Barcelona Startup Tether Raises €1.3M to Tackle EU Grid Instability

Barcelona-based clean energy startup Tether has secured €1.3M in pre-seed funding to advance its AI-driven electric vehicle (EV) grid integration technology. The round was led by Draper B1 and K Fund, with participation from Southern European venture funds including Enzo Ventures, Inclimo Climate Tech Fund, Zero4Climate, and COREangels Climate.

Founded in 2023, Tether uses AI to optimize EV charging schedules, turning private vehicles into distributed battery networks that support grid stability. The technology aims to reduce CO2 emissions by up to 7,300 tonnes per MW over a vehicle’s lifetime while generating revenue for automakers and charge point operators.

Without intervention, grid instability could cost EU economies €135B annually by 2050 due to rising energy costs and emergency measures. The new funding should help Tether expand its team and deploy its solution in Nordic markets, Germany, and Belgium. The company has already initiated pilot programs with major automakers, including Audi and Zeekr.