🔌 Ionate raises £3.3m seed to upgrade electricity generation and distribution

Congratulations to ZCC portfolio company Ionate, who today announced their £3.3m seed funding round led by IQ Capital. This funding will enable them to scale operations and deliver their pioneering hardware-software power flow control solution, the Hybrid Intelligent Transformer, to real world power systems.

Ionate was the first company we invested in from the Zero Carbon Fund back in 2020. During our first meetings, Matthew and Rob helped us understand the challenges that the grid and power generation systems were going to face as we scaled the percentage of renewable generation. As the number of generation points explodes and the influence of centralised mechanical generation (like gas power stations) is reduced, it will be increasingly difficult to controlling the quality of the power on the grid - leading to potential grid failures. Their solution was an innovative new type of transformer that could sit at generation sites and throughout the grid, managing key characteristics of the power in real-time.

Over the last two years the Hybrid Intelligent Transformer has gone from computer simulations, to bench-top prototypes, and now to a full scale version that the team is finalising with their manufacturing partner. Alongside this they've made great progress with commercial relationships, meaning they are poised to execute parallel proof-of-concept trials across multiple geographies, beginning next year.

This type of deep, technical innovation in the guts of our power systems doesn't get as much attention as we think it should. It's critical to achieving deep-decarbonisation and represents a huge opportunity to transform the way our world works. It has been a real pleasure to have a front row seat on Ionate's journey, and we're excited to continue our commitment to them with a follow-on investment and our continuing participation on their board.

Well done Ionate! 👏

‹ Moar power: investing in Echion's Series A.

Investing in deep decarbonisation: our approach ›

Risk to capital

This website is intended solely for professional clients and eligible counterparties.

Zero Carbon Capital Limited is an appointed representative of Sapphire Capital Partners LLP which is authorised and regulated by the Financial Conduct Authority. Sapphire Capital Partners LLP is authorised and regulated by the Financial Conduct Authority (Firm Reference Number 565716). Registered office: 28 Deramore Park, Belfast, BT9 5JU, United Kingdom.

Zero Carbon Capital Limited is registered in England and Wales (Company Number 12028532). Registered office: Lake House, 2 Port Way, Port Solent, Portsmouth, PO6 4TY, United Kingdom. Firm Reference Number 916588. Sapphire Capital Partners LLP is responsible for the regulated activities carried on by Zero Carbon Capital Limited.

This website constitutes a financial promotion for the purposes of section 21 of the Financial Services and Markets Act 2000 and is communicated by Sapphire Capital Partners LLP in its capacity as principal. It is directed only at persons who are professional clients or eligible counterparties, or who fall within exemptions available under the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005. It must not be relied upon by retail clients or any other person. The fund is a closed-ended alternative investment fund structured as a limited partnership.

Nothing on this website constitutes investment

advice, a personal recommendation, or an offer to sell or a solicitation of an offer to buy any securities. Any investment opportunity will be subject to separate legally binding documentation and appropriate investor classification and due diligence.

On this website, "we" refers to the combined activities of Zero Carbon Capital Ltd, Sapphire Capital Partners LLP and the funds they advise and manage.

Investments in early-stage and growth companies involve a high degree of risk. Capital is at risk and investors may lose the entirety of their investment. The value of investments and any income derived from them can go down as well as up. Past performance is not a reliable indicator of future results. Tax treatment depends on individual circumstances and may change in future.

Where investments are made through arrangements operated by Sapphire Capital Partners LLP under its FCA permissions, eligible claimants may have access to the Financial Services Compensation Scheme (FSCS) subject to the FSCS rules and limits. Not all investment activities or losses are covered by the FSCS.

Any references to sustainability, climate impact, carbon reduction or decarbonisation relate to the investment strategy and objectives of portfolio companies. Such statements are based on current methodologies, assumptions and expectations and are not guarantees of future performance or environmental outcomes.