We Would Invest: HVDC
Today, I’m excited to launch a new research series we’re calling We Would Invest. Periodically, we plan to spotlight an overlooked frontier or specific technology that our firm, Space VC, would fund tomorrow if the right founder knocked.
Our first feature: HVDC — The Invisible Bottleneck of the Energy Transition
The U.S. electric grid is undergoing the largest transformation in a century. Surging demand from data centers, EVs and renewable energy is colliding with aging infrastructure and a severe transmission bottleneck.
At the heart of this crisis is HVDC (High-Voltage Direct Current) which enables long-distance, high-capacity power transfer but remains constrained by outdated materials, limited manufacturing, and long lead times. Without innovation here, we believe the energy transition stalls, and along with it, technology progress.
In fact, Bloomberg recently highlighted the HVDC challenge in their report, “There Aren’t Enough Cables to Meet Growing Electricity Demand.”
The next wave of HVDC innovation could be at the intersection of advanced materials, novel thermal management & cooling systems, and automated maintenance. To create cheaper and better HVDC systems, especially for large-scale transmission, the most likely & highest-impact technical innovations will span the following:
⚙️ Advanced Conductors — aluminum composites, graphene-infused or carbon nanotube conductors, and superconducting wires
❄️ Thermal Management — Liquid cooling systems adopted from GPU cooling, self-regulating conductor jackets, and thermal insulation wraps
🏭 Manufacturing Automation — Robotic cable winding & layer stacking, computer vision QA, or even modular fabrication plants
⚡Power Electronics & Converters — Silicon Carbide (SiC) or Gallium Nitride (GaN) power semiconductors, AI-enabled converter control systems
The U.S. grid will need hundreds of GWs of new transmission capacity over the next decade. Globally, demand for power cabling is expected to rise ~60% by 2035. We’re looking at an immediate $10B–30B domestic market for advanced HVDC technologies.
Yes, HVDC solutions exist. But we face a severe manufacturing bottleneck, 2–5+ year lead times, and minimal domestic production. There’s an urgent need for a new entrant with speed, vision, and execution to emerge.
We believe a founding team that understands the complexities of the HVDC market, sees the opportunity to streamline installation and permitting, and prioritizes near-term commercialization could build a generational infrastructure company.
At Space VC, we would invest.
