Momentum advises international investor consortium on EUR 20 million Series B financing round of thermal storage start-up Kraftblock
Transaction boutique Momentum has advised an international consortium of investors on a EUR 20 million venture capital investment in Kraftblock, a manufacturer of sustainable high-temperature energy storage systems based in Saarland, Germany. The new investors advised by Momentum include Finindus, A&G Energy Tech Fund, TechEnergy Ventures and Future Industry Ventures. The consortium was led by Shell Ventures from the Netherlands.
“This financing round is on the one hand a very good example of how attractive German technology and German start-ups are for foreign investors and on the other hand how important investments in energy efficiency are from the point of view of competitiveness and environmental protection,” says Venture Capital and M&A Partner Philipp Weber.
Through its patented and sustainable thermal storage technology, Kraftblock enables the energy transition and the decarbonization of processes in the energy sector and any industries from food to chemicals, paper, ceramic and steel. The storage time-shifts waste heat or renewable power to replace fossil fuels with green heat up to over 1,300°C (2,500°F). Recently, Kraftblock announced a project with PepsiCo and Eneco to build the world’s largest commercial high-temperature storage at a food plant. With the successful Series B financing round, global players complement existing well-known investors. After the start-up financing by the Saarland venture financing company (SWG) in 2015, the seed fund Freigeist Capital from Frank Thelen and 2020 Koolen Industries from the Netherlands followed in 2018.
Moritz Schwarz, Investor von Future Industry Ventures from Berlin, explains the relevance and attractiveness of the technology: “Cost-effective net-zero process heat is a missing component for many manufacturing companies to reach their ambitious sustainability targets and Kraftblock finally provides a revolutionary solution to this problem.”
Kraftblock’s mission is to decarbonize high-temperature energy. “We have created a great opportunity to pursue our goal of reducing carbon emissions,” says CEO and co-founder Dr Martin Schichtel. “The past few years, the extreme weather conditions due to climate change have given us a glimpse of the devastating impact it has on the world, and we need to do all we can to stop it.”
“Kraftblock’s role is to stop emissions from energy-intensive heat processes. Heat is responsible for 40% of energy-related emissions globally and significantly more in industry. This investment demonstrates the high demand for our technology and helps us grow faster to reduce emissions at scale in the industrial and energy sectors.”
Susanne König, CFO and co-founder of Kraftblock, highlights the significance of this financing round: “At a time when there are very limited funding opportunities for start-ups, we are proud to have closed this Series B round. It shows the resilience and solid business of Kraftblock and proves our great potential.” The investment will be used for example to further expand the team and add production capability.
The contact to the investor consortium came about through a personal recommendation of Philipp Weber by an existing client. Momentum regularly advises national and international investors and start-ups on venture capital equity financing rounds, convertible loans, SAFE agreements, venture debt and media for equity.
Kraftblock provides multifunctional high-temperature energy storage systems for industrial applications. Kraftblock’s technology replaces the use of fossil fuels and increases the energy efficiency of available process heat. Therefore, Kraftblock systems are a key element of the energy transition. Kraftblock GmbH, located in Saarland, Germany, was founded in 2014 by chemist Dr. Martin Schichtel and economist Dr. Susanne König. Visit www.kraftblock.com to learn more.
Momentum was founded in January 2021 as a boutique firm of experienced lawyers specializing in transactions. We provide efficient, proactive and pragmatic advice in the areas of M&A, private equity, venture capital, corporate law and tax law. As entrepreneurial lawyers, we understand our clients and their specific needs and help to bring transactions to fruition. Our strong national and international partner network enables us to offer transaction advice as a one-stop-shop.
Venture Capital Deal Team Momentum:
Philipp Weber, Partner (Venture Capital, M&A, Corporate Law)
Tatjana Jäckel, Business Lawyer (Corporate Law, Venture Capital, Commercial)
Dr. Philipp Gold, Partner, Tax Advisor (Tax Law, Corporate Law, M&A)
Philipp Weber, Partner
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