Evaluating only Patchwork Energy’s profile at its peak — without knowing the outcome — the model ranked Regulation as the #1 likely cause. That’s exactly how it died.
Key Events Timeline
FOUNDING
Patchwork Energy founded in UK to build Ofgem-compliant peer-to-peer energy trading for community renewables.
FUNDING
Raises £3.2M; onboards 12 community energy projects but transaction volumes remain far below break-even threshold.
REGULATORY ACTION
Ofgem requires all P2P energy transactions to route through a licensed supplier, adding cost that breaks unit economics.
SHUTDOWN
Patchwork Energy enters administration in November 2020 with fewer than 20 staff; unable to reach sustainable transaction volume.
Full Analysis
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Documented cause
Patchwork Energy, a UK-based peer-to-peer energy trading marketplace targeting community renewable projects, raised £3.2M and built a platform compliant with Ofgem licensing requirements. The company struggled with regulatory complexity: each P2P transaction required a licensed supplier intermediary, making unit economics unworkable at small scale. Despite 12 community energy projects onboarded, transaction volumes remained too low. The company entered administration in November 2020 with fewer than 20 staff, unable to reach sustainable revenue.
Lesson
“P2P energy trading requires regulatory sandbox access or licensed supplier partnerships before launch.”
Failure anatomy
Collapse type
Bankruptcy
📉 MEDIUM
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