Critical Loop, an industrial power solutions provider specializing in battery-integrated microgrid systems, has raised $26 million in a Series A funding round, taking the company’s total committed equity and debt funding to $49 million.

The round was led by Conifer Infrastructure Partners and Hanover, with participation from Better Ventures, Climate Capital, Adapt Nation Capital, and Cyrus Ventures.

Critical Loop’s solution combines battery energy storage and its proprietary software-defined controller, Cygnus, into a modular platform. It features a scalable 1 MW battery system that integrates with grid infrastructure and distributed energy sources, enabling quick energy deployment on demand.

The funding is expected to accelerate the deployment of the company’s microgrid systems and strengthen its partnerships. Critical Loop is currently operating across California and plans to expand into additional territories.

“Grid interconnection queues are limiting industrial growth, and the current solutions are mostly slow to deploy and inflexible, which does not meet current need,” said Nick Stork, Founder and Managing Partner at Conifer Infrastructure Partners. “Critical Loop is working on a timeline that actually matches what customers are dealing with. Critical Loop is delivering a real and immediate solution while also offering customers long-term value beyond solving for today’s need for power, and this team has shown they can deliver on that.”

The company has secured a supply agreement with LG Energy Solution Vertech for U.S.-manufactured batteries to support deployments.

According to Mercom’s Annual and Q4 2025 Funding and M&A for Smart Grid report, venture capital funding for Smart Grid companies increased 6% YoY in 2025 to $1.8 billion across 68 deals, compared to $1.7 billion across 56 deals in 2024.

In 2023, Nuru, a provider of microgrid solutions, raised over $40 million in Series B equity funding. The round was led by the International Finance Corporation and included several other investors, such as the Global Energy Alliance for People and Planet, the Renewable Energy Performance Platform, Proparco, E3 Capital, Voltalia, the Schmidt Family Foundation, GAIA Impact Fund, and the Joseph Family Foundation.