ElectronX, the energy exchange built to enable precision risk management in U.S. electricity markets, today announced it has closed a $30 million Series A led by seed round investor DCVC, and joined by leading quantitative trading firms and energy venture funds XTX Markets, Five Rings, NGP, GTS, and JACS Capital.
Returning ElectronX investors Innovation Endeavors, Systemiq Capital, Equinor Ventures, and Shell Ventures also participated in the round.
With its Series A funding, ElectronX has raised more than $55 million to develop and operate the first U.S.-regulated, direct-access power derivatives market, scheduled to launch next month.
“ElectronX’s Series A captures the rising momentum from all industry angles for financial infrastructure innovations in U.S. power markets,” said Sam Tegel, CEO of ElectronX. “We are pleased to have DCVC lead this pivotal raise and welcome premier global trading firms XTX Markets, Five Rings and GTS to our investor ranks, alongside the energy venture experts at NGP and JACS Capital. As national demand for electricity continues to strain the grid, we look forward to providing the critically necessary intraday hedging tools for today’s volatile short-term power market very soon.”
“DCVC is excited to double down on ElectronX and lead their Series A round as they head into launch phase after earning CFTC approvals,” said Ali Tamaseb, a General Partner at DCVC. “ElectronX will fill a critical gap and play a much needed role in the electricity markets. It will directly support the electrification of the American industrial base and the transition to renewables, and it will help companies respond to the massive change in power requirements resulting from increasing data center demand. Like other DCVC portfolio companies in the energy space, ElectronX is working to fill a huge need with a novel deep tech solution.”
Based in Chicago, ElectronX was granted status as both a Designated Contract Market (DCM) and Designated Clearing Organization (DCO) by the U.S. Commodity Futures Trading Commission (CFTC) in late August. Its regulated exchange and clearinghouse will offer small-sized, fully collateralized, and centrally cleared financial instruments linked to specific geographies and times of day on a direct-access platform.
ElectronX’s first products include hourly bounded futures and binary options in 1 MWh sizes for the Electric Reliability Council of Texas (ERCOT) market, enabling immediate access to intraday hedging strategies for both long- and short-volatility seekers of all types and sizes. Day-of and day-ahead contract suites mirror current physical power trading and battery asset risk management strategies, and are designed to limit losses and maximize profits in regularly observed times of price stress.
Contract suites for PJM Interconnection LLC (PJM), California Independent System Operator (CAISO), and other regional transmission organizations (RTOs) and independent system operators (ISOs) are planned for launch in 2026.
