UK smart-grid start-up Ionate has raised $17m in an oversubscribed series A funding round,

The money will fuel commercialisation of the company’s smart transformer and software in multiple markets globally.

Since 2019, Ionate has been building the hardware-software backbone for smart grids. In the past year, the clash of outdated electrical infrastructure and modern energy needs, such as AI and decarbonisation, escalated the strain on both the grid and connected industries. Power issues now threaten uptime in systems with no visibility and control; workarounds leave critical industries such as manufacturing and data centres struggling with energy efficiency.

Ionate’s HIT hybrid intelligent transformer and Aurora platform have been validated to serve this accelerating demand.

A fundamental upgrade to the building block of electrical systems, the HIT replaces old transformers with a smart equivalent. It integrates high-fidelity data and precise power flow control to detect, analyse and resolve power disturbances in real time.

But in doing so, HITs effectively light up real-time control nodes, transforming power systems one substation at a time. Coordinated by Aurora, the network can unlock a step change in efficiency and capacity, and achieve true smart grid capabilities with AI-enabled control.

The first networks to benefit are Portugal and Spain, operated by energy giant EDP (www.edp.com), with more to follow in 2025. Simultaneously, Ionate has been scaling to serve industrial sectors, especially data centres, as a Nato Diana (www.diana.nato.int) innovator. The investment will fuel Ionate’s growth across key markets, launch its US operations and supercharge its tech for smart grids.

“The Ionate team builds extraordinary tech with extraordinary timing,” said Matthew Williams, CEO at Ionate (www.ionate.energy). “Just as national networks, industrial players and data centres realised how much of their progress depended on modernising their electrical infrastructure, we are ready to help them do exactly that. Resiliency, flexibility and efficiency are key for our energy systems, and Ionate is uniquely positioned to strengthen all three.”

The series A round was led by AlbionVC, with a syndicate including strategics IQT and JGC Mirai Innovation Fund, and institutional investors Santander InnoEnergy Climate Fund and Antares Ventures. Existing shareholders, IQ Capital, Zero Carbon Capital and Cycle Group also joined the round.

“We are so excited to have some of the strongest VCs and strategic partners in our corner to realise this impact and begin transforming power globally,” said Williams.

David Grimm, partner at AlbionVC (albion.vc), added: “Ionate is pioneering grid technology that supports the energy and environmental requirements of modern grid infrastructure. Matthew and the team have quickly gained traction with utilities and strategics, showcasing the potential of their innovative full stack hardware-software option. 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.”

A grid with Ionate’s tech can on average handle 33% more distributed energy resources, carry 25% more power without upgrading poles and wires, and reduce wasted power by 6%.