A clean-tech venture capital fund led by Microsoft Corp. founder Bill Gates has invested millions into one of Dayton's fastest-growing companies.
Aeroseal, a climate technology company in Miamisburg, has raised $22 million in equity to help scale its research, development and marketing footprint and bolster its dealer network.
The Series A investment round was led by Breakthrough Energy Ventures, the venture capital arm of Breakthrough Energy — a Gates-founded organization that invests in climate solutions. Participating investors include Energy Impact Partners and Building Ventures.
Related: Aeroseal to add nearly 50 workers, expand Miamisburg HQ
Founded in 2001, Aeroseal engineers duct-sealing technology for residential and construction clients in 50 states and more than two dozen countries. Leaky ducts in HVAC systems are one of the largest causes of energy inefficiency in U.S. homes, CEO Amit Gupta said — and Aeroseal's technology offers a solution to that problem.
"This funding ensures our team can reach its goal of shrinking carbon emissions by 1 gigaton," Gupta said. "We are doubling our focus on innovation to make our technologies even easier and more cost-effective to deploy throughout the world."
Aeroseal has been on a rapid growth trajectory since its establishment. Today, Aeroseal's duct-sealing tech has generated more than $500 million in energy savings, and its footprint has expanded to 1,200 dealer partners in 27 counties.
In April, I reported that Aeroseal planned to expand its headquarters and create 47 new jobs, increasing its headcount by 40% and generating $3.3 million in new annual payroll. The latest investment will help accelerate that push.
"We literally want to put a dent in our fight against climate change," Gupta told me. "We are expanding worldwide. We have impacted over half a billion square feet of building space and over 200,000 homes, and we want to impact millions more."
This is the first venture round for Aeroseal, though the company has secured outside financing in the past — most notably from JobsOhio.
"Aeroseal’s technology addresses a challenge found in every building: energy waste caused by undetectable and unreachable leaks," said Carmichael Roberts, member of Breakthrough Energy Ventures and co-founder of Boston-based venture firm Material Impact. "This investment will help them build on their market penetration and expand their efforts to reduce carbon emissions in buildings, while creating cleaner, healthier air for us to breathe."
In the next 12 to 24 months, Gupta said he plans to add dozens of additional workers, bringing the company's headcount well above 150 employees. He's also pursuing opportunities for international growth, with the goal of expanding Aeroseal's footprint to 35 or 40 countries by the end of 2021.
In 2019, Aeroseal was also one of 15 startups across the U.S. selected to join a national business development program. Each startup was selected to participate based on its potential to create at least 500 jobs within the next five years.
Headquartered in Miamisburg, Aeroseal provides technology that seals air leaks in HVAC ductwork and building envelopes to improve air quality and generate energy savings. The company is led by Amit Gupta and employs about 102 workers.
Breakthrough Energy is an umbrella organization whose members include Amazon founder Jeff Bezos, Bloomberg L.P. co-founder Mike Bloomberg, LinkedIn co-founder Reid Hoffman and Alibaba Group co-founder Jack Ma, among others. Its clean-tech venture arm, Breakthrough Energy Ventures, has raised more than $2 billion in committed capital to support entrepreneurs building companies that can significantly reduce emissions from agriculture, buildings, electricity, manufacturing and transportation.
