Source: Fortune
Summary
Zach Dell, son of Michael Dell, has raised $1 billion in a Series D funding round for his company Base, which aims to install home battery systems in every neighborhood in America. The company’s valuation has spiked to $13 billion from $4 billion in less than a year. Base offers a one-stop shop for home electricity and backup power, with a flat monthly membership fee of $19 and an installation fee of no more than $695. The company has gone from installing one battery system daily to over 100 per day, with over 30,000 total customers. Base plans to expand to additional states next year and has global ambitions.
Our Reading
The numbers tell one story. Base’s valuation has increased by $9 billion in less than a year, with over 30,000 customers and a plan to expand to additional states. Zach Dell’s goal is to install a Base Power home battery system in every backyard in America, with a unique business model that focuses on offering electricity services and charging an installation fee and a flat monthly membership fee. The company’s investors are long-term oriented thinkers, with a focus on executing into the massive opportunity. Dell’s famous father, Michael, is not involved in Base, but serves as a mentor. The company’s growth is driven by its ability to offer a one-stop shop for home electricity and backup power, with a focus on strengthening local power grids and keeping electricity going in the event of a grid failure. The company’s new battery can store 39.2 kilowatt-hours of electricity, significantly more than most of its competitors. As Base enters new markets, it will experiment with pricing based on market signals.
Base’s growth is a signal that the residential retail electricity market in the U.S. is ripe for disruption.
Author: Evan Null
