Seed round: Reel secures 5 million euros
Munich — Copenhagen-based energy start-up Reel announces 5 million euros in seed funding. This is led by Transition, a venture capital fund that focuses on climate start-ups. Other backers include existing investors UVC Partners, The Footprint Firm and a group of energy specialists and founders, including Climeworks’ Chief Project Development Officer Daniel Nathan and Netlify co-founder Christian Bach.
In order to have a positive impact on climate change, the way in which companies purchase and use electricity must change. Electricity is one of the main causes of CO2 emissions worldwide (
). Commercial and industrial consumption is responsible for two thirds of total global electricity consumption.
Reel offers companies an alternative to conventional purchasing of renewable energies, particularly with regard to proof of origin. This is because the applicable certificates are often criticized for not really contributing to CO2 reductions. With Reel, companies can conclude power purchase agreements (PPAs) that offer electricity at a fixed price and reduce CO2 emissions by feeding renewable energy into the grid.
Anders Engtoft Meldgaard, CCO and co-founder of Reel, comments: “These certificates lead to companies’ CO2 reduction efforts being greatly overestimated. Accordingly, the risk of failing to meet the Paris Agreement is further increased. Reel, on the other hand, enables companies to achieve carbon-free energy consumption every hour of the day.”
Alexander Kiltz (photo © UVC), Principal at UVC Partners and Advisory Board member at Reel, says: “Since leading Reel’s pre-seed round, we have witnessed the team demonstrate its ability to execute a smart business model that is deeply embedded in the electricity value chain. We look forward to the next steps in Reel’s journey as we launch additional products and expand into more regions.”
Reel plans to use the money to expand its product range and introduce its electricity procurement model to carbon-intensive energy markets across Europe. This also includes the expansion of the team, particularly in the areas of development, sales and operations.
Reel is the next generation electricity supplier and offers companies a new way of purchasing electricity. With Reel, companies can conclude power purchase agreements (PPAs) that offer electricity at a fixed price and reduce CO2 emissions by feeding renewable energy into the grid. Reel’s vision is a world that lives from 100 percent renewable energy.
About UVC Partners
UVC Partners is a Munich and Berlin-based early-stage venture capital firm investing in European B2B start-ups in the fields of enterprise software, industrial technologies and mobility. The fund generally invests between €0.5 and €10 million at the outset and up to €30 million in total per company. The portfolio companies benefit from the extensive investment and exit experience of the management team as well as from the close cooperation with UnternehmerTUM, Europe’s leading innovation and start-up center. With over 400 employees and more than 100 industry partners, UnternehmerTUM can draw on many years of experience in building young companies. This cooperation gives UVC Partners the opportunity to offer start-ups unique access to talent, industry clients and other financial partners. www.uvcpartners.com