Gradient Raises $18MM in Series A Financing
SAN FRANCISCO–(BUSINESS WIRE)–Gradient, a company built by thermal scientists to rethink HVAC and build products that are good for the planet and great at cooling and heating homes, announced today that it closed a Series A funding round of $18 million, co-led by Sustainable Future Ventures and Ajax Strategies with participation by Safar Partners, Climate Tech Circle, Shared Future Fund, At One, Impact Science, and others. Matt Chagan, Partner at Sustainable Future Ventures, has joined the board.
According to the International Energy Agency, the number of AC units in buildings across the world is projected to increase to 5.6 billion by 2050. Unfortunately, current HVAC systems—built by industry incumbents who haven’t changed their product design in over 50 years—are damaging the environment in an outsized way. HVAC is a major contributor to climate change, due to commonly used refrigerants and the use of fossil fuels. As the climate changes, the need for heating and cooling systems increases, creating a vicious cycle.
Gradient breaks the cycle with products that keep homes cool and comfortable without heating the planet. Their first product, the Gradient, is a replacement for the window AC, designed to give consumers what they want: a beautiful unit that does not block the window. Gradient uses heat pump technology and a climate-friendly refrigerant to create a product that is quiet, effective, and efficient.
Gradient will leverage the new capital in several ways, including:
- Design and development of Gradient’s second product: window heat pump units that decarbonize heating for cold climates
- Accelerate decarbonization with a focus on solutions for multi-family homes
- Add services like hardware monitoring, maintenance, leasing, and demand response services including integration with virtual power plants
- Adding headcount in key roles
“We are reimagining the HVAC industry by building products that keep homes comfortable and healthy for the people who inhabit them, without compromising the environment,” said Vince Romanin, Gradient Co-Founder and CEO. “Support from Sustainable Future Ventures will enable us to expand our operations, build new products, and achieve a 95% carbon reduction when our products are used to both heat and cool.”
In August 2022, Gradient was awarded a seven-year contract for the development and delivery of thousands of cold climate packaged window heat pump units. Gradient was selected by the New York City Housing Authority, New York Power Authority, and New York State Energy Research and Development Authority as a winner of the Clean Heat for All Challenge, giving the company an opportunity to accelerate their vision to transform every home to be more comfortable and healthy without compromising the environment.
“Gradient is building the future of HVAC solutions in the face of ongoing climate change,” said Matt Chagan, Partner at Sustainable Future Ventures. “The global market for HVAC is $100B per year and growing rapidly. Not only is Gradient building products that are good at keeping homes comfortable without heating the planet, they have an immense opportunity to create change in an industry that hasn’t seen material innovation in decades. We are thrilled to support Gradient’s mission and be part of their mission-driven journey.”
About Gradient
Gradient is rethinking HVAC. We build products that are good for the planet and great at keeping your home comfortable, starting with a replacement for the window AC. Gradient is founded by thermal scientists and engineers and flanked by talent from juggernauts like Tesla and Nest, all aligned behind a mission to cool the world. Gradient aims to reduce the carbon emissions from heating and cooling systems, which represent 20% of emissions globally. Backed by Otherlab, Gradient has secured more than $9M in non-dilutive government grants from the U.S. Department of Energy, California Energy Commission, and California Strategic Growth Council grants, in addition to venture funding. To learn more, visit GradientComfort.com
Contacts
Media Contact for Gradient
Dacyl Armendariz, Whipsmart PR
gradient@whipsmartpr.com
