Berkeley, CA – PeraWatt Energy Inc. (PeraWatt), a California-based deeptech startup, has been awarded a $100,000 Innovation Grant through the California Office of the Small Business Advocate’s (CalOSBA) Accelerate California program. The grant will support the continued development and commercialization of PeraWatt’s breakthrough soft magnetic materials (SMMs), which have the potential to dramatically improve the efficiency of power conversion in AI data centers, electric vehicles, renewable energy systems, and consumer electronics.
PeraWatt was one of 37 innovative companies selected from across the state to receive funding as part of a $2 million investment announced by Governor Gavin Newsom. The grant recipients span 17 California counties and represent a wide range of industries, from clean energy and advanced manufacturing to health technology and artificial intelligence. PeraWatt received its award through Humanmade, a nonprofit innovation hub and hardware accelerator based in San Francisco’s Design District.
About PeraWatt
PeraWatt was founded to address a rapidly growing problem: the exponential rise in energy demand driven by AI and electrification. Data centers already consume vast amounts of power, and up to 40% of that demand goes to cooling systems needed to manage excess heat created by inefficient hardware. A major source of that inefficiency lies in outdated magnetic materials used in power electronics, components that have seen little meaningful innovation in decades.
PeraWatt’s breakthrough magnetic materials offer a step-change in performance compared to incumbents, enabling significantly smaller, cooler, and more efficient power systems. By unlocking new levels of performance, PeraWatt aims to help industries meet growing demands for energy, electrification, and the AI revolution.
Accelerate California Innovation Grant
The Innovation Grant will fund the development needed to make make the technology into a commercial product, enabling PeraWatt to generate customer-ready solutions and paid pilot engagements. This award adds to the company’s growing base of non-dilutive funding, which includes a $305,000 NSF STTR grant awarded in 2025.
About Accelerate California
Accelerate California is the nation’s first statewide program directly investing in innovation-based businesses owned by diverse founders. Operated by the California Office of the Small Business Advocate (CalOSBA), the program supports entrepreneurs through a network of 13 regional Inclusive Innovation Hubs that provide mentorship, technical guidance, networking opportunities, and connections to funding sources. Since its launch, Accelerate California has supported more than 29,000 startups and small businesses. Participating companies have helped create over 3,200 jobs, filed 128 patents, and secured more than $379 million in equity funding. Innovation Grant Awards range from $25,000 to $100,000 per company. For more information, visit calosba.ca.gov/funding-grants-incentives/accelerate-california.