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How Copper Labs is Rewriting the Grid Modernization Playbook

Most startups avoid regulated industries like the plague. The sales cycles are longer, the customers are more conservative, and the barriers to entry are formidable. But in a recent episode of Category Visionaries, Dan Forman shared how Copper Labs is turning these very challenges into competitive advantages in the utility sector.

Finding the Gap in a Legacy Market

“We’ve come into a really old legacy market, solved into a tough utility customer, but solving a substantive problem of modernizing these grids in the most efficient way,” Dan explained. The problem was clear: utilities could only understand what was happening on their grid either “best case yesterday, and typically last month.”

But what makes this story particularly interesting isn’t just the problem they’re solving – it’s how they’re challenging decades of industry assumptions about the solution. While established vendors push for complete infrastructure replacement, Copper Labs discovered that existing meters were already broadcasting the necessary data. The secret? “Meters are already broadcasting usage data almost all the time. It’s just that in some cases, a truck will drive by to get it once a month,” Dan revealed.

The Unconventional Go-to-Market Approach

Rather than following the traditional enterprise sales playbook, Copper Labs developed a three-pronged strategy that turned industry constraints into advantages.

First, they invested heavily in regulatory affairs – an unusual move for a Series A startup. “For a startup of our size to have to invest so heavily in doing things like that is atypical. You wouldn’t do that in most markets, but in a regulated utility market, it’s table stakes,” Dan noted. This decision proved crucial when regulators began mandating utilities to implement demand management programs.

Second, they leveraged the non-competitive nature of the utility sector. “The interesting dynamic with utilities is they don’t compete with each other for the most part,” Dan explained. This insight led them to turn customer success stories into powerful sales tools, with National Grid becoming both a major customer and investor.

The Art of Being “Respectfully Provocative”

Perhaps most fascinating is their approach to challenging industry norms while maintaining credibility. Dan calls it being “respectfully provocative” – a delicate balance of challenging the status quo without alienating potential customers.

Their Valentine’s Day article “Falling Out of Love with AMI” became the highest-performing piece on a major industry site in two years. But it also taught them valuable lessons about balanced criticism. “How do you call BS on something that needs it without making the people that bought into their story seem like they’re part of the problem?” Dan reflected.

Breaking Free from Pilot Purgatory

To escape what Dan calls “pilot hell,” Copper Labs developed a systematic approach to scaling beyond initial deployments. The key? Strategic proof points that resonated with the industry’s risk-averse nature.

“A lot of what needs to take place in this market in particular is just staying around long enough because these utilities are risk averse. They don’t want to go and pick the flashy new startup that’s come around. They want to work with somebody that’s been around for a while,” Dan explained.

Their solution was to become ubiquitous in the industry. This year alone, they’ve had a presence at 26 conferences. The result? “The anecdote coming back has been Copper’s everywhere. We’re seeing you everywhere,” Dan shared.

Shifting the Industry Narrative

Rather than just selling technology, Copper Labs is working to fundamentally change how the industry thinks about grid modernization. “We need to shift the narrative in the market,” Dan emphasized. “We’ve all been marching in the same direction for a long time. It hasn’t worked. We’ve got new problems to solve.”

This narrative shift focuses on practical realities: the U.S. has more outages than any developed country, and about 900 billion gallons of water are wasted yearly through easily addressable residential leaks. By highlighting these problems, Copper Labs is helping utilities “ask new and better questions” about grid modernization.

For founders taking on regulated industries, Copper Labs’ journey offers valuable lessons: regulatory engagement isn’t just compliance – it’s a strategic advantage; industry constraints can become opportunities; and sometimes the best way to scale isn’t to fight the system’s conservatism, but to use it to your advantage.

As Dan summarized their mission: “I want Copper to be the company that helped prepare the utilities and this broader industry for that coming change.” It’s a reminder that sometimes the biggest opportunities lie in the markets others avoid.

Actionable
Takeaways

Innovate with a Purpose:

Focus on solving real-world problems that resonate deeply with users, as Dan did with his early AI company and now with Copper Labs' utility solutions.

Challenge the Status Quo:

Don't be afraid to disrupt traditional markets with innovative approaches. Copper Labs' "respectfully provocative" marketing strategy has been key in differentiating their solutions.

Engage Regulators Early:

In highly regulated industries, engaging with regulators can provide strategic advantages and help navigate complex market dynamics effectively.

Leverage Strategic Partnerships:

Building strong relationships with industry leaders and securing credible case studies can significantly boost market adoption and trust.

Persistence in Piloting:

Success in enterprise markets often requires enduring through multiple pilot stages and proving value before achieving large-scale adoption.

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