Our Fundraising Journey by Alex Allen, Co-Founder at xWatts

This article provides a summary of a live session held on 26 January 2026, titled “Our Fundraising Journey from Research to Revenue” by Alex Allen Co-Founder at xWatts.  

In the session, Alex gave a first-hand account of xWatts’ growth, tracing its path from a university research project to various funding rounds as it now gears up for Series A. The following summary captures the key stages and themes based on his presentation. 

Company origins and research background 

xWatts began as a research project at the University of Cambridge, focused on building energy optimisation. The team compared traditional physics-based modelling with hybrid machine learning approaches in building energy simulations. Crucially, access to real buildings enabled live testing, data collection, algorithm deployment, and the measurement of actual energy savings. 

Early access to real-world environments was a major contributor to the company’s technical credibility. Rather than working solely at a conceptual level, the team demonstrated real, measurable results. The founding team structure was built with a clear separation between technical product development and commercial, sales, and fundraising responsibilities. 

Initial fundraising and accelerator stage 

The first formal fundraising milestone was joining the Antler accelerator. This phase was less about chasing revenue or scaling operations and more about the fundamental shift from academic research to a venture-backed business. 

During this time, the team focused on the heavy lifting of company formation: refining their problem definition and validating that building owners actually cared about the issue they were solving. It was a period of rigorous reality-testing. 

This stage was also about building early momentum. Letters of Intent (LOIs) were secured and initial pilot projects lined up. It was also a crash course in investor communication. Translating complex academic research into a sharp commercial narrative required moving away from explaining how the tech worked and instead proving that the problem was massive, expensive, and investable. 

Pre-seed fundraising and technical validation 

The pre-seed round was about proving that the technology could survive outside the laboratory. It’s one thing to have successful research outputs in an academic environment; it’s another to have a deployable product that works in a live commercial setting. 

During this phase, xWatts focused on installing its solution in case study buildings to demonstrate measurable energy savings. The emphasis remained firmly on validation rather than chasing a massive turnover. At this stage, investors are not necessarily looking for a finished profit-making machine; they want to know three things: does the technology actually work, is the problem as widespread in practice as claimed, and is there a path to building a commercially viable business? 

The pitch narrative during pre-seed was built on a long-term vision, anchored by concrete evidence: pilot data, an early sales pipeline, thorough market analysis, and clear signs of industry demand. This phase also involved managing valuation expectations and extensive networking to identify the right investor fit. 

Seed fundraising and shift to traction 

The Seed stage marked a major shift in investor priorities. Technical feasibility was largely assumed; attention moved to traction, customer acquisition, and the repeatability of the business model. 

The focus shifted to signing paying customers, building detailed case studies, and proving consistent value delivery across different sites. It was no longer enough to be a research-driven project; the business needed to demonstrate growth. 

The fundraising narrative moved away from how the technology differentiated itself to how the business scales and the strength of market demand. This represented a significant transition from validation to commercial traction. 

Investor mix and role of credibility 

The seed round brought together a deliberate blend of institutional and angel investors, including Cambridge Enterprise, Parkwalk Advisors, R42, Antler, and Cambridge Angels. The mix combined institutional capital and brand credibility with the domain expertise and hands-on support of angels. 

Angel investors contributed beyond capital, supporting governance, strengthening internal processes, and facilitating introductions to potential customers and future investors. Reputation and trust played a material role in accelerating fundraising timelines and enabling access to senior decision-makers. 

Team development and organisational focus 

Building a team beyond the founders became a strategic priority. Expanding the team reduced operational bottlenecks, improved decision-making, and demonstrated to investors that the company could scale sustainably. 

Key hires increased execution speed and strengthened the overall organisation. The evolution from a founder-led startup to a broader team structure supported ongoing traction and strengthened fundraising discussions. 

Preparation for Series A 

Heading into 2026, the focus is on preparing for a Series A round. The objective is to scale across entire property portfolios rather than individual buildings. 

This shift introduces new technical and organisational challenges. Addressing them involves expanding the engineering team and formalising partnerships with system integrators, facilities managers, and asset management firms. The aim is to move from bespoke installations to portfolio-wide deployment. 

In summary, the journey has progressed from university research through accelerator participation, pre-seed validation, seed-stage traction, and preparation for Series A. At each stage, priorities shifted in line with investor expectations, moving from proof of concept to commercial scalability and organisational maturity.