Power2Switch snags $1.3M investment
Dec. 1, 2011
Crain's Chicago Business

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Power2Switch, a Chicago-based Internet startup that allows power users to choose among energy providers, has raised $1.3 million in funding from a group of Chicago investors.

The investment round, announced late Wednesday, was led by OCA Ventures. Hyde Park Angels, New World Ventures and I2A, along with private investors including Excelerate Labs' Troy Henikoff, also participated in the investment. In addition to Power2Switch co-founders Seyi Fabode and Phil Nevels, the company announced the appointment of Invenergy LLC founder Michael Polsky and David Zyer of OCA Ventures to its board of directors.

Power2Switch plans to use the cash infusion to hire, increase marketing and expand the business into other states where energy markets are deregulated.

“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,” Seyi Fabode, CEO and co-founder of Power2Switch, said in a statement announcing the investment round.

Meanwhile, the roster of companies partnering with the energy-shopping service continues to grow. Power2Switch on Wednesday came to terms with Ohio-based energy company First Energy, according to a Power2Switch spokesman.

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.

Read more Crain's coverage of Power2Switch here.

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