Recurrent, a platform providing shoppers and car dealerships with information about used electric vehicle batteries, raised $16 million in a Series A round.
Launched in 2020, Seattle-based Recurrent has established itself as a leader in used EV battery analytics and provides scores for battery health on consumer sites including Edmunds.com and Cars.com.
Just as the mileage on a car and condition of an engine are important metrics for buying petrol-powered used cars and trucks, the state of a battery is essential information when making an offer on a used EV. The majority of the vehicle’s value depends on its battery, and Recurrent wants to be the go-to source for that data.
“The auto industry needs a common currency for understanding and comparing used EV batteries, like the odometer was for used combustion vehicles,” said Scott Case, co-founder and CEO of Recurrent.
The startup wants to be that “common currency.” It is providing battery scores for one-third of used EV sales in the U.S., and expects later this year to increase that fraction to cover most used EV transactions.
EV battery health is impacted by how depleted it was before recharging, by using fast chargers, and by storing and charging a vehicle in hot temperatures, Recurrent experts say.
The company is gathering data from EV drivers around the U.S. to understand how the batteries perform over time and creates reports for individual cars based on those analytics.
Some 25,000 EV drivers have signed up with Recurrent to track their battery data, which comes to about 1 million miles driven daily. The startup’s research spans 65 makes and models of EVs and plug-in hybrids.
Participating drivers receive reports about their EVs that could help with resale, and they get tips to improve their EV battery’s range and performance.
“Nobody grew up learning how to take care of an EV from their parents or grandparents like we all did for combustion engine cars,” Case said. “So for people that are transitioning and getting their first EV, there’s some learning curve and we’re helping new owners.”
Recurrent’s products are free to consumers. Its paying customers include more than 100 dealerships selling used EVs, as well as online sales sites and vehicle auction houses.
Case expects growing demand for Recurrent’s battery information.
Beginning this year, Biden administration tax credits for new EVs are limited according to where their batteries and battery materials are made and other restrictions that favor U.S. manufacturing. But those limitations don't apply to leased EVs, potentially incentivizing that route for consumers.
The important impact for Recurrent is the fact that leased vehicles move more quickly to the used EV market than cars that are purchased by owners, Case said, which should accelerate the availability of used EVs.
There are also new point-of-sale tax breaks available for used EV buyers who go through auto dealers, with certain restrictions. Recurrent has created a tool to help shoppers determine if a used EV they're considering is eligible for this deal.
Case co-founded Recurrent with Chief Technology Officer Kyle Rippey. Case was previously chief operating officer at EnergySavvy, a company that supports clean energy use. Rippey has worked at startups including Rover, Estately and Avvo.
The company has about 20 employees and is a spinout of Seattle’s Pioneer Square Labs.
ArcTern Ventures, a climate-focused venture capital firm based in Toronto, led the new funding round. Other investors included Automotive Ventures, Goodyear Ventures, Wireframe Ventures, Pioneer Square Labs and others.
“ArcTern conducted extensive primary research to develop the high conviction that Reccurent’s data-driven solution is not only the right approach, but is in a standalone market-leading position," said Ian Pinnington, an ArcTern partner, in a statement.
The new funding brings total funding for Recurrent to $19 million.
Editor's note: Story was updated to reflect the company’s total funding to date.
