If you own a home, Sealed sells you a heat pump. A Manhattan-based startup that helps homeowners replace their oil-and-gas-guzzling heating systems with an unusual funding model has raised an additional $29.5 million in a new deal led by a real estate investor. fifth wall. Other investors, including the Robert Downey Jr. FootPrint Coalition and CityRock, have also contributed.
Heat pumps work by moving heat in or out of your home, depending on whether you’re trying to cool or warm. They are more efficient than their fossil fuel counterparts, but they are more expensive to install, and this is where the Sealed model comes into play. upfront installation and insulation costs, homeowners are billed monthly based on energy savings. It means Sealed only gets paid if it manages to cut energy losses.
The startup’s big bet is on its machine learning algorithms, which “really accurately predict a home’s future energy use,” CEO Lauren Saltz said in a phone call with TechCrunch. Sealed’s predictions are not perfect; sometimes the startup loses contract money, sometimes it makes a profit, “but we can balance that out by owning a portfolio of homes,” Saltz said.
To perform the actual installation, Sealed relies on existing heat pump equipment and connects its customers to a network of contractors who reduce energy waste through upgrades such as air-sealing, insulation, and LED lights in addition to heat pumps. All of this is “very proven and reliable technology that has been around for decades,” Saltz added.
Till theoretical solutions to the climate crisis, such as large-scale carbon sequestration from the sky, seems to be attracting attention, the technology needed to solve the problem of climate change already exists, Intergovernmental Panel on Climate Change concluded in his April report. At the utility level, this means replacing fossil fuel power plants with renewable energy sources. However, this will not rid homes of fossil fuels unless individual homeowners also phase out oil and gas heating.
Nine-year-old Sealed aims to accelerate this transition in the US by using its new funds to expand beyond the Northeast for the first time, starting in Chicago. The firm also aims to double its team size to 200 by the end of the year. The $29.5 million deal raises the pre-existing Series B Sealed by $16 billion to $45.5 million, and it’s “definitely a big, big round,” according to Saltz. The CEO added that the startup now has a nine-figure valuation, declining to say more.
Credit: techcrunch.com /