TLDR
- Daylight raised $75 million, including $15 million in equity and $60 million in loans.
- Daylight connects energy devices like solar and EVs for rewards on its app.
- Framework Ventures led the round with participation from notable investors.
- Daylight introduces DayFi, a protocol linking yield to electricity revenue.
Daylight, a decentralized physical infrastructure network (DePIN) project focused on energy distribution, has raised $75 million in a funding round. The round was led by Framework Ventures, with participation from several other investors. The funds will help accelerate Daylight’s efforts to build a decentralized energy infrastructure network, marking a significant step forward for the company and its vision in the energy sector.
Breakdown of the $75 Million Capital Raise
Daylight’s $75 million funding consists of two key components: $15 million in equity and $60 million in non-recourse project finance capital. The equity portion, which amounts to $15 million, was led by Framework Ventures. Notable investors involved in this part of the round include A16z crypto, Lerer Hippeau, M13, Room40 Ventures, EV3, Crucible Capital, Coinbase Ventures, and Not Boring Capital.
The $60 million project finance capital is structured as a loan to be repaid with earnings. This portion was led by Turtle Hill Capital and is secured against infrastructure assets directly tied to Daylight’s operations. This structure ensures that repayment is tied to the performance of the project, rather than requiring repayment from Daylight’s other resources.
Daylight’s Decentralized Energy Network
Founded in 2022, Daylight is working to create a decentralized energy protocol. The company enables users to connect their energy devices, such as solar inverters, batteries, thermostats, and electric vehicles, to the Daylight app. This connectivity allows users to earn rewards for their participation in the decentralized energy network.
The DePIN model behind Daylight aims to decentralize the control and ownership of physical infrastructure in the real world. In the context of energy distribution, this could reshape how energy is generated, stored, and consumed. Daylight’s approach integrates blockchain technology, ensuring transparency and offering an incentive-based system to encourage greater adoption of distributed energy solutions.
Role of Crypto in Energy Infrastructure
According to Daylight CEO Jason Badeaux, the company’s goal is to build the largest decentralized energy network in the world. To achieve this, Daylight plans to incentivize users to adopt distributed energy resources, a goal that is crucial to scaling the network. “Crypto is uniquely good at doing those two things,” said Badeaux. He explained that the use of blockchain technology helps align incentives, reduce costs, and create an ecosystem built on transparency and shared economic benefits.
The decentralized nature of the project also promises a more sustainable and equitable model of energy distribution. By allowing users to control and earn rewards from their energy devices, Daylight is tapping into the growing interest in decentralized finance (DeFi) and blockchain technology’s potential to transform traditional industries.
Introduction of DayFi and New Opportunities for Investors
As part of its strategy to enhance its energy infrastructure offering, Daylight is also introducing DayFi, a yield protocol tied to the Daylight Network’s expanding portfolio of solar and storage systems. This new offering allows investors to earn yield directly linked to electricity revenues generated by the network. With this, Daylight aims to open up energy infrastructure to decentralized finance (DeFi) and offer a new avenue for investors to participate in energy projects.
DayFi represents a significant development in the DePIN space, combining energy generation and storage with blockchain’s ability to create financial products. Through DayFi, Daylight can integrate more investors into its ecosystem, further supporting its growth and contributing to the scalability of its energy distribution network.
Looking Ahead for Daylight
The new funding will support Daylight’s continued development and the scaling of its decentralized energy network. With the backing of Framework Ventures and other investors, Daylight is positioning itself as a major player in the future of energy infrastructure.
The company’s innovative approach to integrating blockchain technology with energy distribution has the potential to change how energy is accessed and managed, especially as more individuals and organizations seek alternatives to traditional energy systems.
