EnergyX Secured $75M from Retail Investors Despite VC Backing from GM and Others

Almost every founder shares a common concern: securing enough cash to fulfill their startup’s potential. For many, this means attracting venture capitalists, but Teague Egan of EnergyX also engages retail investors.

EnergyX, which develops methods to extract lithium for electric vehicle batteries from underground briny water, has raised over $90 million from traditional investors like GM Ventures and Posco, and over $80 million from retail investors, including a recent $75 million offering.

Using SEC Regulation A, EnergyX can raise up to $75 million annually from unaccredited investors, requiring light SEC oversight and keeping the company private. While praised for allowing small investors to enter the private market, Regulation A has faced criticism for enabling risky investments, as seen with the solar EV startup Aptera, which has yet to deliver any vehicles despite raising over $120 million.

Egan considered going public via a SPAC but decided against it, opting instead for a $450 million PIPE deal with Global Emerging Markets. EnergyX plans to conduct a Series C round and aims to have its first commercial-scale lithium plants operational by 2027.

With Regulation A funding, EnergyX can operate for at least two more years while reducing reliance on VCs, allowing Egan to maintain greater control—he retains 47% of shares. “There’s a high percentage of startups where the CEO gets replaced by VCs,” he said. “That’s not where I want to be.”