According to a recent report, former Tesla executive Drew Baglino has launched a new startup, Heron Power, focused on developing solid-state transformers for the electric grid.
The company is reportedly seeking to raise between $30 million and $50 million in a Series A funding round, with Capricorn Investment Group expected to lead the raise.
Baglino, who joined Tesla in 2006—two years before Elon Musk became CEO—played a key role in the company’s evolution. He helped design the powertrain for the original Model S and later led engineering for Tesla’s battery storage products, eventually becoming Senior Vice President of Powertrain and Energy. He departed the company in April 2024, around the same time Tesla cut 10% of its workforce.
With Heron Power, Baglino will work on a part of the electrical grid, that hasn’t seen much innovation for over a century.
In founding Heron Power, Baglino is tackling a part of the electrical grid that hasn’t seen much innovation in over a century. Traditional transformers have long been commoditized and are now predominantly manufactured overseas. In contrast, solid-state transformers offer a leap forward in capability: they can manage voltage fluctuations from renewable sources like solar and wind, switch between power sources rapidly, and are far more compact. Crucially, they can also be actively managed to enhance grid reliability.
However, Heron Power is not the only startup planning to revolutionize the transformer market. A Singapore-based startup Amperesand, which also includes former Tesla executives among its leadership, is currently raising a Series A after closing a $12.5 million seed round in early 2024.
