An Atlanta startup has confirmed it raised a major investment to expand its hydropower projects.
Emrgy Inc.’s $18.4 million funding round was led by Oval Park Capital, a Raleigh, North Carolina-based firm that focuses on diverse founders in the Southeast. Fifth Wall, Blitzscaling Ventures, Overlay Capital and Veriten also participated, according to an April 11 news release.
Atlanta Inno first reported Emrgy was raising $27.4 million in February based on a filing with the U.S. Securities and Exchange Commission. That amount includes the conversion of convertible notes in addition to its $18.4 million in new capital, according to a spokesperson.
Emrgy said it has innovative hardware and software that works with existing water infrastructure to improve the amount of energy produced from hydro projects. Emrgy systems are created through different units that can be customized depending on the size of the waterway.
Oval Park Capital Managing Partner Justin Wright-Eakes said Emrgy has the potential to “reintroduce hydropower to the global renewable energy conversation.”
The funding round is an example of the billions of dollars of capital that are flowing toward the clean energy sector, both in the private and public sectors.
Georgia is leading the country in new clean energy projects since the passage of the Inflation Reduction Act, which provides tax incentives for clean tech, according to a report from the nonprofit Climate Power. Atlanta’s startup ecosystem and the state’s manufacturing industry are both benefiting from this trend.
The $18.4 million is a win for the local startup scene. Venture capital investments took a nosedive during 2022, and startups are consistently raising smaller rounds than those of 2021, a lucrative year for tech companies.
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Emrgy will also use the funding round to open a turbine assembly plant in Colorado and hire 30 engineers and operations specialists there by the end of the year. The startup has 45 employees, about half of whom are based in its Atlanta headquarters, a spokesperson said. It has already hired 15 people with the capital infusion.
CEO Emily Morris founded the company in 2014. Asterra Partners Founder Jennifer McFarlane and former SolarCity Corp. Chief Financial Officer Bob Kelly joined the board of directors.
Emrgy is currently in the 100+ Accelerator, a program for startups that are revamping supply chains to be more sustainable. It’s also one of the finalists in Atlanta Inno Madness, a friendly bracket competition among local startups.
