Sustech, a Japanese startup, has seen its valuation soar to over $800 million in the latest funding round
Sustech, a Japanese energy technology startup, is expected to raise $50m from investors. This will value the company at over $800m, according to people familiar with the matter. The Tokyo-based company wants to tap into the fast-growing global demand for cleaner energy.
Sources said that the valuation of Sustech, which is 124 billion Japanese yen (816 million dollars), in its fourth fund-raising round, represents a 3.5 times increase from 35 billion yen last year. This brings it closer to the group of Japanese unicorns valued at over $1 billion.
Sources declined to identify themselves as it is a private matter.
The International Energy Agency (IEA) estimates that the investment in clean energy technologies and infrastructure will reach $2 trillion in this year, twice as much as the amount invested in fossil fuels.
Sustech, founded in 2021 by a group of engineers and scientists from the University of California at Berkeley, builds renewable energy plants that reduce carbon emissions for clients. It also develops artificial-intelligence (AI) systems to predict power generation in order to maximise profits on wholesale power sales.
Sources say that NGK Insulators led the latest funding round, as it is already partnered with Sustech for energy storage plants.
Sources said that the capital raised would be used to fund the construction and development of AI for power grid stability. This is becoming increasingly important as wind and solar energy are added to power grids.
Katsunori Sago, former SoftBank Group Chief Strategy Officer and startup investor Katsunori Sago, are some of the 30 investors who have invested in Sustech. Sources said that the firm aims to debut on Nasdaq by early 2028.
The company launched a 150-billion-yen fund in partnership with Tokyu Land, a property developer. It also established a 20-billion yen renewable energy fund in partnership with Ryobi Holdings, a transport operator. (Reporting and editing by Shri Navaratnam; $1 = 151.9300yen)
(source: Reuters)
