Atlanta architecture technology startup cove.tool raised $30 million to continue expanding its sustainable building design platform.
Why it matters: Cove. tool's platform shows designers and builders the cheapest products they can use to make a structure more energy efficient. The startup is growing in an era of increasing climate consciousness and could help firms meet their sustainability goals or local regulations. Buildings and construction account for about 37% of global carbon emissions, according to the UN Environment Programme's Global Status Report for Buildings and Construction. The Series B round indicates the startup's high-growth trajectory and upcoming hiring and expansions.
Inside the deal: Global investment firm Coatue Management LLC led the round with support from existing investors Mucker Capital, Urban Us and Knoll Ventures. Robert Downey Jr.'s FootPrint Coalition, a venture capital firm with a mission to combat climate change, also participated. Atlanta's Tech Square Labs is an early investor.
About the company: CEO Sandeep Ahuja founded the company in 2018 with Patrick Chopson and Daniel Chopson. The team focuses on automation and machine learning to make sustainable design more accessible to more builders, reducing the need for costly consultants. The startup's platform continues to evolve to include 3D and load modeling in addition to its foundational energy modeling tool. Cove.tool has more than 15,000 users in 30 countries. The company says its platform has offset 28.5 million tons of carbon in 2021. The startup has a downtown office at Centennial Tower, which will likely expand as it adds more employees, Ahuja said. Most employees are based in Atlanta and have a hybrid work schedule when low COVID-19 cases permit in-person work, Ahuja said.
What's next: Cove.tool more than doubled its team to 60 in the past year and plans to double again in this next year, Ahuja said. The startup will also expand its product suite, including offering more software integrations and making performance data more accessible. Cove.tool is also building out its offering to product manufacturers, which allows them to model their products within designers' projects on the cove.tool platform. That feature allows manufacturers to have a data-driven way to show how the product could help with energy efficiency or other features, Ahuja said, updating the current process of trade show demonstrations. Cove.tool is also launching a global design competition for sustainable, affordable housing.
What they're saying: "The construction and operation of buildings accounts for 40% of global greenhouse gas emissions. By combining energy efficiency, design and transparency for material selection, cove.tool addresses this massive problem. It's a prime example of a scalable business that employs machine learning and principled leadership to literally build a better future," Downey said in a statement.
