Switched Source Raises $2.5 Million Seed Round to Advance Grid Modernization and Renewable Integration
Switched Source, a Chicago-based startup developing power‑electronics solutions to modernize the electric grid, recently completed a $2.5 million seed funding round that underscores growing investor confidence in its technology for enhancing grid reliability, efficiency, and renewable energy integration. The funding marks a key milestone for the company as utilities and microgrid operators increasingly seek advanced tools to address growing electrification demands and grid congestion.
Founded in 2016 by Charles Murray, Lane Nelson, Joe Lamoreux, and Hashim Al Hassan, Switched Source has pioneered distribution automation products like the Phase‑EQ, a device that dynamically balances power flow across distribution circuits to increase capacity and reduce the need for costly infrastructure upgrades. The company’s solutions help utilities better leverage existing grid assets while supporting renewable energy interconnection and load growth, making them especially relevant amid ongoing energy transitions.
The seed round provided Switched Source with capital to scale its operational capabilities, accelerate product development, and expand its market presence within the energy sector. This funding infusion is intended to support broader deployment of the company’s grid‑enhancing technologies, which enable improved reliability and efficiency across distribution networks.
Investors backing this round include a mix of clean energy and innovation‑focused organizations. Third Derivative, a climate tech accelerator and investment ecosystem that connects startups with financing and strategic resources, participated in the round. Third Derivative’s involvement reflects its commitment to advancing scalable climate and energy solutions that shorten commercialization timelines and accelerate market impact.
Additional participation came from Red Cedar Ventures, an early‑stage venture fund affiliated with the Michigan State University Research Foundation, which supports technology startups through pre‑seed and opportunity funds; Cleantech Open, a climate and clean technology accelerator that helps startups refine business models and secure capital; the Polsky Center at the University of Chicago, known for empowering early‑stage ventures through funding and mentorship; and DeltaClimeVT, a venture firm focused on climate tech investments. These investors bring a blend of operational guidance, technical expertise, and market access to help Switched Source advance its vision.
Switched Source’s growth trajectory reflects broader trends in grid modernization and distribution automation, where utilities are under pressure to meet electrification goals, integrate distributed energy resources, and enhance system resilience without incurring prohibitive costs. Products like the Phase‑EQ act as intelligent power flow controllers, akin to traffic managers for electricity, by shifting loads and mitigating phase imbalances that can strain existing infrastructure. This dynamic approach enables utilities to unlock unused capacity, optimize performance, and reduce operational bottlenecks on distribution circuits.
The company has also seen recognition outside of private investment. Switched Source has been awarded significant technology grants, including support from the Grid Resilience and Innovation Partnerships (GRIP) program, a multi‑year initiative designed to enhance grid resilience and flexibility. These grants have facilitated large‑scale deployment projects, such as multi‑year rollouts across Florida to support storm restoration efforts. Such public funding underscores the broader demand for solutions that can bolster grid performance and mitigate the impacts of extreme weather and peak load challenges.
Switched Source’s leadership team, combining deep domain expertise in power systems and clean technology, continues to refine its product roadmap to align with evolving utility needs. As the startup scales both manufacturing and commercial outreach, its technology portfolio aims to provide cost‑effective alternatives to traditional grid upgrades while enabling more seamless integration of renewables, electric vehicles, and distributed energy resources.
Beyond technology and investment news, Switched Source has recently expanded its manufacturing capacity with a new 20,000‑square‑foot facility in the Chicago area, increasing production by 150 percent to meet growing utility demand. The expansion will support production of Phase‑EQ units and help the company fulfill orders as it grows its customer base nationwide.
Investor enthusiasm and strategic funding have positioned Switched Source to play a meaningful role in reshaping how distribution systems manage power flows and support future grid needs. With capital to advance its technology and scale operations, the company aims to help utilities innovate beyond traditional infrastructure investments, improving efficiency, reliability, and flexibility in a rapidly evolving energy landscape.
