Base Power Company: Chapter 2

Introduction

• Base Power Company is highlighted as a potentially generational company in the power market.
• The company has executed strongly over the past year, raising $200 million and building a talented team.
• The focus is on vertical integration and tackling significant challenges in the power sector.

Initial Mistake

• The author regrets not investing in Base Power Company during an early $60 million round.
• Base Power Company has demonstrated strong execution and growing ambition.
• The company has installed over 1,000 batteries in Texas, partnered with homebuilder Lennar, and is building a strong team.

The Electric Era

• A shift to electric is occurring: cars, robots, and more are going electric.
• The current electrical grid is struggling to keep up with demand.
• Base Power's solution involves using batteries to optimize electricity use and support the grid.

Strategic Importance of Batteries

• Batteries are seen as crucial in the ongoing energy transition in America.
• They help balance electricity supply and demand, benefiting consumers and the grid.
• Base is positioned at the base layer, much like an operating system for electricity.

Base Power Company’s Strategy

• The strategy involves not manufacturing battery cells but assembling battery packs.
• Aims to build a vertically integrated power company around batteries.
• Integrating manufacturing, finance, power trading, customer acquisition, consumer software, regulatory compliance, and installation.

Challenges and Opportunities

• Base has proven its ability to execute by scaling battery installs and partnerships.
• Facing challenges but leveraging them for growth and strategic positioning.
• Backed by influential investors and a capable board, including Antonio Gracias and Lee Fixel.

The Company’s Culture

• The company started in a house, 'The House,' symbolizing its early, scrappy beginnings.
• Emphasizes camaraderie, fighting spirit, and action-oriented culture.
• The culture of hard work and continuous improvement is a core value.

Marketing and Growth Strategy

• Initially focused on direct-to-consumer sales, now expanding to homebuilders and utilities.
• Growth strategy involves direct sales, channel partnerships, and utility partnerships.
• Successful marketing pivot to emphasize reliability and community trust.

The Role of Software

• Software is crucial for real-time monitoring and electricity trading.
• Base’s software provides a competitive edge in managing and optimizing grid operations.

The Future

• Base is testing its Gen 2 battery, aiming for faster installations and improved economics with Gen 3.
• The company is exploring partnerships with regulated utilities.
• Strong emphasis on continuing innovation and adaptation to changing market needs.

Conclusion

• Base Power Company is on a path to potentially becoming a generational company.
• It is strategically positioned to capture significant market value by modernizing the American electricity grid.
• The company is actively seeking talent and investment to further its mission of transforming the energy landscape.