Amsterdam, April 18th, 2023 – Dexter Energy, a leading provider of AI-based renewable power generation forecasting and trade optimization products for the short-term energy markets, announced today that it had raised €10.5 million in a fresh round of funding. This Series B round is led by ETF Partners and Astelia, with continued participation from existing investors Newion, PDENH, and Rockstart.
The company intends to use this new capital to fast-track its product roadmap and assemble its services into a complete, self-serve cockpit, allowing its customers to balance their renewables portfolio while optimizing their trading strategies and minimizing balancing costs.
To achieve these goals and to further support the expansion to new European markets, Dexter Energy aims to double the size of the team to 80 people by the end of this year.
Dexter Energy Management team: Hubert Penn, Luuk Veeken, Ana Caria, Tom Lemmens, Mehmet Karadayi
The transition to renewable energy sources causes a drastic change in electricity markets. Where previously a select number of fossil fuel plants provided electricity on-demand, now a large part of the energy is generated by intermittent renewable sources, meaning that an increasing portion of our power now flows only when the sun is shining or the wind is blowing. This is disrupting the way energy companies trade and balance power, increasing their balancing costs by 60% in 2022 alone, reaching an eye-watering €20bn in Europe alone.
Balancing costs are only expected to skyrocket further, as the percentage of wind and solar electricity supply in Europe is estimated to grow from 22% in 2022 to 65% in 2030.
Luuk Veeken, CEO and founder of Dexter Energy, said:
“We are very happy to welcome ETF Partners aboard who share our vision that AI is crucial in the energy transition towards a fully carbon-free power system. We really value their entrepreneurial mindset and ongoing leadership in sustainable investment. We see them as a fantastic sparring partner, and we are confident they will help guide the growth of our company in the best possible direction.”
Dexter Energy’s solution leverages advanced machine learning algorithms and big data analytics to help energy companies manage their short-term trading activities for a 100% renewable portfolio.
Remy de Tonnac, Partner at ETF Partners, added:
“We believe that Dexter Energy has created a category-defining solution that will transform how companies forecast and manage their energy generation and the way they trade. We are fascinated by the innovation displayed by the team, and we are confident that they are in pole position to become leaders and positive actors for change in the energy industry. It is inspiring to join and support a purpose-driven team and to actively contribute to reducing emissions and eliminating millions of tons of CO2 through the Dexter smart approach that solves imbalances in the grid.”
Patrick Polak, Co-founder and Managing Partner of Newion, commented:
“Newion feels privileged to be part of this journey. We think that Dexter Energy’s extremely talented team, with the help of its supportive investors, has the opportunity to disrupt a market that is full transformation.”
About ETF Partners
Founded in 2006, ETF Partners supports talented entrepreneurs and management teams with investment capital and experience. With funds come from institutional investors, global corporations, and family offices, ETF creates value by investing in technology companies that make a difference.
About PDENH
PDENH is an €85 million investment fund initiated by the Province of North Holland. It is mandated to invest in sustainable ventures focusing on energy, circular economy, and sustainable mobility. PDENH has built a successful portfolio of 35 impact ventures that generate substantial societal, economic, and financial returns.
About Newion
Based in Amsterdam, Newion focuses on European business-to-business software startups and scale-ups with global ambition. Since its launch in 2000, it has been among the best-performing fund managers in its industry. Newion III is supported by InnovFin Equity, which has the financial backing of the European Union under Horizon 2020 Financial Instruments and the European Fund for Strategic Investments (EFSI). EFSI aims to help support financing and implementing productive investments in the European Union and ensure increased access to finance.