Former Tesla executive Drew Baglino recently launched a startup called Heron Power, aimed at revolutionizing the electrical transformer sector, according to a new report. The company is currently looking to raise between $30 million and $50 million in its Series A funding round, with Capricorn Investment Group expected to lead the investment.
Baglino spent nearly two decades at Tesla, joining the company back in 2006—two years before Elon Musk officially took the helm as CEO. Over the years, Baglino was instrumental in designing Tesla’s first Model S powertrain, spearheading engineering efforts for battery storage solutions, and eventually rising to the influential role of senior vice president of powertrain and energy. He departed from Tesla in April of last year, around the same time Tesla implemented substantial workforce reductions, trimming approximately 10% of its employees.
Through Heron Power, Baglino intends to innovate within a segment of infrastructure long overdue for modernization: the electrical transformer. Traditional transformers have seen little significant change or technological evolution in over a century, resulting in global commoditization and widespread offshore manufacturing.
Solid-state transformers, the innovation at the heart of Heron Power’s strategy, offer distinct advantages over legacy designs. They significantly enhance grid stability due to their ability to precisely regulate voltage fluctuations arising from intermittent renewable sources such as solar and wind power. Additionally, these transformers are much smaller and capable of rapid adjustments in power supply, enabling more efficient and adaptive management of electrical networks.
However, Heron Power is not alone in its pursuit to overhaul this essential technology. Singapore-based competitor Amperesand is also developing advanced solid-state transformers and is concurrently negotiating a Series A funding round, following their $12.5 million seed investment in early 2024. Like Heron Power, Amperesand also employs several former Tesla executives among its leadership ranks, highlighting increased competition and interest within the transformer modernization space.
