Investment in solid-state transformer (SST) developers is surging as confidence grows in the technology’s role for electrical grid upgrades.
Heron Power, a startup founded by a former Tesla executive, raised $140 million in a Series B round to build a U.S. factory. Andreessen Horowitz and Breakthrough Energy Ventures co-led the funding. DG Matrix announced a $60 million Series A round on the same day. Industrial giants ABB and Mitsubishi Heavy Industries participated in the DG Matrix investment.
These deals follow industrial conglomerate Eaton’s 2025 acquisition of SST-developer Resilient Power Systems. SSTs utilize power electronics to provide more efficient and controllable power conversion than traditional transformers. Investors are betting on the technology to resolve critical bottlenecks in connecting renewable energy sources and meeting surging electricity demand from AI data centers.