Ethical Electric, a renewable energy provider that connects consumers to 100% renewable energy with no change in their monthly payment routine, has raised $11 million in Series A funding from a syndicate of investors led by entrepreneur Matthew Palevsky, who will also join the company's Board of Directors.
Ethical Electric previously raised $2.4 million of funding in 2012—an investment that was led by Northwest Energy Angels and used by the company to accelerate operations, grow its team and launch marketing campaigns in its initial markets. The retail energy supplier participates in the wholesale energy markets in the Mid-Atlantic, Northeast and New England.
The $11 million round is the seventh largest VC financing in the state of Maryland in the past year, a time period that has seen over $310 million of venture capital invested in Maryland-based companies, according to the PitchBook Platform. The largest Maryland-based financing during the last year belongs to Videology, a video advertising platform that raised $68 million in Series D funding in July 2013. Though Ethical Electric's funding round ranks near the top of Maryland's recent VC deals in terms of deal size, financings involving energy companies are a rarity in the state, as the industry has accounted for only 2% of its VC deal flow in the past five years. The industries that have accounted for the largest portions of the state's deal flow during that time include IT (45%), healthcare (33%) and B2B (10%).