Energyworx raises â‚¬1m to accelerate growth and open US office
July 28, 2016
Dutch SaaS-based energy data management and intelligence company Energyworx has raised €1m Series A funding led by venture capital firm HenQ.
The company aims to help utility companies navigate and monetise the energy transition. It will use the funding to accelerate growth and scale its US and European operations, including the opening of an office in San Francisco.
Energyworx also announced two executive appointments. Marcel Smit has been appointed CEO, responsible for the global go-to-market strategy and leading the company’s San Francisco and Dutch offices. Energyworx’s founder Edwin Poot has been named chief visionary officer and will focus on the company’s long-term product strategy.
Smit has a strong history of leading high growth companies. He is the former CEO of Mirror42, a performance analytics company acquired by ServiceNow in 2013, and the former CEO of Q-go, a natural language search company acquired by RightNow Technologies in 2011.
“Our team and investing partners see Energyworx as an innovative leap in the energy transition, helping energy-related companies discover new business models and better monetise their data,” said Herman Hintzen, executive partner at HenQ. “The addition of Marcel to the executive team and his experience with leading teams and igniting top line growth will help further cement Energyworx as a global leader in the energy intelligence sector.”
The energy transition to renewable energy is disrupting the existing business models of energy and utility companies. Data are growing exponentially due to the rollout of smart meters, new grid sensors, IoT and the increasing frequency of data. As a result, utility companies need to transform from a commodity-driven model to a data-driven model, and ingesting, analysing and getting value out of these massive amounts of data are quickly becoming significant problems for all players in the energy industry.
Energyworx believes it can help because its pay-per-use pricing can be an attractive method for utilities looking for rapid time to market without any capital expense.
“Energyworx solves two critical issues that utility and energy companies have been struggling with for years,” said Smit. “First, we help utilities ingest and crunch massive amounts of data to provide more effective and efficient energy data management. Second, we utilise machine learning-based energy intelligence that helps utilities learn from their data and better monetise it.”
Market demands and regulation are changing fast, and there is a worldwide rise of renewable energy sources. According to a report from Green Tech Media Research, the cumulative value of the smart grid market is expected to surpass US$400bn by 2020, and the fastest growing smart grid market segment globally is the analytics sector with a compound average growth rate of 17.34 per cent.
Smart meters and other intelligent devices in the home are becoming ubiquitous and growing at lightning speed. More and more consumers are becoming energy producers with their own solar panels. Instead of one-way, information needs to flow two-way. Meter values used to be collected once per year, but are now moving to 15-minute values, second values or even streaming real time. This increasing frequency and density of energy data brings enormous scaling, data quality and data crunching problems with it, which Energyworx addresses.
“Energy and utility companies are sitting on a huge pile of valuable data, but they have challenges learning from and finding the business value to monetise it,” said Poot. “I’m proud that Energyworx is seen as a growth leader in this industry where very few companies to date have dared to challenge the status quo of incumbent methodologies. We are excited to expand our global footprint and look forward to helping even more utility companies worldwide manage the energy transition.”