In a groundbreaking development for the energy sector, Heron Power, a startup founded by former Tesla executive Drew Baglino, has successfully closed a $38 million Series A funding round. Announced on May 29, 2025, this investment aims to accelerate the company's mission to transform electrical grid infrastructure with cutting-edge technology. The round was led by Capricorn Investment Group’s Technology Impact Fund, with participation from prominent investors such as Breakthrough Energy Ventures and Tesla co-founder JB Straubel.
Heron Power is focusing on the development of solid-state transformers, a modern alternative to the century-old analog models currently in use. These innovative transformers promise to be more compact, responsive, and efficient, addressing the growing demands of renewable energy integration and data center connectivity. The company’s vision is to create a scalable, reliable, and software-integrated grid for the 21st century.
With energy demands surging and traditional infrastructure struggling to keep pace, Heron Power’s solutions are poised to play a critical role in the transition to an all-electric future. The startup, based in Scotts Valley, California, is developing industrial power electronics designed to make grid connections cheaper, faster, and smarter, ultimately reducing energy costs for consumers and businesses alike.
The $38 million raise brings Heron Power’s total funding to $43 million, providing substantial resources to advance its research and development efforts. Backed by industry heavyweights, including former Tesla CFO Zach Kirkhorn, the company is well-positioned to tackle the challenges of modernizing the electrical grid and supporting the global shift toward sustainable energy.
Drew Baglino, CEO of Heron Power, emphasized the urgent need for innovation in energy infrastructure during the announcement. He highlighted how outdated systems are holding back the electric economy and driving up costs, underscoring the startup’s commitment to delivering transformative hardware solutions.
As Heron Power moves forward, the energy sector watches closely, anticipating the impact of its technology on renewable energy adoption and grid reliability. This funding milestone marks a significant step toward redefining how power is managed and distributed in an increasingly electrified world.
Maria Lourdes
