Axle Energy Raises $25M for Virtual Power Plants

Jan de Vries · 2026-07-08

Axle Energy, a London-based startup that turns EV chargers, home batteries, and heat pumps into grid-balancing assets, just closed a $25 million Series A funding round. The company plans to use the capital to expand across the UK and into international markets, connecting more distributed energy assets and building partnerships with OEMs, utilities, and fleet operators. ### The Funding Details Energize Capital led the round, with backing from existing investors Accel, Picus Capital, and Eka Ventures. This brings Axle's total funding to roughly $35 million, following a $1.8 million pre-Seed in 2023 and a $10 million Seed round in 2024. ### Why Virtual Power Plants Matter Now Karl Bach, CEO and co-founder of Axle Energy, puts it simply: "Energy security is no longer just about where our energy comes from. AI and electrification are increasing electricity demand at a pace that power systems were not designed for." He points out that new generation and grid infrastructure can take years to build, but virtual power plants unlock capacity from existing infrastructure in weeks. Think of it this way: Instead of building a new power plant, Axle aggregates thousands of small energy assets—like your EV charger or home battery—and turns them into a flexible, dispatchable resource. When demand spikes, these assets can reduce consumption or feed power back into the grid, reducing the need for expensive fossil-fuel peaker plants. ### What Axle Energy Actually Does Founded in 2023, Axle Energy's software platform handles the entire value chain: - Connects distributed energy assets (EV chargers, batteries, heat pumps) - Forecasts their availability in real-time - Aggregates devices into virtual power plants - Bids into electricity markets - Dispatches assets when grid operators need balance - Settles payments with asset owners The company currently coordinates over 300,000 connected assets and manages more than 2 GW of capacity—comparable to a nuclear power plant. Through partner flexibility programs, consumers earn around $13 per month on average, with participants collectively earning millions last year. ### The Bigger Picture: European Funding Surge Axle's Series A is part of a wave of investment in European energy flexibility. According to EU-Startups, comparable rounds in 2026 include: - Capalo AI: $13 million Series A (Helsinki) - Hybrid Greentech: $18 million investment (Copenhagen) - Entrix: $51 million raise (Munich) - metiundo: $47 million round (Berlin) - Companion.energy: $9 million Seed (Ghent) - Exergy3: $13 million Seed (Edinburgh) Total disclosed funding across these examples: approximately $245 million. ### Investor Confidence Tyler Lancaster, Partner at Energize Capital, says: "As energy software investors, we have researched the VPP market for a decade, watching for the right team to scale this technology. Axle brings the most comprehensive vision, experienced and agile team, and customer-aligned, scalable business model we've seen." Zhenya Loginov, Partner at Accel, adds: "We believe flexibility will become one of the most important layers of the modern energy stack." ### What's Next As AI, electrification, and data center growth reshape power systems, grid operators are scrambling for lower-cost ways to balance supply and demand. Axle Energy's model—turning existing assets into flexible capacity—could be a blueprint for a global solution. The company says it handles everything from asset connection to payment settlement, making it a one-stop shop for energy flexibility. For US professionals watching the European market, Axle Energy is a name to keep on your radar. The company's rapid growth and strong investor backing signal that virtual power plants are no longer a niche concept—they're becoming a core part of modern grid infrastructure.