COLUMBUS, Ohio--(BUSINESS WIRE)--Synota, a Bitcoin technology company providing transactional flexibility and instant settlements to the energy industry, today announced it has raised a $3 million seed round led by ego death capital. The investment will be used to rapidly commercialize the company’s settlement platform for power generators, distributors and energy consumers worldwide.
Synota was founded in 2022 with a mission to promote global energy abundance by integrating Bitcoin’s Lightning Network and energy.
“The freedom to transact is essential to solve the global challenges of energy equity and access. Anything less condemns future generations to energy poverty – this is why we are passionate about how Synota disrupts energy finance,” said Austin Mitchell, Co-founder and CEO of Synota.
Today, a significant disconnect exists between when and how energy flows compared to when and how the energy payments are settled. The disconnect results in cash lag, credit risk and increased energy costs.
Synota resolves these issues by integrating existing hardware and software in the energy industry with Bitcoin’s Lightning Network, an open-source, peer-to-peer payment technology. Synota’s platform offers revolutionary transaction capability and instant settlements. Synchronizing the flow of energy with payments removes the financial friction currently inhibiting energy investment and innovation.
“Using Synota, back-office constraints will no longer limit a company’s ability to settle complex energy transactions,” said Lisa Scott, Co-founder and Chief Administrative Officer.
Enabling energy companies to settle transactions more frequently, based on real-time usage data, reduces counterparty risk and the need for collateral. Combined with the reduction in overhead costs from automating legacy and piecemeal settlement processes, Synota lowers the cost of energy.
Synota will launch a pay-as-you-go service for Bitcoin miners, hosts, and their energy suppliers early next year. Flexible transaction capabilities include dynamic pricing and simultaneous multi-party settlement. The software will be available for the broader energy industry starting in 2024.
Trammell Venture Partners, Rev1 Ventures, Hivemind VC, Bitcoiner Ventures and Recursive Capital also participated in the fundraising round, alongside other strategic partners.
About Synota
Synota was founded in 2022 by Austin Mitchell and Lisa Scott to bring about an abundant energy future. Synota’s software development is led by Max Dignan and the company is further supported by an experienced group of advisors. The team brings together a combined 125 years of experience in the energy industry along with Lightning Network expertise.
Editor’s note: Interviews are available upon request.
