The round, led by CDP Venture Capital and Santander Alternative Investments (through Santander InnoEnergy Climate Fund), is joined by existing investors and unfolds concurrently with Tau Group’s expansion of production capacity at its new facility.
Turin, January 30, 2024. Tau Group, a leading technology company driving energy transition and decarbonization efforts, is establishing a new global standard in electric motor insulated wire. Tau has successfully closed a €11 million extension to its Series-B funding round. CDP Venture Capital and Santander Alternative Investments (through Santander InnoEnergy Climate Fund) took the lead in this round, with continued support from existing investors. This strategic funding aligns with Tau's concurrent expansion of production capacity in a new facility, geared towards fulfilling long-term supply agreements recently inked with automotive industry partners.
Tau Group stands at the forefront of the energy transition, specializing in the decarbonization of energy and electrification of transport. The company's patented technologies strike a balance between sustainable, resource-minimizing manufacturing and the robust performance required for effective electrification. Their focus on carbon-conscious protective coatings for high-performance copper, aluminum, and steel wires has positioned them as a key player in advancing smaller, greener, longer-lasting, and more powerful motors, transformers, and generators.
"This €11 million investment represents a pivotal moment for Tau Group and reinforces our commitment to leading the charge in sustainable technology" said Francesco Taiariol, CEO and Co-founder at Tau Group, "With the support of CDP Venture Capital and Santander InnoEnergy Climate Fund, we are poised to accelerate the adoption of e-mobility, bringing about positive change in the global transportation landscape."
CDP Venture Capital participates in the operation through its corporate venture capital fund Corporate Partner I, with the IndustryTech and the EnergyTech Sub funds. CDP Venture Capital invests jointly with the regional co-investment fund Piemonte Next, established and managed by CDP Venture Capital and underwritten by the Financial Institution of Piemonte Region Finpiemonte with the objective of maximizing investments in innovation for the territory.
“The revolutionary technology patented by Tau Group promises to significantly improve conductor performance, providing a competitive advantage in the industry and paving the way for more sustainable solutions in the world of electrical conduction” comments Enrico Filì, Head of IndustryTech sub-fund of Corporate Partners I fund, CDP Venture Capital, “The new funding will support Tau production capacity through a new plant and new production lines targeted at fulfilling the increasing demand from the international automotive sector. Tau represents an ideal target for CDP Venture Capital's cvc fund helping companies creating bridges between large industrial groups and the new disruptive solutions”.
Santander InnoEnergy Climate Fund’s mission is that of accelerating the energy transition across different sectors, including that of mobility. Such focus, together with the expertise and network of the corporations that are behind the fund (Santander and InnoEnergy), make it a perfect ally for Tau Group at this point in time.
As Tau Group continues to advance in sustainable magnet wire manufacturing, the additional funding sets the stage for an exciting chapter of growth and impact on a global scale. The funds raised in this extension will propel Tau Group's growth trajectory, enhancing its ability to achieve ambitious goals. This investment will play a pivotal role in scaling up production capacity, a crucial step in meeting the demands arising from Tau Group's recent long-term supply agreements within the automotive sector. The company remains dedicated to advancing sustainability, fostering innovation, and contributing to the broader goals of the energy transition.
About Tau Group
Tau is a technology company at the core of energy transition, decarbonization of energy and electrification of transport. Its patented technologies reconcile the necessity of sustainable, resource-minimizing manufacturing with the power, reliability and performance that electrification requires to enable smaller, greener, longer-lasting and more powerful motors, transformers and generators. Tau focuses on carbon-conscious protective coatings for high-performance and standard copper, aluminium and steel wires.
About CDP Venture Capital
CDP Venture Capital is an asset management company participated by CDP Equity (70%) and Invitalia (30%) with the goal of making venture capital a cornerstone of Italy's economic development and innovation, creating the conditions for the overall, sustainable growth of the entire innovation ecosystem. CDP Venture Capital manages 13 investment funds, amounting to over 3 billion euros in resources that support innovative enterprises at all stages of their life cycle, making both direct and indirect investments (funds of funds).
About Santander Alternative Investments SGIIC
Santander Alternative Investments SGIIC, part of Santander Asset Management, is an alternative investment fund manager with EUR 2 billion in committed capital through debt finance, trade finance, venture capital, real estate, infrastructure and FoF strategies. It has 60 employees, half of whom make up its investment teams. As part of Santander Wealth Management & Insurance (WM&I), Santander Asset Management is a global asset manager with firm roots in Europe and Latin America. Stretching back over 50 years and operating in 10 countries, it has EUR 215 billion in assets under management across all types of investment vehicles, from mutual funds and pension plans to institutional mandates and alternative investments. It has over 820 employees all over the globe, some 210 of whom are investment specialists with over 10 years’ experience in asset management. Its investment methods and local teams’ analysis capabilities, coupled with stringent risk control, give it a unique insight into market opportunities and its clients’ needs. Figures as at December 2023.