Estonia’s thriving tech ecosystem has reached a new milestone, with PowerUP Energy Technologies securing €10 million in Series A funding. As a serial entrepreneur myself, I find this story particularly compelling, not just because it signals the rise of hydrogen-powered innovation, but because it showcases how dual-use technologies can reshape industries at the intersection of clean energy and defense.
Let’s break down the key elements of PowerUP’s success and, more importantly, what entrepreneurs like you can learn from it.
PowerUP’s Journey to a €10 Million Milestone
PowerUP Energy Technologies, based in Tallinn, Estonia, isn’t your standard cleantech startup. This company was born out of high-stakes innovation, with its hydrogen fuel cell tech originally designed for European Space Agency missions. Its field-tested products are battle-hardened, literally, having proven their mettle in extreme conditions such as conflict zones, including the frontlines of Ukraine.
The €10 million secured in this funding round was led by dual-use-centric venture firms Mercaton and ScaleWolf, alongside SmartCap Green Fund, Estonia’s EU-backed investment powerhouse. Their hydrogen fuel cell generators stand out as modular, emission-free, and silent, offering reliability for use cases spanning remote telecom sites, military deployments, and critical civilian infrastructure.
What’s special here? This isn’t just about growing revenue; it’s about scaling an already-successful product that has proven to work both in outer space and in the volatile conditions of modern-day defense operations. For most startups, claiming such a diverse validation spectrum would be a dream. PowerUP has done it.
6 Lessons from PowerUP for Entrepreneurs and Startups
1. Dual-Use Technology is a Goldmine
PowerUP demonstrates that leveraging technology across multiple fields not only expands your market but also legitimizes your innovation. Their hydrogen solutions have been validated in both space missions and military applications. As an entrepreneur, think about other domains where your product might solve urgent problems. One product, multiple pain points addressed, that’s scaling with purpose.
→ Pro tip: Industries like defense, healthcare, and education are ripe for dual-use technology innovation. Dive into these markets to spot unmet needs.
2. Don’t Underestimate Initial R&D Roots
One of the most significant insights about PowerUP is their roots in rigorous R&D for space exploration with the European Space Agency. Did they pivot slightly for market needs? Yes. But the DNA of their product is uncompromising engineering and reliability.
As an entrepreneur, never cut corners during the product development stage. Investors, and customers, are willing to pay for proven reliability over flashy features.
→ Actionable advice: Invest in robust validation studies for your product, and utilize their results as your sales pitch. Nothing speaks louder than solid proof!
3. Green Is the New Gold
Hydrogen fuel isn’t just a defense darling, it’s also part of the growing green transition across industries. Globally, governments, corporations, and VCs are pouring money into clean energy solutions. SmartCap Green Fund’s investment in PowerUP signals growing financing opportunities in this sector.
As someone who’s worked with STEM startups, I encourage entrepreneurs to capitalize on sustainability trends. Governments in Europe and beyond are hungry for climate-resilient, scalable solutions.
→ Explore funding options: Check regional funds or programs like EU Horizon or SmartCap Green Fund targeting cleantech initiatives.
4. Field-Test Your Concept, No Excuses
Whether you’re developing tech for defense or retail, PowerUP’s success teaches us that real-world testing matters. Initially, they could’ve confined themselves to “lab success,” but proving their resilience in battlefield conditions elevated their reputation tenfold.
→ How to replicate this: Run pilot programs or small-scale deployments to test your product in diverse, real-life environments. Feedback is gold, you’ll refine your product and earn credibility.
5. Invest in Strategic Partnerships
PowerUP didn’t just raise €10 million. They brought on partners like Mercaton and ScaleWolf, investors with deep expertise in dual-use technologies. These aren't just firms with cash; they open doors to defense and international markets.
→ What you can learn: Select investors strategically, they should bring more than money to the table. Whether it's industry contacts, market entry expertise, or specialized knowledge, the right partnerships will accelerate your startup's growth.
6. Success Isn’t About Products, it’s About Scaling
PowerUP’s intention to use the funding for expanding production capabilities and entering North American and Central European markets is a move every entrepreneur should emulate. Scaling isn’t just selling more; it’s about setting up the infrastructure to sustain larger operations.
→ Practical guide to scaling: Start small but scalable. Outsource where necessary, focus on productivity tools, and expand regionally based on calculated market dynamics.
Most Common Mistakes Startups Make When Scaling
Even proven startups can slip. Based on my experience incubating and coaching startups, here are the top mistakes to avoid:
- Premature Scaling: Growing before market demand solidifies often drains resources. First, validate your product in the target market.
- Ignoring Cultural Contexts in New Markets: Localization is key when expanding abroad, be it in language, regulations, or marketing approach.
- Rushing Without Processes: Scaling highlights inefficiencies. Before expanding, invest time in refining backend processes, supply chains, and customer support.
- Overlooking Brand Alignment: While focusing on growth, ensure that your messaging, values, and customer experience remain consistent across regions.
- Not Diversifying Customer Segments Early: Putting all your eggs in one basket, whether it’s defense budgets or limited industries, is a recipe for trouble.
Insights: Why PowerUP Represents the Future of Entrepreneurship
What stands out about PowerUP is not just the use of cutting-edge fuel-cell tech. It’s the mindset behind their expansion:
- Diversified Markets: They’ve ensured success in defense, industrial, and off-grid commercial spaces.
- Value-Led Innovation: Their products don’t just work; they excel in solving critical energy challenges while being environmental game-changers.
- Market Readiness: They don’t just engineer ideas, they launch, test, and readily adapt for real-world practicality.
In a recent discussion on gamepreneurship (my methodology for imbuing game-based innovation into startups), I always highlight that the future belongs to flexible, purposeful businesses.
Conclusion: Your Takeaways from PowerUP’s Victory
Are you working on a startup and wondering what this means for you? Simple: ingenuity matters, but its successful application in real-world scenarios matters more.
Draw inspiration from PowerUP’s way of combining engineering rigor with market adaptability, their dual-use innovation strategy, and their clear understanding of scaling pathways. Whether you’re in cleantech, AI, or consumer products, remember that validation, partnerships, and strategic scaling will always trump sheer idea potential.
If you’re ready to build your own impact-focused startup, check out resources like Estonia’s SmartCap Green Fund or EU’s NextGenerationEU for sustainability grants. And always stay open to pivoting your tech for broader markets, you never know, your product might just end up solving problems no one else could.
FAQ
1. What is PowerUP Energy Technologies, and what makes it unique?
PowerUP Energy Technologies is a Tallinn-based startup creating hydrogen fuel cell generators that are modular, emission-free, silent, and designed for both defense and civilian use. They were originally engineered for space missions and have been field-tested in conflict zones like Ukraine. Explore PowerUP Energy Technologies
2. How much funding did PowerUP secure and for what purpose?
PowerUP Energy Technologies raised €10 million in Series A funding to expand manufacturing capabilities, accelerate development, and reach new markets like Central Europe and North America. Learn more about the €10 million funding round
3. What industries does PowerUP serve with its technology?
PowerUP’s hydrogen generators are used in defense (frontline operations), industrial applications, off-grid civilian infrastructure, and remote telecom sites. Their dual-use versatility spans military and commercial markets. Discover PowerUP’s use cases
4. Who are the lead investors in PowerUP’s Series A funding?
The funding round was co-led by Mercaton and ScaleWolf, both venture firms specializing in dual-use technologies, with additional support from Estonia’s SmartCap Green Fund, backed by the EU’s NextGenerationEU program. Learn more about SmartCap Green Fund
5. What benefits does PowerUP’s dual-use technology offer?
Dual-use technology like PowerUP’s hydrogen generators expands market scope by addressing both civilian and defense needs. This ensures broader validation and higher reliability standards, validated in settings like space missions and battlefields. Explore PowerUP’s dual-use innovation
6. How does PowerUP plan to utilize the new funding?
PowerUP aims to scale production, expand into international markets (Europe and North America), and develop higher-density energy systems for diverse applications while establishing regional support hubs. Learn about PowerUP’s scaling strategy
7. What role did Estonia’s clean energy initiatives play in this success?
Estonia’s role as a hub for cleantech and defense innovation is amplified by funding programs like the SmartCap Green Fund, which focus on sustainable and dual-use technologies. Check out Estonia’s cleantech initiatives
8. How has PowerUP’s technology been validated?
PowerUP’s hydrogen generators have been rigorously tested, initially for European Space Agency missions and later in conflict zones like Ukraine, showcasing their reliability in extreme environments. Explore PowerUP’s field-tested technology
9. What strategic advantage does Mercaton and ScaleWolf bring to PowerUP?
Mercaton and ScaleWolf are experts in dual-use innovation, enabling PowerUP to tap into defense-sector knowledge and commercial opportunities to scale effectively. Discover Mercaton and ScaleWolf
10. What trends support PowerUP’s growth in the clean energy sector?
The green transition, demand for emission-free technologies, and increased use of dual-use power solutions in sectors like defense and telecom are driving PowerUP’s momentum. Learn more about green investment trends
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.