Base Power, Founded by Zach Dell, Raises $1 Billion and Reaches $13 Billion Valuation

Base Power was founded in 2023 by Michael Dell's son Zach Dell

Michael Dell’s son Zach Dell is betting big on home batteries. His three-year-old startup, Base Power, aims to replace expensive gas-powered home generators with battery systems that provide backup power during outages while also helping reduce electricity bills. Base says it wants to install its battery systems in neighborhoods across the US and eventually expand to Europe, as rising electricity demand driven by AI puts more pressure on power grids. The company is currently valued at $13 billion after raising $1 billion in a Series D funding round. The latest funding round was led by Ribbit Capital, Addition, Valor Equity Partners and JPMorgan Chase's Strategic Investment Group. Existing investors, including Thrive Capital, Andreessen Horowitz (a16z), Lightspeed, Trust Ventures and CapitalG, also participated. While Michael Dell is not involved in Base Power's operations, Zach Dell said his father serves as a mentor.

Zach Dell’s Base Power wants a battery in every backyard

Base Power was founded in 2023 by Zach Dell and has grown rapidly. The Austin-based company has increased installations from one battery system a day to more than 100 daily and now serves over 30,000 customers. "We want to bring Base to every neighborhood in America over time," Dell told Fortune. "The scale of the opportunity is just massive, and of course, we do have global ambitions. We think markets like the U.K., Germany, Australia, and potentially others are attractive as well." The company recently opened its first battery factory in Austin and is building a second, larger facility expected to be completed in 2027.

Michael Dell’s son’s startups aims to offer alternatives to costly generators

Instead of selling traditional backup generators, Base installs battery systems that store electricity and can keep homes powered during outages for up to two or three days, depending on usage. Customers pay an installation fee starting at $695 and a monthly membership fee of $19, rather than buying a generator that can cost $15,000 or more. "Our business model, which is very unique, is that we're really an infrastructure company," Dell said. "We own and operate the assets in the wholesale power markets. That's really where we make our money, not by trying to sell the consumer something at a really high-margin upfront cost." The company says its new battery stores 39.2 kilowatt-hours of electricity, more than many competing products. Base says its business is becoming more relevant as electricity demand rises because of AI data centres and increasing pressure on power grids. "We're charging the batteries when prices on the grid are low, and we're discharging the batteries with demand when prices on the grid are high," Dell said. In just three years, the company has expanded from Texas into Illinois and plans to enter more US states next year. In some new markets, Base is offering battery installation for as little as $95 to attract more customers.