Texas-Based Branch Energy Raises $33M in Series B Funding

What is Branch Energy?

Founded in 2021 by Alex Ince-Cushman, and Daniel MacDonald, Branch Energy provides energy solutions that help commercial buildings reduce electricity costs, and access backup power.

Its platform, called Arc, is a self-contained battery energy system that combines industrial-grade batteries, grid connection equipment, cooling, autonomous controls, and cloud software. The system can be installed at commercial properties such as warehouses, hotels, factories, and retail buildings.

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Branch installs Arc on-site without requiring building owners to make an upfront payment. The company handles permitting, installation, insurance, and operations, while customers provide a parking-space-sized area for the system.

Funding Details

Branch Energy raised $33 million in its Series B round, led by Piva Capital and Clean Energy Ventures.

Other participating investors include Active Impact Investments, Whitecap Venture Partners, Prelude Ventures, Zero Infinity Partners, and Inovia Capital.

The company did not disclose its total funding raised after the latest round.

How Will Branch Energy Use the Funding?

Branch Energy will use the fresh capital to expand its services from Texas to Illinois and other markets.

The company is also expanding its Arc battery deployment model across commercial properties, and unused parking areas, allowing businesses to access additional energy capacity without building new transmission infrastructure.

Company Background

Branch Energy is headquartered in Houston, Texas. Its Arc systems can be delivered by flatbed trucks and installed in about two days.

The company operates the battery systems and manages their electricity usage. It earns revenue by dispatching stored energy to the grid or contracted energy buyers and by shifting electricity use from lower-cost periods to higher-cost peak periods.

Customers receive guaranteed energy savings and backup power during outages without paying upfront for the Arc system.

Leadership Comments

“Hyperscalers need power, and they need it now,” said Alex Ince-Cushman, Co-Founder and CEO of Branch Energy. “We can do it on the timeline of a delivery, not a construction project. Our customers don’t lift a finger, don’t pay a dime, and get guaranteed savings.”

“Grids around the country need the distributed capacity that this system can supply, especially in states with fast-growing power demand, like Texas and Illinois,” said Lee Larson, Principal at Piva Capital. “Branch Energy is an essential solution for business owners to reduce their monthly electricity bill, and their optimized battery fleet reduces system-wide costs for all of us.

Market and Business Growth

Branch Energy is expanding into Illinois as energy demand rises from data centers, electric vehicles, HVAC systems, and advanced manufacturing.

The company sees an opportunity in the PJM territory, which covers about 1.2 million commercial buildings and around 20% of US electricity demand. PJM has also created a pathway for large energy users to connect sooner when they bring additional energy capacity to the grid.

What Happens Next?

Branch Energy will expand its Arc deployments beyond Texas, starting with Illinois and other markets. The company plans to use its distributed battery systems to help commercial buildings manage energy costs and provide additional electricity capacity.

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