Power2Switch said it raised $1.3 million in a round led by OCA Ventures. Hyde Park Angels, New World Ventures, I2A and several private investors participated in the investment. Power2Switch of Chicago will use the financing to hire additional employees, accelerate sales and marketing, and expand the business into other deregulated states.
POWER2SWITCH RAISES $1.3 MILLION FROM CHICAGO INVESTORS
Company Hires 4 Employees, Set to Expand into Additional Deregulated States
CHICAGO, December 1, 2011 – Power2Switch, the Chicago startup that brings awareness of energy deregulation and enables residents and businesses to reduce energy costs by switching electricity providers, has raised $1.3 million dollars in capital. Power2Switch will use the financing to hire additional employees, accelerate sales and marketing, and expand the business into other deregulated states.
“The close of this financing has enabled us to also accelerate our expansion into other states, as we launch our service in New York and Texas by mid-December 2011,” said Seyi Fabode, CEO and co-founder of Power2Switch. “We have already saved our customers just under $1 million, a number that will only increase as more people use Power2Switch.com to compare and switch to electricity providers with better rates.”
The investment round was led by OCA Ventures. Hyde Park Angels, New World Ventures and I2A, along with private investors, participated in the investment. In addition to Power2Switch co-founders Seyi Fabode and Phil Nevels, the company announced the appointment of Michael Polsky (Invenergy) and David Zyer (OCA Ventures) to its board of directors.
“Power2Switch is a very timely new business providing significant energy cost savings to its commercial and residential customers, said David Zyer, a partner at OCA Ventures. “The strength of their strategy was demonstrated by the over-subscribed investment syndicate, representing a number of top Chicago-based venture capital firms and private investors.”
With a very proven team of investors, Power2Switch plans to continue to grow their company and create more new jobs in Chicago. Power2Switch has recently hired four new employees and will soon fill another sales and marketing position.
For more information about Power2Switch, please visit Power2Switch.com.
Power2Switch empowers customers to make an informed choice about switching to a lower cost electricity provider. The company helps residents and businesses reduce energy costs by an online comparison of competitive rates and an automated switching process to new electricity suppliers. The service is provided free of charge to customers. The company also delivers greater awareness of energy deregulation, creates a competitive landscape for suppliers, and promotes the use of renewable energy. Power2Switch, part of the 2011 class at Excelerate Labs, was selected as one of five U.S. startups to participate in President Clinton’s 2011 Clinton Global Initiative and was chosen as one of the “Top-10 Up-and-Comers” at the Chicago Innovation Awards. Founded in 2010 by University of Chicago Booth School of Business graduates Seyi Fabode and Philip Nevels, Power2Switch is an Illinois Commerce Commission (ICC) licensed broker agent consultant and is certified by the Better Business Bureau (BBB).