Sydney-based energy startup Cable has secured AUD$4 million in a pre-seed funding round to help small businesses lower their electricity costs. The investment was led by UK climate fund Systemiq Capital and Black Nova VC, with participation from several angel investors. Cable aims to bridge the gap for small and medium-sized enterprises (SMEs) that have largely missed out on the benefits of the distributed energy grid.
Addressing a Gap in the Energy Market
Australia's energy landscape is shifting towards distributed assets like rooftop solar and batteries, yet SMEs have been unable to capitalize on this trend. Unlike homeowners, these businesses often face significant barriers, including a lack of suitable roof space, insufficient capital for hardware, or uncooperative landlords. This has effectively locked them out of a more efficient and cost-effective energy system.
Small businesses are a historically underserved segment in the traditional energy retail market. They are too small to command the bespoke quotes and tight margins offered to large commercial clients but lack the scale of the residential market. This leaves them caught in the middle, facing high energy bills without access to innovative savings solutions.
Cable's Innovative Business Model
Cable's model directly tackles these challenges by providing a battery storage system to customers with no upfront cost. The startup owns and installs the hardware at the business's premises, removing the significant capital barrier that prevents many SMEs from investing in energy technology. This approach allows businesses to immediately access the benefits of on-site energy storage.
Behind this simple proposition is a powerful software platform that optimizes battery usage based on wholesale market dynamics. The system charges the battery when spot prices are low and discharges it during expensive peak periods. This strategy creates a natural hedge against market volatility, generating savings that are then passed on to the customer.
The customer experience is designed for simplicity, with businesses paying only for the energy they consume. Founder Dominic Reardon describes the service as a "zero-risk, zero-complexity, zero-capex" way for SMEs to engage with the distributed grid. This model frees up both time and cash for business owners, allowing them to focus on their core operations.
Funding and Future Expansion
The $4 million pre-seed funding round provides Cable with the capital to scale its operations and technology. The investment is notably the first in an Australian company for UK-based Systemiq Capital, highlighting the global interest in Cable's solution. Black Nova VC and a group of angel investors from the startup and infrastructure sectors also participated in the round.
Following a successful six-month private beta, Cable is now launching a public beta for businesses in the Sydney metropolitan area. During the trial phase, the company demonstrated its ability to reduce annual electricity bills by as much as 40 percent for its clients. The new funding will support the expansion of this public beta program.
Cable is initially targeting SMEs with annual electricity bills ranging from $5,000 to $50,000, a category that includes cafes, breweries, and retailers. While the current focus is on the Sydney area, the company has clear ambitions to expand into other markets in the future. This strategic growth will be powered by the recent capital injection and proven results.
Cable's innovative approach offers a promising solution for small businesses that have been excluded from the renewable energy transition. By removing financial and logistical barriers, the company is democratizing access to cheaper, more efficient power for a vital part of the economy. This recent funding not only validates Cable's business model but also signals a broader shift towards inclusive and intelligent energy management systems.