Israeli startup eVolution Networks, a pioneer in cellular network energy saving technology, has raised $22.5 million from Warren Buffett’s Berkshire Hathaway subsidiary IES Holding, and GE Ventures.
The startup was founded in Israel in 2011 and had previously raised $4 million from Breslau Capital Partners, a New York-based value-driven private investment firm co-founded by Jonathan Bettsak, Gadi Peleg and Roberto Jimenez, with offices in Tel Aviv and Panama.
eVolution Networks is the world’s first company to provide operators with a purely software-based solution that slashes energy consumption on the base station level, providing unmatched savings and the ability to dramatically reduce energy consumption by up to 35% annually, even for operators that already employ efficient cooling solutions and which have already implemented energy-saving software features provided by equipment vendors.
eVolution plans to use the new funds to expand its energy savings solutions for Mobile Network Operators (MNOs), worldwide, and promote its software to new industries. eVolution’s Smart Energy Solution is a software-based solution that analyzes the mobile network’s traffic needs and adjusts the use of the network’s resources based on real-time demand from subscribers. This adaptive and unique approach to managing the network’s resources has been deployed by Tier-1 operators such as Telefonica Group and has proven to save millions of dollars annually on energy bills.
“Energy costs are a huge problem for mobile operators,” said Roy Morad, CEO of eVolution Networks. “Operators are constantly forced to expand their network to support the growing data demand from subscribers and the Internet of Things (IOT). However, the way networks are designed today doesn’t allow operators to wisely “right size” their energy use according to live traffic demand. eVolution Networks’ Smart Energy Solution eliminates this problem.”
“This team’s management experience and strong technical background have helped establish eVolution Networks as a leader in the telecommunications energy efficiency market. eVolution Networks is poised for tremendous growth as more customers and business partners realize the benefits provided by the technology,” said Bill Fehrman, president of Berkshire Hathaway Energy subsidiary IES Holding. “This funding will be used to capitalize on this potential, boost the company’s growth worldwide and establish eVolution Networks products and technology as an industry standard.”
“Given that energy costs are the largest portion of operating expenses for telecom operators, a 35 percent reduction in energy usage with Smart Energy Solution will have a significant impact on profitability,” said Jonathan Pulitzer, Senior Director at GE Ventures. “GE Ventures is investing in eVolution Networks because of this potential for savings and the positive impact on global energy consumption.”
Worldwide figures show the telecommunications industry is responsible for 3 percent of the global energy consumption. This translates to an estimated $20 billion spent yearly by mobile network operators. Smart Energy Solution offers an answer by making the networks as efficient as possible through data analysis and advanced load management.