Form Energy closed its Series G round for $750 million at a pre-money valuation of $1.75 billion, or approximately $2.5 billion after the round. In October 2024, the company was valued at $3 billion before the round and $3.4 billion after.
The round was announced on August 12th, led by T. Rowe Price, with new names including Sequoia, Franklin Templeton, Janus Henderson, and PEAK6. Form Energy has raised over $2 billion in total.
The business has grown over the past year and a half. The contracted supply portfolio has increased from approximately 20 to 80 GWh. The largest positions in this portfolio are 30 GWh for Google's Minnesota data center under an agreement with Xcel Energy and 12 GWh for Crusoe, with deliveries starting in 2027.
A participant in the round explained the decline as follows: the valuation is a lagging indicator. In 2024, significantly more capital was flowing into clean energy. Today, the money is concentrated on AI, and Form Energy isn't considered a direct beneficiary of AI. However, its two largest contracts are for data centers.
Form Energy's iron-air batteries hold a charge for over 100 hours and cover multi-day generation gaps, which lithium isn't designed to handle. For us, this is the energy portion of our portfolio, catering to data center demand: the company has already contracted for the demand, but the market has lowered its valuation.
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