Mainspring Announces $95 Million Series D Financing to Accelerate Delivery of its Breakthrough Power Generation Technology
MENLO PARK, Calif., May 4, 2021-- Onsite power generation provider Mainspring Energy, Inc., today announced its Series D financing of $95 million to accelerate delivery of the company's breakthrough new product, the Mainspring Linear Generator, to a broad range of commercial, industrial, microgrid, and utility customers. The Series D round, led by Devonshire Investors, the private equity firm affiliated with FMR LLC, the parent company of Fidelity Investments, brought in other new investors including Princeville Capital, 40 North Ventures, and Chevron Technology Ventures, as well as existing investors Khosla Ventures, Bill Gates, ClearSky, AEP, KCK, and Equinor. This investment brings the total capital raised by the company to $228 million.
"The increasing incidence of extreme weather events and related power outages has underscored the growing demand for resilient, low-carbon, and low-cost power solutions. Mainspring delivers this with the additional advantages of full dispatchability to enable solar and wind resources and the ability to dynamically switch between fuels, including 100% renewable fuels," said Mainspring Founder and CEO Shannon Miller. "This round of funding with additional world-class investors further enables us to grow our linear generator business in order to meet that demand while accelerating the arrival of the zero carbon grid of the future."
Mainspring plans to use the funds to scale its U.S. customer deployments, expand its manufacturing operations, grow its current staff by more than 50%, and further build its position in the distributed generation industry. Last month, the company announced initial shipments of the Mainspring Linear Generator along with a $150 million unit purchase and project finance agreement with NextEra Energy Resources to promote deployment of Mainspring's product and advance the adoption of renewable fuels such as biogas and hydrogen.
Shyam Kamadolli, Managing Director at Devonshire Investors, stated, "Devonshire sees prospects for disruptive innovations in the fast-growing clean distributed generation industry. Mainspring is well positioned with its combination of a breakthrough generation technology, a tremendous market opportunity, and an outstanding team to execute on delivering to customers."
The growing mandate for a reliable, affordable, and low-carbon electric grid is driving demand for new power generation technologies that can enable greatly increased use of renewable energy while providing improved resilience against natural disasters, increased flexibility, and lower cost than the electric grid. Mainspring's breakthrough technology is designed to meet these demands by delivering dispatchable, fuel-flexible power that substantially reduces cost and carbon today, while accelerating the transition to the net-zero carbon grid.
"One of the greatest challenges in the global race towards decarbonization is getting there at sustainable levels of resilience and cost," added Eric Kosmowski, Managing Partner at Princeville Capital's Climate Technology Fund. "Mainspring's approach brings together these benefits in a way that no other technology we've seen can accomplish."
The Large and Growing Market for Distributed Generation
Market research firm Guidehouse Insights estimates the total worldwide market for distributed generation technology to be $86 billion in 2020, growing to $212 billion by 2030. Within this market, Mainspring's targeted customer sectors include commercial and industrial buildings, grid infrastructure such as utility, municipality, and power project applications, and a wide range of microgrids such as residential communities, data centers, military bases, and university campuses. The company shipped its first product in mid-2020 and continues its rollout to big-box retail, grocery, shipping, logistics, telecommunications, agriculture, wastewater treatment, and utility customers across the Fortune 500.
About Mainspring Energy
Driven by its vision of the affordable, reliable, net-zero carbon grid of the future, Mainspring is delivering a new category of power generation — the linear generator — that delivers onsite, dispatchable, fuel-flexible power at low cost. Based in Menlo Park, Calif., Mainspring is backed by top-tier venture, strategic, and financial investors. www.mainspringenergy.com.
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