Climate tech
Q2 202427.06.2024

Smart grids (Q2 2024)

Picture of Éanna Kelly

Éanna Kelly

at Sifted

Climate tech investors have really cottoned onto the opportunity of grid transformation in the last couple of years.

This is because the grid is undergoing a massive shakeup. Unlike power generated by fossil fuels — which can be turned on and off to meet demand — renewable energy sources like wind and solar produce power intermittently: when the wind is blowing and the sun is shining. That means electricity grids need to be able to balance different power inputs to ensure stable supply.

To combat this, new smart grids use a combination of software and hardware to match the supply and demand of electricity in real time to maintain a stable, reliable power supply.

Companies are working on tech that changes elements of the grid itself. Spanish company IONATE, for example, provides next-generation transformers that monitor the voltage to a minute level and can dynamically control it based on the supply of electricity at a given time.

VCs piled a record $1.5bn into grid technologies in Europe in 2023; though that figure has fallen in the first half of 2024. Most of that money has gone into batteries, typically a large capex investment (and for this reason, existing energy companies will have an upper hand here).

So while startups are making headway, we’re likely to see more of them partner with established utility or grid operating companies to build out their tech.

20 startups to watch

  • Fever logo

    Sifted score

    7.83
    -

    Fever

    • Strong investor(s)
    • Serial founder(s)
    • Year founded

      2022

    • HQ

      Stockholm, Sweden

    • Latest round

      Seed
      10m / Feb 2024

    • Total funding

      11.5m

  • Terra One  logo

    Sifted score

    7.35
    -

    Terra One

    • Strong investor(s)
    • Serial founder(s)
    • Hiring
    • Year founded

      2022

    • HQ

      Berlin, Germany

    • Latest round

      Seed
      7m / Apr 2024

    • Total funding

      7m

  • Reel logo

    Sifted score

    7.3
    -

    Reel

    • Serial founder(s)
    • Hiring
    • Year founded

      2020

    • HQ

      Copenhagen, Denmark

    • Latest round

      Seed
      5m / Jan 2024

    • Total funding

      7.3m

  • Ecoworks logo

    Sifted score

    7.17
    -

    Ecoworks

    • Strong investor(s)
    • Serial founder(s)
    • Hiring
    • Year founded

      2018

    • HQ

      Berlin, Germany

    • Latest round

      Early VC
      40m / Dec 2023

    • Total funding

      79.6m

  • Blixt logo

    Sifted score

    6.77
    -

    Blixt

    • Strong investor(s)
    • Serial founder(s)
    • Hiring
    • Year founded

      2018

    • HQ

      Stockholm, Sweden

    • Latest round

      Seed
      5m / Mar 2024

    • Total funding

      10m

Related Briefings

Related articles

Tech founders and investors on the Sunday Times Rich List 2025

May 16, 2025

Tech founders and investors on the Sunday Times Rich List 2025

By Kai Nicol-Schwarz
AI agent startup Lovable plans London office to snap up engineering talent
AI agentsExclusive

May 16, 2025

AI agent startup Lovable plans London office to snap up engineering talent

By Mimi Billing
How AI will change the VC job

May 16, 2025

How AI will change the VC job

How AI will change the VC job
By Anne Sraders
Pro
Meet three prize-winning European women founders
Startup lifeAnalysis

May 16, 2025

Meet three prize-winning European women founders

Meet three prize-winning European women founders
Sponsored by EIT
French crypto sector in shock after wave of violent attacks
CryptoAnalysis

May 16, 2025

French crypto sector in shock after wave of violent attacks

A picture of a bitcoin on a computer keyboard
By Daphné Leprince-Ringuet
How the venture partner role is changing in 2025

May 16, 2025

How the venture partner role is changing in 2025

A landscape headshot of CEO coach Julius Bachmann
By Julius Bachmann
Oskar Hartmann: The Instagram influencer pooling stakes in top unicorns

May 16, 2025

Oskar Hartmann: The Instagram influencer pooling stakes in top unicorns

Oskar Hartmann: The Instagram influencer pooling stakes in top unicorns
By Freya Pratty
Pro
Balderton-backed AI agent startup Convergence acquired by Salesforce a year after launch

May 15, 2025

Balderton-backed AI agent startup Convergence acquired by Salesforce a year after launch

By Kai Nicol-Schwarz
Energy startup Elvy has another $20m in equity on the table months after pre-seed
EnergyExclusive

May 15, 2025

Energy startup Elvy has another $20m in equity on the table months after pre-seed

By Mimi Billing
The investors backing DACH & CEE’s fastest-growing startups
Venture capitalMost active investors

May 15, 2025

The investors backing DACH & CEE’s fastest-growing startups

The 10 biggest backers of the region’s fastest-growing companies

By Hessa Alabbas
Pro
Exclusive: Optics11 raises €17m to protect underwater cables from Russian state ‘hooliganism’
DeeptechExclusive

May 15, 2025

Exclusive: Optics11 raises €17m to protect underwater cables from Russian state ‘hooliganism’

By Steph Bailey
The EU wants American AI researchers? Good luck with that

May 15, 2025

The EU wants American AI researchers? Good luck with that

Harry Law, a former senior researcher at Google DeepMind
By Harry Law
Car subscription service Finn tops Sifted’s DACH & CEE leaderboard for the second year in a row
Startup lifeLeaderboard

May 15, 2025

Car subscription service Finn tops Sifted’s DACH & CEE leaderboard for the second year in a row

Finn's team, pictured in January 2024
By Éanna Kelly and Jonathan Sinclair
Google alum hits $250m valuation for AI-powered note-taking app Granola

May 14, 2025

Google alum hits $250m valuation for AI-powered note-taking app Granola

By Kai Nicol-Schwarz
Migrant founders struggle to access capital and find local support, report finds

May 14, 2025

Migrant founders struggle to access capital and find local support, report finds

By Miriam Partington
Zopa Bank raises £80m with first LSE bond listing

May 14, 2025

Zopa Bank raises £80m with first LSE bond listing

The fintech wants to become the ‘go-to bank’ for millions of Britons

By Martin Coulter
DEI fatigue or denial? The AI boys’ club isn’t going anywhere

May 14, 2025

DEI fatigue or denial? The AI boys’ club isn’t going anywhere

Picture of Mimi Billing, Europe editor of Sifted
By Mimi Billing
OpenAI and Meta angels bet on employee perks startup Origin

May 14, 2025

OpenAI and Meta angels bet on employee perks startup Origin

The London-based intelligence platform for staff benefits raised $21m in Series A funding

By Maya Dharampal-Hornby
PayFit cofounder raises €16m seed for new defence tech startup

May 14, 2025

PayFit cofounder raises €16m seed for new defence tech startup

By Daphné Leprince-Ringuet
Florian Seibel, controversial defence tech unicorn founder, wants to bring the Anduril mindset to Quantum Systems

May 14, 2025

Florian Seibel, controversial defence tech unicorn founder, wants to bring the Anduril mindset to Quantum Systems

Quantum Systems and Stark founder Florian Seibel sits holding a drone.
By Anne Sraders
Pro
UK moonshot factory ARIA hosts upbeat London summit ahead of government spending review
DeeptechAnalysis

May 14, 2025

UK moonshot factory ARIA hosts upbeat London summit ahead of government spending review

ARIA Summit, 2025
By Amy Lewin
What Britain’s growth plan is missing: women

May 14, 2025

What Britain’s growth plan is missing: women

Check Warner, cofounder of Ada Ventures.
By Check Warner
Northern Gritstone pens partnership to back spinouts from the University of Liverpool

May 13, 2025

Northern Gritstone pens partnership to back spinouts from the University of Liverpool

By Tom Nugent
UK pension funds to unlock £50bn for startups and infrastructure

May 13, 2025

UK pension funds to unlock £50bn for startups and infrastructure

By Kai Nicol-Schwarz