Smart electricity storage company Powervault has closed a scale-up investment round of £3.8m from existing and new investors.

They include Green Angel Syndicate, the UK’s only angel investment syndicate specialising in the fight against climate change, and its Climate Change Fund.

This equity investment round has triggered the conversion of £3.1m in loan notes raised in 2020 under the British Business Bank’s Future Fund structure.

Mark Ansell, chair of Powervault, and one of the largest investors in the company, said: “This funding round was part of the plan in 2020 when we raised the Future Fund convertible loan notes so long as the company successfully delivered over the following two years.

“I am pleased to say that we have done so, emerging from the difficult Covid years with a greatly enhanced product range which we believe offers a market leading price/performance.

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“In 2022 we exceeded our revenue budget by over 100 per cent. The investment that we have just raised leaves us debt-free, cash rich and well-placed to capitalise on the growth of the battery-based electricity storage market over the coming years.

“I would like to thank our existing shareholders and British Business Bank for their continuing support, and to welcome our new investors. We are still open to increasing the size of this investment round by including other like-minded investors.”

Simon Acland, chair of Green Angel Syndicate and non-executive director of Powervault, said: “I have always believed that intelligent behind-the-metre battery storage has a crucial role to play in the modern grid.

“The recent increase in electricity prices has radically improved the payback on the capital cost of storage.

“Now, by installing Powervault, home owners and SMEs can do the right thing for the planet, increase the grid’s resilience and improve their energy security, and make a highly attractive return on their investment, especially in conjunction with solar panels and a time of use tariff.”

Powervault’s ambition is to become the undisputed UK market leader for highly functional intelligent battery storage in the world of renewable energy, the smart grid, the internet of things and electric vehicles.

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Green Angel Syndicate is the UK’s largest network of specialist investors fighting climate change. GAS has over 355 members and has invested in 34 start-up and early-stage companies across the following sectors: energy, transport, buildings, food and agriculture, waste and recycling and environment.