Heron Power Secures $140M Series B Funding to Modernize Electrical Transformers

Why It Matters

The capital accelerates deployment of solid‑state transformers, addressing a critical transformer shortage while offering more efficient, flexible power conversion for renewable and data‑center markets.

Key Takeaways

• $140M Series B funding from Andreessen Horowitz, Breakthrough Energy.
• Planned factory to output 40 GW of medium‑voltage SSTs by 2027.
• 50 GW of orders secured from solar, battery, data‑center customers.
• Solid‑state transformers replace steel cores, cut weight, improve flexibility.
• Competing startups DG Matrix, Resilient Power attract investors.

Pulse Analysis

The global power grid is confronting a growing bottleneck: traditional iron‑core transformers are in short supply and struggle to keep pace with surging electricity demand. Heron Power, founded by former Tesla engineer Drew Baglino, is betting on solid‑state transformer (SST) technology to alleviate that strain. In February 2026 the company closed a $140 million Series B round led by Andreessen Horowitz’s American Dynamism Fund and Breakthrough Energy Ventures. The capital will fund a new U.S. manufacturing plant designed to produce up to 40 gigawatts of medium‑voltage SSTs annually, with full‑scale output slated for late 2027.

Heron Power’s SSTs replace bulky copper windings and grain‑oriented steel with silicon‑carbide and gallium‑arsenide semiconductors, delivering lighter, more compact units that can regulate voltage, frequency and power quality in real time. This flexibility is especially valuable for solar farms, battery storage sites and hyperscale data‑center campuses, where the company has already secured roughly 50 gigawatts of purchase commitments from developers such as Intersect Power and Crusoe. Rival firms like DG Matrix, backed by a $60 million Series A, and the recently acquired Resilient Power underscore a rapidly consolidating market.

The influx of venture capital signals that investors see solid‑state transformers as a critical enabler of the clean‑energy transition and the data‑center boom. By leveraging the same semiconductor supply chains that have driven down costs for electric vehicles, SSTs promise economics comparable to legacy equipment without a premium. As early adopters validate performance, utilities—historically cautious—may be compelled to replace aging infrastructure, opening a multi‑billion‑dollar opportunity. Heron Power’s aggressive production timeline and secured order book position it to capture a sizable share of this emerging segment.

Deal Summary

Heron Power, a solid‑state transformer startup founded by former Tesla engineer Drew Baglino, announced a $140 million Series B round led by Andreessen Horowitz’s American Dynamism Fund and Breakthrough Energy Ventures. The capital will fund a new factory to produce 40 GW of medium‑voltage power‑conversion gear and accelerate production slated for 2027.