Heron Power

Heron Power

Develops solid-state transformers for grid modernization

Overview

Heron Power modernizes the electrical grid with solid-state transformer technology. Its flagship Heron Link is a modular, megawatt-scale power converter that connects directly to medium voltage, replacing traditional transformers and using wide-bandgap semiconductors for high density and fast voltage/frequency regulation. The system integrates software controls to manage power flows across renewables, storage, and data centers, improving grid stability and reducing equipment footprint. Its goal is to accelerate the all-electric future by delivering scalable, robust grid infrastructure with domestic US manufacturing and pilots starting in 2026.

Significant Headcount Growth

About Heron Power

Simplify's Rating
Why Heron Power is rated
C+
Rated B on Competitive Edge
Rated C on Growth Potential
Rated C on Differentiation

Industries

Hardware

Industrial & Manufacturing

Energy

Enterprise Software

Company Size

51-200

Company Stage

Series B

Total Funding

$178M

Headquarters

Scotts Valley, California

Founded

2024

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Simplify's Take

What believers are saying

  • August 13, 2026 Morgan Hill factory supports 600 jobs and late-2027 mass production.
  • February 18, 2026 Heron raised $140 million from a16z, Breakthrough, Capricorn, and EIP.
  • Customer interest exceeds 40 gigawatts, validating demand for grid and data center capacity.

What critics are saying

  • Heron ships no mass product before late 2027, exposing it to execution slippage.
  • The Morgan Hill credit is milestone-based; hiring delays postpone the $26.4 million benefit.
  • DG Matrix and Amperesand race Heron to first commercial solid-state transformer deployments.

What makes Heron Power unique

  • Drew Baglino's Tesla powertrain team brings 80+ gigawatts of grid electronics deployment experience.
  • Heron Link replaces transformer-plus-inverter skids with one medium-voltage, software-controlled 5MW unit.
  • June 2026 LG Energy Solution Vertech partnership targets integrated, U.S.-made storage systems.

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Funding

Total Funding

$178M

Above

Industry Average

Funded Over

2 Rounds

Notable Investors:
Series B funding is typically for startups that have proven their business model and need more funding to expand rapidly—often by entering new markets or adding more products. Investors are usually venture capital firms that specialize in later-stage investments.
Series B Funding Comparison
Above Average

Industry standards

$35M
$45M
Linktree
$65M
Substack
$100M
ClickUp
$140M
Heron Power

Benefits

Company Equity

Growth & Insights and Company News

Headcount

6 month growth

-4%

1 year growth

1%

2 year growth

11%
Morgan Hill Times
Aug 27th, 2026
Editorial: Morgan Hill's economic development plans are coming to fruition.

Editorial: Morgan Hill's economic development plans are coming to fruition. August 27, 2026 Morgan Hill has spent years talking about economic development. Now, the results are becoming increasingly difficult to miss. The city is emerging as a significant hub for advanced manufacturing, clean technology and next-generation engineering. Major investments by Archer Aviation, Mir Mosaic and Heron Power are bringing hundreds of jobs, millions of dollars in capital investment and cutting-edge manufacturing to a community that has long sought to strengthen its economic base. This is good news - not just for the companies moving into Morgan Hill, but for the entire community. During the past four years, more than 1.5 million square feet of Class A industrial space has been built. That development has helped address a problem that once constrained Morgan Hill's ability to grow: industrial vacancy was only about 3%, leaving little room for existing businesses to expand. As of today, the industrial vacancy rate is at 6.5%, down from a high of 17% before the recent acquisitions. Much of that new industrial capacity was developed by Trammell Crow Company, including the 410,000-square-foot Butterfield 5 Tech Park and the 501,000-square-foot Cochrane Technology Center. Mir Mosaic recently purchased a 90,000-square-foot building at Butterfield 5, expanding its Morgan Hill footprint by 25,000 square feet and adding 15 jobs to its existing workforce. Then came Heron Power's announcement of a more than $100 million investment to create Heron Factory One. The company plans to transform a 286,000-square-foot former warehouse and distribution facility into a high-tech manufacturing plant. The project is expected to create 600 jobs. And Archer Aviation is expanding its Morgan Hill presence by leasing the entire 500,000-square-foot Cochrane Technology Center. The facility will serve as a West Coast hub for tooling, component manufacturing and aircraft production, with an estimated 300 new jobs. In just the past 60 days, nearly 900,000 square feet of Morgan Hill industrial space has been leased or sold. But the real story isn't measured in square feet. It is measured in people. When the city adopted the economic blueprint in 2017, 28% of residents worked in Morgan Hill. Today it's 36.5 percent. Bringing nearly 1,000 new jobs in advanced manufacturing, engineering and operations closer to home could give residents more opportunities to build careers without spending hours commuting. And the benefits won't stop with the employees who work in these facilities. New workers will buy lunch at local restaurants, shop at local businesses, rent or purchase homes and use local services. Growing companies generate additional economic activity, strengthen the commercial tax base and create opportunities for other businesses that serve them. That is how economic development is supposed to work. Morgan Hill should celebrate these investments while also recognizing that growth brings responsibilities. The city must continue investing in infrastructure, transportation, housing and public services so that economic success translates into a higher quality of life for all residents. The temptation with major corporate announcements is to focus on the impressive numbers - $100 million investment, 600 jobs, 500,000 square feet. But the bigger achievement is what those numbers represent. Morgan Hill is no longer simply a place where companies can locate because there is available land. It is becoming a place where innovative companies want to build, manufacture and grow. That didn't happen overnight. It is the result of years of planning, investment and a community vision focused on creating a stronger local economy. The new businesses are important additions to that story. So are the many existing manufacturers and businesses that have chosen to remain in Morgan Hill and expand here. The challenge now is to build on that momentum. Morgan Hill has an opportunity to create something rare in the region: a community where people can live, work and build careers without having to leave town every morning. That is a future worth investing in.

Transformer Technology
Aug 14th, 2026
Heron Power to build $100M factory in Morgan Hill.

Heron Power to build $100M factory in Morgan Hill. 14 Aug 2026 Heron Power has selected Morgan Hill, California, for its first large-scale manufacturing facility, where it plans to produce its Heron Link medium-voltage power conversion system. The company will convert a former 286,000-square-foot distribution warehouse into a manufacturing facility. Heron expects to invest more than $100 million in the site, create more than 600 jobs, and begin mass production in late 2027. The factory is designed to produce up to 10,000 Heron Links per year, representing more than 40 GW of annual capacity. The 5 MW systems are intended for large-scale energy and data center projects. Site preparation is set to begin immediately. The project is supported in part by a $26.4 million California Competes tax credit. Heron Power CEO and founder Drew Baglino said the facility will allow the company to manufacture its power electronics technology at scale in the United States. The company said Morgan Hill was selected following an evaluation of manufacturing locations in several states. The site is close to Heron's engineering headquarters and the Bay Area's engineering and manufacturing workforce.

The Registry
Aug 13th, 2026
Heron Power leases 286,000 SQFT in morgan hill for first US factory, pledging $100MM and 600 jobs.

Heron Power leases 286,000 SQFT in morgan hill for first US factory, pledging $100MM and 600 jobs. American power-electronics startup Heron Power has committed to a 286,000-square-foot building at 85 Partner content. 2026 northern california CRE rising stars. Signup for news and special announcements!

PR Newswire
Aug 13th, 2026
Heron Power to invest $100M in California factory producing 40GW of power electronics annually

Heron Power will invest over $100 million to convert a 286,000-square-foot warehouse in Morgan Hill, California, into an advanced manufacturing facility. The factory will produce up to 10,000 Heron Links annually — 5-megawatt power conversion systems for large-scale energy and datacentre projects. The facility is expected to create over 600 jobs in manufacturing, engineering, and operations. Mass production is slated to begin in late 2027. California is supporting the project with a $26.4 million CalCompetes tax credit. Heron Link consolidates multiple pieces of grid equipment into a compact, software-controlled unit designed for higher efficiency and faster deployment. The company aims to address growing demand from AI datacentres and electric vehicles whilst reducing reliance on imported grid components.

New Equipment Digest
Jun 3rd, 2026
Heron Power, LG Energy team up on grid storage.

Heron Power, LG Energy team up on grid storage. Heron Power and LG Energy Solution Vertech integrate solid-state transformer tech with U.S.-made battery storage for utility-scale projects. June 3, 2026 Heron Power and LG Energy Solution Vertech have announced a design and engineering collaboration to integrate Heron's solid-state transformer-based Heron Link platform with LG Energy Solution Vertech's U.S.-manufactured battery energy storage systems into a validated DC-to-AC platform targeting utility-scale storage and high-load-growth applications including data centers and manufacturing facilities. Heron Link replaces conventional inverter-plus-transformer power conversion skids with a modular solid-state transformer architecture. The integrated system reduces DC block project footprint by 30%, improves energy density to 385 MWh per acre, and delivers 2.4% higher round-trip efficiency. Combined with lower EPC costs from streamlined deployment, project economics improve by up to 6% NPV. "By engineering a holistic solution together, we are unlocking higher power density, greater efficiency, and faster deployment for developers building the grid of the future," said Drew Baglino, CEO of Heron Power. "Our clients can choose to elevate the efficiency of their projects while leveraging advanced, American-made solutions," said Jaehong Park, CEO and president of LG Energy Solution Vertech. The companies are targeting a pilot deployment later this year, with broader commercial availability to follow. Contributors: This piece was created with the help of generative AI tools and edited by its content team for clarity and accuracy. Great question: A manufacturing podcast. Manufacturers from chemical producers to automakers to machine shops gain for critical insights into the technologies, economic conditions and best practices that can influence how to best run facilities to reach operational excellence. Tune in Now!

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