Chicago’s ElectronX Secures $30M Series A for Power Derivatives Market

ElectronX, a Chicago-based energy markets platform, announced Friday that it had raised $30 million in a Series A round. The round was led by DCVC, a venture capital firm specializing in deep tech investments. Additional participants included XTX Markets, Five Rings, and GTS, as well as energy-focused venture funds NGP and JACS Capital. Existing investors, Innovation Endeavors, Systemiq Capital, Equinor Ventures, and Shell Ventures, also contributed. 

With this new funding the company said the total amount of capital raised exceeds $55 million, and the new funds will be used to support the roll out of the first regulated, direct-access power derivatives market in the U.S.,  expected to go live next month.

CEO Sam Tegel said “as national demand for electricity continues to strain the grid, we look forward to providing the critically necessary intraday hedging tools for today's volatile short-term power market very soon.” The company added that it plans to expand contract offerings to regional transmission organizations like PJM and CAISO, with launches anticipated in 2026.

ElectronX’s approval by the The Commodity Futures Trading Commission (CFTC) in late August marked a major milestone. The company was granted its status as both a Designated Contract Market (DCM) and a Designated Clearing Organization (DCO) which allows it to list  small-sized, fully collateralized, and centrally cleared derivatives on its regulated platform. 

To support its operational needs, ElectronX has partnered with Connamara Technologies, utilizing the EP3 platform to deliver comprehensive exchange and clearing functionalities, including transaction processing, risk management, settlement, and collateral management.

Investor Ali Tamaseb of DCVC said ElectronX “will fill a critical gap and play a much needed role in the electricity markets. It will directly support the electrification of the American industrial base and the transition to renewables” and emphasized that the platform is poised to fill a huge need in the market. 

By establishing a regulated, transparent marketplace for power derivatives, Electron X said it aims to support utilities, generators, and large power consumers seeking more efficient risk management. This development marks an interesting advancement in U.S. power market infrastructure, underscoring the platform’s effort to help enable a reliable, flexible energy grid response amid evolving demands and renewable integration.