Aeroseal Secures $67 Million in Series B Funding
The company has reduced over half a million tons of CO2 emissions in the atmosphere
Miamisburg, OH — July 20, 2023 — Aeroseal, a pioneering climate-tech startup that offers a patented solution to the pervasive issue of energy leaks in buildings, has announced the successful completion of a $67 million Series B funding round. Breakthrough Energy Ventures and Climate Investment led this round of funding. The Series B also sees new partners Beazer Homes and Aramco Ventures joining as investors, alongside continued support from existing partners Building Ventures, 2150, and Energy Impact Partners.
According to the World Green Building Council, buildings contribute approximately 40% of the world’s carbon emissions. Furthermore, almost half of the energy used to heat or cool buildings gets wasted due to leaks in their air duct systems. To address this challenge head-on, Aeroseal employs its patented technology, introducing a fog of non-toxic polymers into a building’s pressurized air ducts and envelopes. This process creates seals without requiring physical access to the locations. It also eliminates the need for manual sealing, which is often too unreliable, slow, or impossible to achieve.
The impact of this technology is immediate and measurable. Comparative studies have demonstrated that Aeroseal is 50% more effective at sealing duct leaks than traditional methods and can potentially reduce labor time and costs for duct sealing by 70%, or almost four crew hours.
“Aeroseal’s approach to reducing energy consumption in buildings by addressing air leakage is truly innovative and industry-leading,” said Marc Van Den Berg, Global Managing Director for Ventures at Climate Investment. “Its products have been proven to reduce energy consumption by an average of 30%, significantly impacting the environment and building operations. We are proud to have Aeroseal as a valued member of our Climate Investment portfolio.”
“Aeroseal’s approach to reducing energy consumption in buildings by addressing air leakage is truly innovative and industry-leading,” – Marc Van Den Berg, Global Managing Director for Ventures at Climate Investment
Aeroseal sets its sights on sealing every building and every HVAC system it can
Aeroseal’s goals include securing as many buildings and HVAC systems as possible from energy leaks, regardless of age or construction date. The company has already achieved remarkable milestones, having sealed over 260,000 homes and thousands of commercial buildings across 30 countries. That translates to a reduction of over half a million tons of CO2 emissions to date.
Yet, the potential impact of Aeroseal’s technology extends far beyond what it has already achieved. Aeroseal’s CEO, Amit Gupta, said with the Inflation Reduction Act incentives, builders are quickly adopting Aeroseal technologies as a cost-effective and guaranteed method to build ENERGY STAR® or net zero-ready homes — unlocking billions through tax credits.
“Aeroseal believes that builders finally have a reliable solution to design and build more than double the ENERGY STAR homes every year,” Gupta said. “The industry is taking notice of this ‘easy button,’ with several top U.S. builders already adopting Aeroseal’s duct and envelope sealing technologies. We expect momentum to continue with increased demand for healthier energy-efficient spaces, tighter regulations, and greater statewide incentives for adopting newer codes.”
“We expect momentum to continue with increased demand for healthier energy-efficient spaces,” – Amit Gupta, Aeroseal CEO
America’s biggest home builders are joining the effort
Beazer Homes, a prominent national home builder and recent investor, shares the belief that Aeroseal’s technology will become more important in the future of construction.
“As an industry leader in energy efficiency, Beazer Homes delivers homes well ahead of current energy codes in every market we serve,” said Beazer Homes CEO Allan Merrill. “Moreover, we have committed that each of our homes will meet the Department of Energy’s stringent Zero Energy Ready Home standard by the end of 2025. To execute on this commitment, we have sought partners like Aeroseal who share our dedication to energy efficiency and complement our innovation ambitions. Our decision to become an investor in Aeroseal reflects our belief that the company’s unique technology holds promise for the entire construction industry.”
“The company’s unique technology holds promise for the entire construction industry,” – Allan Merrill, Beazer Homes CEO
The task before Aeroseal is as big as its business opportunity
Retrofitting existing buildings looms as a significant challenge, with approximately 2.5 trillion sq. ft. of existing building space projected to increase to about 4.4 trillion sq. ft. by 2050. In context of this, Bill Gates reflected on Aeroseal’s solutions in a Gates Notes YouTube video — watch it here.
Along with the enormous climate impact of making buildings more efficient, this is a vast $1.5 trillion opportunity. In the U.S., more than 8 million homes get their HVAC systems replaced each year, and each replacement is an opportunity to seal the ducts. Aeroseal has over 1,300 dealer partners and generates over $1 billion in revenue based on its technologies. The company has trained over 4,500 technicians and will continue to create thousands of green jobs yearly.
“Buildings are a critical, yet hard to decarbonize, sector, and Aeroseal’s technology is quickly making an immediate impact on emissions,” said Carmichael Roberts, Breakthrough Energy Ventures. “The company’s solution will make it easier to electrify both new and existing buildings by significantly reducing HVAC demand and mitigating wasted energy from conventional heating and cooling systems.”
“Aeroseal’s technology is quickly making an immediate impact on emissions,” – Carmichael Roberts, Breakthrough Energy Ventures
Aeroseal’s air duct and envelope sealing are vital to the future of green construction
However, business leaders say the ever-evolving construction industry has yet to embrace Aeroseal’s crucial technology fully. Without making duct-and-envelope sealing a default solution in green building practices, electrification advancements will fall short of their potential – like optimizing the performance of homes and buildings, enhancing air quality for occupants, and meeting stringent requirements.
“Buildings are losing up to 40% of energy due to inefficient HVAC systems,” said Jesse Devitte, Co-Founder and General Partner of Building Ventures. “If ductwork isn’t sealed properly, net-zero carbon emissions is an impossible goal for property owners. Aeroseal’s hardware and software sealing solution is what the new and existing buildings of the built world need to reduce that 40%. We are thrilled to continue our support of Amit and team.”
“If ductwork isn’t sealed properly, net-zero carbon emissions is an impossible goal for property owners,” – Jesse Devitte, Co-Founder and General Partner of Building Ventures
Gupta said this latest round of funding comes at a critical juncture for Aeroseal in its fight against climate change. The money will allow the company to:
- Pursue its vision of providing next-generation, easy-to-use duct sealing systems on every HVAC system
- Deliver on its stated AC and furnace efficiencies
- Provide a next-generation envelope-sealing system to help builders construct ENERGY STAR or Net Zero homes
- Increase brand awareness
- Expand its offering around the world
You can also sign up for a free quote on using Aeroseal’s technology in your home or building by signing up at the company’s website here.
About Aeroseal, LLC
Aeroseal is changing the definition of what makes a healthy, energy-efficient building. Its one-of-a-kind carbon dioxide removal technology produces a gum that seals air ducts and building envelopes more efficiently than any other method. The application requires no lifestyle change for building tenants, no building renovation, and can be done in a single afternoon. Aeroseal’s patented methods are one of the best ways to reduce energy loss from buildings and improve HVAC system performance. The company is dedicated to removing one gigaton of carbon dioxide from the earth’s atmosphere annually. That’s enough to fully load 10,000 U.S. aircraft carriers or equal the mass of all non-human land mammals worldwide. Aeroseal has over 200 employees in Dayton, Ohio, who serve contractors, builders, and building owners by sealing ducts and walls in their homes and properties. Visit www.aeroseal.com for more information.
About Breakthrough Energy Ventures
Backed by many of the world’s top business leaders, BEV has raised more than $2 billion in committed capital to support cutting-edge companies that are leading the world to net-zero emissions. BEV is a purpose-built investment firm that is seeking to invest, launch, and scale global companies that will eliminate GHG emissions throughout the economy as soon as possible. BEV seeks true breakthroughs and is committed to supporting these entrepreneurs and companies by bringing to bear a unique combination of technical, operational, market and policy expertise. BEV is a part of Breakthrough Energy, a network of investment vehicles, philanthropic programs, policy advocacy, and other activities committed to scaling the technologies we need to reach net-zero emissions by 2050. Visit www.breakthroughenergy.org to learn more.
About Climate Investment
Climate Investment is an independently managed specialist investor focused on accelerating capital-efficient decarbonization of heavy emitting sectors. Operational since 2017, its team of investment and technical experts has built a portfolio of over 30 outstanding technology and business model innovations. Collectively, its portfolio delivered 57 MT CO2e of cumulative greenhouse gas reduction in the period 2019-2022. Climate Investment was founded by member companies of the Oil & Gas Climate Initiative. They have invested in Climate Investment funds and deployed many of its portfolio innovations, supporting their early commercial development. To learn more, visit www.climateinvestment.com.
About Beazer Homes
Headquartered in Atlanta, Beazer Homes is one of the country’s largest homebuilders. Every Beazer home is designed and built to provide Surprising Performance, giving you more quality and comfort from the moment you move in — saving you money every month. With Beazer’s Choice Plans™, you can personalize your primary living areas for how you want to live in the home at no additional cost. And unlike most national homebuilders, we empower our customers to shop and compare loan options. Our Mortgage Choice program gives you the resources to easily compare multiple loan offers and choose the best lender and loan offer for you, saving you thousands over the life of your loan. We build our homes in Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, North Carolina, South Carolina, Tennessee, Texas, and Virginia. For more information, visit www.beazer.com.
About Aramco Ventures
Aramco Ventures is the corporate venturing subsidiary of Aramco, the world’s leading fully integrated energy and petrochemical enterprise. Headquartered in Dhahran with offices in North America, Europe and Asia, Aramco Ventures strategic venturing program invests globally in start-up and high growth companies with technologies of strategic importance to its parent, Aramco, primarily supporting the Company’s operational decarbonization, new lower-carbon fuels businesses, and digital transformation initiatives. Aramco Ventures also operates Prosperity7, the Company’s disruptive technologies investment program. More info at: www.aramcoventures.com.
2150 is a venture capital firm investing in the sustainable reshaping of the broad urban environment. 2150 backs entrepreneurs working at the forefront of the climate transition and helps scale the companies and technologies with long-term equitable impact across the whole “urban stack” — including how cities are built, designed, constructed, and powered, to the way people live, work, and are cared for. 2150 is part of Urban Partners, a platform of vision-aligned, differentiated, investment verticals shaped around urban problem solving.
About Building Ventures
Building Ventures is an early-stage venture capital firm dedicated to investing in the startups reshaping the way we design, build, operate, and experience our built environment. Learn more about the team and our portfolio companies at www.buildingventures.com and follow us on Twitter and LinkedIn. Built environment entrepreneurs can connect with us at www.buildingventures.com/connect.
About Energy Impact Partners
Energy Impact Partners LP is a global investment firm leading the transition to a sustainable future. EIP brings together entrepreneurs and the world’s most forward-looking energy and industrial companies to advance innovation. With over $3 billion in assets under management, EIP invests globally across venture, growth, credit and infrastructure — and has a team of over 80 professionals based in its offices in New York, Atlanta, San Francisco, Washington D.C., Palm Beach, London, Cologne, and Oslo. For more information on EIP, please visit www.energyimpactpartners.com.
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