Key Takeaways
- • Crusoe Energy Systems closed a $350 million Series C equity offering led by climate technology venture firm G2 Venture Partners, plus credit facilities expandable up to $155 million with SVB Capital, Sparkfund and Generate Capital, bringing total new capital to $505 million.
- • The equity round included returning investors such as Valor Equity Partners, Lowercarbon Capital, Polychain Capital, Bain Capital Ventures and Founders Fund, and new investors including Inclusive Capital Partners, Engine No. 1 and Mitsui & Co.
- • Proceeds fund expansion of Digital Flare Mitigation data centers, which Crusoe says have prevented an estimated 2.5 billion cubic feet of flaring across 86 facilities, and the public launch of CrusoeCloud, a GPU-based HPC cloud platform scheduled for later in 2022.
- • G2VP joins Crusoe's Board of Directors alongside Valor Equity Partners, Bain Capital Ventures, KCK Group and co-founders Chase Lochmiller and Cully Cavness.
- • Crusoe plans to grow headcount from 157 employees to an estimated 250 by the end of 2022.
Summary
Crusoe Energy Systems Inc. announced it has closed a $350 million Series C equity offering, led by climate technology venture capital firm G2 Venture Partners (G2VP), according to a Business Wire release dated April 21, 2022. The company also closed credit facilities expandable up to $155 million with SVB Capital, Sparkfund and Generate Capital to finance energy systems related to flare mitigation, bringing total new capital to $505 million. Crusoe was advised by Ducera Partners on the debt raises; it did not engage a financial advisor for the equity round.
The equity financing drew a broad syndicate spanning technology, energy, climate and crypto investors. Returning participants include Valor Equity Partners, Lowercarbon Capital, Polychain Capital, Bain Capital Ventures, Founders Fund, MCJ Collective, Winklevoss Capital, Zigg Capital, DRW Venture Capital, Atreides Management, Exor Seeds, CMT Digital and Upper90. New investors include Inclusive Capital Partners, Engine No. 1, Tao Capital, Felicis Ventures, Castle Island Ventures, Mitsui & Co. and Robert Downey Jr.'s FootPrint Coalition Ventures. Following the financing, G2VP joins Crusoe's Board alongside Valor Equity Partners, Bain Capital Ventures, KCK Group and co-founders Chase Lochmiller and Cully Cavness.
Crusoe says the capital will expand its Digital Flare Mitigation data centers, which capture flared gas that would otherwise emit methane, a greenhouse gas the company notes traps 82.5 times more heat than CO2 over 20 years. The company reports its 86 facilities have prevented an estimated 2.5 billion cubic feet of flaring, achieve up to 99.89% elimination of methane emissions, and have a capacity to reduce CO2-equivalent emissions by an estimated 650,000 metric tons per year. The funding also supports Crusoe's Bitcoin mining and cloud computing infrastructure.
The financing follows the alpha launch of CrusoeCloud, a high-performance computing cloud platform for workloads including graphical rendering, AI research, machine learning and drug discovery. The alpha offers Nvidia A100 and A40 virtual machine instances, and the company plans a public launch later in 2022. CEO Chase Lochmiller said the capital enables Crusoe to expand and diversify its energy sources, computing workloads and vertical integration. Ben Kortlang, Partner at G2VP, said the firm concluded after a deep review of flare mitigation and modular data center technologies that Crusoe is the clear leader in scale, operational excellence and talent.
Crusoe plans to grow from 157 employees today to an estimated 250 by the end of 2022.
The equity financing drew a broad syndicate spanning technology, energy, climate and crypto investors. Returning participants include Valor Equity Partners, Lowercarbon Capital, Polychain Capital, Bain Capital Ventures, Founders Fund, MCJ Collective, Winklevoss Capital, Zigg Capital, DRW Venture Capital, Atreides Management, Exor Seeds, CMT Digital and Upper90. New investors include Inclusive Capital Partners, Engine No. 1, Tao Capital, Felicis Ventures, Castle Island Ventures, Mitsui & Co. and Robert Downey Jr.'s FootPrint Coalition Ventures. Following the financing, G2VP joins Crusoe's Board alongside Valor Equity Partners, Bain Capital Ventures, KCK Group and co-founders Chase Lochmiller and Cully Cavness.
Crusoe says the capital will expand its Digital Flare Mitigation data centers, which capture flared gas that would otherwise emit methane, a greenhouse gas the company notes traps 82.5 times more heat than CO2 over 20 years. The company reports its 86 facilities have prevented an estimated 2.5 billion cubic feet of flaring, achieve up to 99.89% elimination of methane emissions, and have a capacity to reduce CO2-equivalent emissions by an estimated 650,000 metric tons per year. The funding also supports Crusoe's Bitcoin mining and cloud computing infrastructure.
The financing follows the alpha launch of CrusoeCloud, a high-performance computing cloud platform for workloads including graphical rendering, AI research, machine learning and drug discovery. The alpha offers Nvidia A100 and A40 virtual machine instances, and the company plans a public launch later in 2022. CEO Chase Lochmiller said the capital enables Crusoe to expand and diversify its energy sources, computing workloads and vertical integration. Ben Kortlang, Partner at G2VP, said the firm concluded after a deep review of flare mitigation and modular data center technologies that Crusoe is the clear leader in scale, operational excellence and talent.
Crusoe plans to grow from 157 employees today to an estimated 250 by the end of 2022.
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