Illustration: Aïda Amer/Axios
TeraWatt, a fleet charging network company, has surpassed $1 billion in private funding raised following a fresh injection of cash, the company tells Axios.
Why it matters: Building out a nationwide network of EV chargers is a capital-intensive undertaking.
Details: TeraWatt raised $100 million in capital when it launched back in May 2021, and says it has secured additional undisclosed funding to push past the $1 billion mark.
- Funds managed by Vision Ridge Partners led the fresh infusion of capital, while existing investors Keyframe Capital and Cyrus Capital increased their capital commitments.
- The funds came over the past six months, CEO Neha Palmer tells Axios, and Vision Ridge Partners will gain a board seat with its recent investment.
How it works: TeraWatt buys land near highways or other major logistics routes with the intent of building charging sites for EV fleets, including mid- and heavy-duty electric trucks.
Between the lines: TeraWatt's approach to EV charging requires quite a bit of upfront capital given it is purchasing land and building the sites itself.
- However, the owned-and-operated sites stand to provide a steady stream of revenue once operational, without the caveats of any middlemen.
The bottom line: Investors are reacting to the Inflation Reduction Act by funneling funds into the companies that stand to benefit most from tax credits, including TeraWatt.