Smart meter startup Gridium raises $14M in funding to help real estate firms in their decarbonization efforts
Climate change is one of the biggest threats of our times. According to some estimates, losses due to weather-related events have increased nearly ten-fold over the last four decades, from a ten-year global average of $12 billion in 1980 to $119 billion in recent years.
One of the many ways to reduce climate change is through building decarbonization, the process of eliminating or reducing the carbon dioxide (CO₂) emissions that contribute to climate change from a building’s energy sources and through the use of low-carbon power sources, and the conversion to an economic system that sustainably reduces and compensates for the emissions of carbon dioxide (CO₂). It’s for this reason that one tech startup is on a mission to help lower energy costs and streamline building maintenance.
Enter Gridium, a San Franciso-based smart meter data analysis startup that partners with leading real estate firms to decarbonize commercial buildings. Gridium engages directly with energy users to promote improved operational efficiency and energy management, using customers’ own data to highlight opportunities for savings.
To further accelerate growth and expand its SaaS footprint, Gridium announced today it has raised $14 million led by Navitas Capital, with participation from other backers from the commercial real estate space—Lincoln Property Company and Tim Naughton, current Chairman and former CEO of AvalonBay. Gridium will also use the funding proceeds to fuel its hiring efforts, scale the software offerings, and bolster strategic partnership opportunities.
In addition, Gridium also said that it had entered into a revolving debt financing facility sized at $10M with Mitsubishi HC Capital America, Inc. The facility supports Gridium’s capacity to provide upgrades to equipment, controls, and software without requiring an upfront capital expenditure from customers, an offering named Gridium Alpha. Projects will be executed in the service territories of PG&E, SDG&E, and SCE in California.
Founded in 2011 by Adam Stein and Tom Arnold, Gridium directly serves over 300 million square feet of office buildings, corporate headquarters, and medical facilities across the United States. These buildings save millions of dollars on electricity, gas, and water utility bills, reduce their carbon emissions, and execute their sustainability goals. Building owners and operators also use Gridium to navigate the energy transition by improving efficiency, financing retrofits, and streamlining operations.
“We’re proud to support Gridium and their commitment to decarbonizing buildings,” said Tom Waters, Director, of Clean Technology Finance at Mitsubishi HC Capital America, Inc. “Working with Gridium’s deeply experienced team as they continue to produce lasting, substantial value for building operators and owners reaffirms our commitment to the United Nations Sustainable Development Goals. This debt facility will boost the team’s ability to move efficiently and capture more share in this important market.”
“The latest raise validates our unwavering commitment to accelerating our customers’ decarbonization strategies and will support the continued expansion of our geographic footprint across the U.S.,” said Tom Arnold, Chief Executive Officer of Gridium. “And as a source for customized engineering, procurement, and construction services paired with project finance capacity, we can strengthen overall service and quality on our Alpha decarbonization projects.”
“Gridium empowers our teams to deliver best-in-class energy management practices and savings to their clients – all while keeping tenants happy and operations running smoothly,” said David Binswanger, Co-CEO of Lincoln Property Company. “Gridium has been quickly adopted across our portfolio, and is the partner we rely on to ensure our assets run their best.”