TLDR: Finnish energy storage startup Cactos has raised $28.5 million in fresh funds to finance the roll-out of its battery storage systems. The company uses both recycled Tesla batteries and new batteries to build its energy storage systems, which enable companies in sectors such as real estate and logistics to buy and store energy when it is cheap and then use it later. Cactos offers customers 10-year leases for the battery storage units, which can be used to power buildings or charge electric vehicles. The company aims to raise a total of €70 million ($77 million) in equity and debt.
Some key points:
– Finnish energy storage startup Cactos has raised €26 million ($28.5 million) in new funding to finance the roll-out of its battery storage systems.
– Cactos uses both recycled Tesla batteries and new batteries to build its energy storage systems. The company’s storage systems enable companies to buy energy when it’s cheap and plentiful, store it, and use it later.
– Cactos owns, operates, and finances the battery storage units for its customers, who take on 10-year leases for a monthly fee. The units can be used to power buildings or charge a large fleet of electric vehicles.
– The company’s funding model splits its long-term leasing of assets business from its high-risk technology play. This allows for the roll-out of the energy system to be funded with a lower cost of capital compared to typical venture capital funding.
– Cactos raised funding from OP Finland Infrastructure LP and the Finnish Climate Fund. The company aims to raise a total of €70 million ($77 million) in equity and debt.
– The funding will be used to buy energy storage systems and will be spent over two and a half years. The fund will operate for around 10 years and the hardware will be managed through Cactos’ software platform.
– Cactos plans to use the same structure in other markets, with a central European fund being considered for this year. The company already has an office in the Netherlands.
These key points highlight Cactos’ successful fundraising and the value of its energy storage systems in enabling companies to manage their energy costs and reduce reliance on the grid. The use of both recycled Tesla batteries and new batteries demonstrates the company’s commitment to sustainability and innovation. The funding model also allows for stable, long-term cash flows, providing a strong financial foundation for the company’s roll-out plans.
