We have been involved with the TESVOLT GmbH fund managed by us since the end of the first quarter of this year. The fast-growing start-up from Wittenberg in the German state of Saxony-Anhalt develops and produces innovative battery storage systems. As part of our commitment, several million Euros of venture capital are flowing into the company.
The following points were crucial for our investment decision:
We found TESVOLT to have an outstanding and experienced founder/management team. We were impressed not only by the professional competence but also by the track record the management could present us with. Both founders were already successful entrepreneurs prior to TESVOLT and could bring their experience to TESVOLT. In a relatively short time – the start-up is just 3 years old – the team succeeded in building its own innovative product portfolio and establishing this on the international market. As a result, sales rose into the millions, renowned cooperation partners (such as SMA solar and Samsung) became bound to the company, building a professional team of more than 20 employees. Very impressive!
TESVOLT develops and manufactures flexibly usable, high capacity lithium batteries for "commercial energy storage systems" (typically greater than 20 kWh), which are compatible with conventional battery inverters. During this process, the start-up has improved existing technologies and jointly developed these further with its cooperation partners. The USP of the storage system is its flexible use for all load types, volumes, and power feed sources. In addition to low-voltage memory, battery storage systems are also available in the high-voltage sector as of this year, which generally require less power electronics and are therefore particularly attractive from a cost perspective.
The technological game changer in all the energy storage systems from TESVOLT is the active bi-directional battery management system. Each battery storage system has a battery management system that ensures uniform load distribution in particular (identical charging of all connected cells), which ensures the functioning of the battery. TESVOLT’s active two-way process delivers a significant increase in the efficiency of electrochemical lithium batteries and thus offers a significant improvement in the overall efficiency compared to the competitors’ battery storage units with conventional battery management systems.
TESVOLT operates in a dynamically growing market. According to current market studies, the global energy storage market for stationary applications is expected to grow from its current level of a few hundred million US dollars to about 2.5 billion US dollars in 2020. Our portfolio company TESVOLT and its internationally active sales team is already present in the relevant markets around the world with the latest products. For example, TESVOLT delivered the world's largest decentralized 2.68 MWh OFF-grid battery installation to date to Rwanda in 2016.
We are convinced that TESVOLT has the secret needed to strengthen its market position in the years ahead and to establish itself as the market leader in the relevant market sector. We look forward to pursuing this path with TESVOLT and to participate in many places and support along the way.