Synergi raises $2M Seed for the future of virtual power plants and energy flexibility

Finnish energytech company Synergi has raised €2 million Seed funding. 

Customer-owned home energy assets have opened up the possibility of VPPs (virtual power plants) that aggregate loads of home energy assets.

Consumers can be nudged and rewarded to change consumption habits and relieve the grid during peak times.

In response, Synergi launched its platform in 2023 to encourage households and utilities to participate in the green transition by flexibly using their home energy assets, such as electric vehicles, heat pumps, and solar panels. 

I spoke to Antti Hämmäinen, CEO and co-founder at Synergi to learn more. 

"We want to help consumers and utilities benefit from providing flexibility to the grid. Previously, this was not possible.

Soon, utilities can generate revenue from flexibility markets by aggregating loads of customer-owned energy assets on the Synergi platform and providing their customers with the Synergi app as a turnkey solution."

Hämmäinen describes the previous year as a kind triumph as the company expanded their product offering to encompass not only the initial EV charging but also solar, heat pumps, and more, helping households use electricity more efficiently and assisting utility providers in participating in flexibility markets and to start monetising residential flexibility by launching smart electricity products.t

"Energy flexibility markets have always sounded good on paper, but now they're becoming true, as we work to be the forefront of helping residents manage their energy use."

To assist households in optimising energy use during cheaper and greener periods, the company released the "Synergi app." The app has helped thousands of European users save 50 per cent on EV charging and 20 per cent on heating costs annually.

Further, since its inception, the company's customer base has transitioned from early adopters who tinkered with their own smart energy hacks to a diversity of users seeking to reduce their energy inefficiencies while maintaining a familiar level of comfort.  

It's been a challenging few months for startups seeking capital. 

However, Hämmäinen attributes the company's success to "crystal clear focus and early conviction from end users." 

"While the market has been challenging, many venture capitalists haven't yet made their bets in this area.

They're waiting for the industry to mature, and many are still on the sidelines, although the energy industry is getting hotter and hotter, especially around software-controlled energy optimisation."

Greencode Ventures led the round, while Vaens joined as a new follower. Existing investors Lifeline Ventures, APX (the first-cheque investor of Porsche and Axel Springer), and Wave Ventures also participated in the round.

While Synergi has focused most of its time on product development while growing its user base dynamically, the company is now focused on a broader approach. 

For example, it explores how it can use utility companies as a distribution channel for its product as it works to amp up the commercial side of the business.  

All of this bodes well for dynamic pricing and a flexible energy market. 

With the funding, Synergi will hire new engineers, salespeople, and marketers and expand into flexibility markets in Nordic and central European countries.

The company has grown into a household name in Finland thanks to PR and strong brand awareness. 

"But we need to replicate the success in other markets as well, which will include bringing in more senior talent from the energy industry who can really provide first-hand knowledge." 

"We don't need to be everywhere at once. But we can carefully choose a couple of different markets where our product will fly very nicely, double down on those, and then scale to the other countries later on.

Hämmäinen is optimistic about the sector, believing that soon "someone will build a unicorn out of the space, as there are multiple opportunities, not only in residential utilities."