in smart grid technology continue to accelerate. IONATE’s approach, combining hardware improvements with AI-driven software, caters to the need for efficiency and stability in aging power infrastructure. However, challenges remain in large-scale implementation and adoption by utilities that have traditionally relied on legacy systems. The company’s entry into the U.S. market will be closely watched as it seeks to expand its influence in the energy sector. While its technology presents potential benefits, its long-term success will depend on how effectively it integrates with existing grid structures and regulatory requirements.
