A pioneering climate technology 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. The company has already reduced over half a million tons of CO2 emissions in the atmosphere and the latest round of funding will enable them to do more.
Miamisburg-based Aeroseal has created a system to reduce energy leaks to almost zero in some buildings and investors are taking notice.
Buildings contribute about 40% of the world’s carbon emissions, according to the World Green Building Council. Almost half of the energy used to heat or cool a building gets wasted due to leaks in its air duct system.
Aeroseal’s technology delivers a fog of non-toxic, sticky polymers into a building's air ducts and envelopes to create seals where manual sealing methods can't.
Since its inception Aeroseal has sealed 260,000 residential and commercial buildings across 30 countries, with support from several top U.S. home builders and a network of specialized HVAC dealers. This translates to a reduction of over half a million tons of CO2 emissions to date and saved homeowners thousands on energy bills.
“Buildings are a critical, yet hard to decarbonize, sector, and Aeroseal’s technology is quickly making an immediate impact on emissions,” said investor Carmichael Roberts of 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.”
Company CEO Amit Gupta says with the help of new funding – led by investors Breakthrough Energy Ventures and Climate Investment – Aeroseal hopes to secure its cumulative 260,000 buildings annually within three years.
“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 hopes to secure as many buildings and HVAC systems as possible from energy leaks, regardless of age or construction date. Retrofitting existing buildings looms as a significant challenge, with approximately 2.5 trillion square feet of existing building space projected to increase to about 4.4 trillion by 2050, according to an Aeroseal press release.
How Aeroseal will help companies save billions
The potential impact of Aeroseal’s technology may extend beyond what it has already achieved. With the Inflation Reduction Act incentives, Gupta said 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.”
Prominent national home builder and recent investor Beazer Homes CEO Allan Merrill said he is utilizing companies like Aeroseal to help make sure homes built 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,” Merrill said. “Our decision to become an investor in Aeroseal reflects our belief that the company’s unique technology holds promise for the entire construction industry.”
Aeroseal has over 1,300 dealer partners and since its inception has generated $1 billion in revenue based on its technologies. The company, which employs 200 local employees, has trained over 4,500 technicians and plans to create thousands of green jobs yearly.
Although Breakthrough Energy Ventures and Climate Investment led Series B funding, the round also saw the addition of new investment partners Beazer Homes and Aramco Ventures joining, alongside continued support from existing partners Building Ventures, 2150, and Energy Impact Partners.
