Capalo AI has raised €3.8 million in funding to enhance its international expansion and optimize energy storage solutions using artificial intelligence.

Target Company Information

Capalo AI is a Finnish energy technology company established in 2022, located in Kuopio. The company utilizes artificial intelligence to optimize the utilization of energy storage systems and manage the trading of stored energy in the electricity markets. Recently, Capalo AI successfully raised €3.8 million in funding to support its internationalization efforts. The primary investors in this funding round were Greek venture capital firm VentureFriends and British firm PROFounders, along with contributions from existing investors including Finnish venture capital firms Inventure and Innovestor.

Capalo AI has developed a virtual power plant that integrates industrial battery systems located throughout various regions into a singular entity, enhancing the efficiency and management of energy storage systems. This helps the electric system respond to fluctuations in supply and demand, optimizing the balance between renewable energy sources and electricity consumption. By doing so, Capalo AI’s virtual power plant not only stabilizes the electricity system but also maximizes returns for investors focused on energy storage solutions while benefiting consumers through steadier electricity prices.

Industry Overview

The international market for energy storage is experiencing rapid growth, with installations of large energy storage systems increasing globally at an annual rate of approximately 70%. This surge in installations coincides with a significant increase in inquiries from operators overseeing and designin