NYC-based green energy startup Sealed announced Thursday it raised $16 million in fresh funding, bringing it one step closer to its mission of taking homes off fossil fuels. The Series B was led by VC firm Fifth Wall’s Climate Technology Fund, with participation from Cyrus Capital, CityRock Venture Partners and Robert Downey Jr.’s FootPrint Coalition venture.
Tackling climate change has become increasingly important over the last several years, and household emissions are an integral part of that. In fact, research shows that houses are responsible for as much as 20 percent of all U.S. greenhouse gas emissions. But Sealed’s co-founder and CEO Lauren Salz says the hardware that can make our homes more energy efficient — things like HVAC upgrades, smart home tech and insulation — still has “really low” customer adoption.
“People aren’t sure exactly what to do,” Salz told Built In. “They have to figure out the best combination of contractors to do the work once they figure out the right solution, and then they have to figure out how to pay for it. So all of that kind of leads to people doing nothing, which is the status quo today.”
Sealed basically handles all of that. It figures out the best solutions for whatever energy problems a house may have, then finds the best contractors to do the job. Plus, Sealed fronts the bill, and customers only have to pay them back based on their energy savings. That means the company only makes money if it helps reduce a customer’s energy usage. Salz says, on average, homeowners see up to 60 percent reductions in energy usage with Sealed.
“Accelerating residential energy efficiency and electrification is one of the fastest ways to reduce our dependence on fossil fuels and restore our environment,” Greg Smithies, a partner at Fifth Wall who will be joining Sealed’s board of directors, said in a statement provided to Built In. “There is no path for any country on the planet to get to zero carbon if we don’t fix our houses. ... Sealed has created a brand new model that makes vital upgrades accessible to consumers, and maps a blueprint for decarbonizing homes across the country and the world.”
Beyond the environmental impact, Salz says another key selling point for Sealed is its ability to improve the quality of people’s lives.
“I think if you focus just on the moral imperative, you miss out on a lot of people. It can be very difficult to motivate people to do something for the benefit of the environment, especially in something as personal as their home,” Salz said. “So, what we focus on is how it benefits homeowners. And there are a lot of benefits. Living in a comfortable home that’s healthier for them, better for their families and also the planet.”
So far the model appears to be working. Sealed says it experienced 200 percent year-over-year growth last year, and it is seeing an “acceleration” in 2021. Now, this fresh funding will help the company expand nationally outside of New York, starting with New Jersey and Connecticut. The company also plans to double the size of its 60-person team in the next year, with more than a dozen open tech positions available now.
