Electricity Startup Voltus Valued at $1.3 Billion in SPAC Deal
Voltus Is the Latest Green Energy SPAC Deal
Voltus, a maker of electricity systems which connect to the power grid, is going public via a SPAC deal with Broadscale Acquisition (SCLE). The transaction gives Voltus a valuation of around $1.3 billion. The startup makes software to create small electricity systems for vehicle charging and power usage and storage.
Voltus is the latest green energy startup to go public via a SPAC deal. SPACs have raised $150 billion so far this year. That is close to double what was raised in 2020, which was also a record year for SPACs.
Voltus Saves Companies Money
Voltus partners with grid operators in the US and Canada to connect its distributed energy resources to bigger electricity markets. As a result, Voltus can provide cheaper and more reliable energy. Voltus counts Coca-Cola (KO) and Home Depot (HD) as customers. The company is creating a market in which clients can sell excess electricity back to the grid. Proponents of distributed energy resources say they will play a key role in weaning the world off of fossil fuels.
As part of its SPAC deal, Voltus is getting $100 million from outside investors including Equinor Ventures, Obvious Ventures, and Twitter (TWTR) co-founder Ev Williams. The company will use proceeds from the deal to grow in the US and potentially internationally.
Voltus and Broadscale Acquisition Attract Investors
SPAC deals have been booming this year, but some investors have felt hesitant about these deals recently due to concerns about SPAC insiders reaping more benefits than outside investors. To appeal to more investors, Voltus and Broadscale Acquisition are structuring the deal to give themselves more exposure and more incentive to help the stock climb.
The energy market is growing as companies and countries move toward a greener future. Voltus and Broadscale Acquisition are aiming to capitalize on this trend, betting that investors will also want in on the opportunity and their SPAC deal.
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