Heron Power Closes $140 Million Series B Led by Andreessen Horowitz and Breakthrough Energy for a 40 GW US Solid-State Transformer Factory

Heron Power closed a $140 million Series B financing round on February 18, 2026, co-led by Andreessen Horowitz’s American Dynamism Fund and Breakthrough Energy Ventures. The raise pushes Heron Power’s total funding past $180 million and is the largest single financing round disclosed by any solid-state transformer (SST) startup. Existing investors Capricorn Investment Group, Energy Impact Partners, Valor Atreides AI Fund, and Gigascale Capital participated.

Heron Power was founded in 2025 by Drew Baglino, the former Tesla senior vice president who led the powertrain and energy groups for nearly two decades, including the engineering teams behind the Model S motor, the Model 3 motor, the Powerwall, the Megapack, and the broader Tesla Energy product line. Baglino left Tesla in April 2024. The Heron Power team includes additional senior Tesla powertrain engineers and the company is headquartered in Northern California.

The Series B is earmarked for a US manufacturing facility capable of producing 40 gigawatts of medium-voltage power-conversion equipment annually, with full-scale production targeted for the second half of 2027. The 40-gigawatt annual capacity figure is roughly an order of magnitude larger than any disclosed competitor production target. ABB, Hitachi Energy, and Eaton have each announced expansions of conventional transformer capacity but have not published comparable annual capacity numbers specifically for SST product lines.

Heron Power’s product line is branded Heron Link. The architecture converts medium-voltage utility input to the 800 volts DC required by NVIDIA’s reference AI Factory rack designs. The 800 VDC alignment positions Heron Link to compete directly with DG Matrix’s multi-port SST, Amperesand’s MV-SST, the SolarEdge-Infineon 2-5 megawatt platform, and Delta Electronics’ OCP Summit-debuted SST stack.

The competitive landscape for AI-data-center SSTs now includes four US startups (Heron Power, DG Matrix, Amperesand, Resilient Power via Eaton), three established Western transformer manufacturers (ABB, Hitachi Energy, Eaton), a major Japanese supplier (Delta Electronics), and a solar-inverter incumbent (SolarEdge). Drew Baglino’s Tesla background and the venture-capital signal from Andreessen Horowitz and Breakthrough Energy together suggest Heron Power is positioning itself as the volume-manufacturing winner. Whether the 40-gigawatt-per-year target is feasible by 2027 is the open question.

Why It Matters

For investors and utilities tracking the transformer bottleneck, a $140 million Series B led by a16z and Breakthrough Energy is the largest capital commitment any solid-state transformer startup has disclosed, and it hands a former Tesla powertrain lead the balance sheet to attempt a 40 GW US factory. The scale of the ambition is also the risk: 40 GW of annual SST capacity is far beyond anything shipping today, so the raise buys a factory thesis, not proof it will be filled.

Critical Perspective

Editorial correction: This post is part of MGRID’s Solid-State Transformer industry coverage. As of May 2026, that body of work systematically framed manufacturer announcements, funding rounds, and laboratory demonstrations as commercial deployments. The reality is that field-deployed commercial-class SST in revenue service globally is measured in single digits, and almost every product cited in this series is at “announced” or “funded” stage, not “operational.” Readers should treat the specific claims in this post against the standards documented in our [SST Industry Reality Check](/?p=9044) (the per-claim audit table maps marketing language to verifiable deployment status). The corrective article is the canonical reference for SST industry reality; this post remains published with its original framing so the editorial drift is traceable.

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