Fuse Energy co-founder Alan Chang says he and Charles chose energy because it is the one major problem that would not get solved without them, since fintech is largely solved.
Alan Chang says Fuse has cut its cost per kilowatt hour by roughly 15 percent since launch and argues Europe can be at least three times cheaper than it is now, blaming mostly inefficiency.
Alan Chang says hiring is Fuse's biggest bottleneck, and he regrets wasting money on agencies, so Fuse now hires whenever good people are found rather than against a headcount plan.
Ex-Revolut founders bet that lean energy companies can cut prices
Fuse Energy is a bet that energy is the one large problem that would not get solved without its founders. Energy companies would already earn more if they could, so Fuse attacks cost and margin, owning each cost it examines, to push prices well below Europe's levels. It pairs that with a lean, intense, performance-paid team, because finding great people limits its growth.
Takeaways
Energy was the problem only they would solve. Alan and Charles, both ex-Revolut, chose energy because fintech looked largely solved and mostly about customer acquisition. They researched for about a year, then self-funded roughly 1m on an MVP, about 50k on a licence and 7,500 on one wind turbine before raising.
Margin cuts drive lower prices in Europe. Fuse has cut its cost per kilowatt hour about 15 percent since launch, more than rivals. Europe's blended price is 20 to 30 cents against 88 in China, and Alan says it can be at least three times cheaper, blaming mostly inefficiency.
Fuse is profitable and wants to own costs. Fuse generates some power and buys the rest, does not own the cables, and is buying a grid operator. It is already profitable and plans debt against its EBITDA as asset financing. Alan says it has wanted to own every cost it examined.
Extreme intensity and quality define the culture. Fuse has just over 300 staff, mostly electricians and customer service. Alan took never settling from Revolut, sending back a designer's work that was not the simplest solution. He and Charles work seven days a week, which he says suits a generational company.
Hiring talent is the biggest bottleneck. Alan says agencies wasted money and referral incentives have not moved the needle. Fuse hires whenever it finds good people rather than to a headcount plan, because the best hires care about the work and the mission draws people who care about society.
Raise on valuation and governance, keep control. Alan wants to give away no control and criticises investors who hold majority control with strong opinions but little knowledge. He judges investors by whether they are reasonable in good times. He regrets taking an earlier term sheet when another investor would have bid higher.
Next product is a micro solar battery. The product targets renters and is designed to be attractive and waterproof, sold with or without upfront payment. Fuse targets roughly a three-year payback and about 500 euros a year in savings, with launch planned by year end.
How Fuse pays and measures people
Pay is performance based, and the top engineer can earn up to ten times the bottom one.
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On this episode 2
Show 1
Everyone sits on the same bonus grid regardless of seniority.
Some top performers received two raises in a year, or more than doubled their pay.
Engineers are measured on code quality and whether software solves the problem. Customer service is measured on tickets resolved and electricians on jobs done.
Fuse has no product teams, and designers and engineers collaborate. Alan expects humans to shift from writing code to reviewing it.
A dedicated AI team builds customer agents first, then internal ones such as a PR reviewer and an error-tracking agent.