Total amount raised
$18 Millions
Latest funding date
February, 2023
Location
Gradient has successfully raised funds through multiple rounds, attracting notable investors such as Climate Capital and Collaborative Fund. The company focuses on innovative heating and cooling solutions, particularly their All-Weather 120V Window Heat Pump.
Keep reading to explore the intricacies of Gradient's fundraising journey and the investors backing this forward-thinking platform.
What Is Gradient?
Gradient, founded in April 2017, is based in San Francisco, California. The company was established by Kipp Bradford and Vincent Romanin.
Specializing in heating and cooling solutions, Gradient aims to reduce greenhouse gas emissions with their high-efficiency, low-carbon heat pumps. Their products are designed for both residential and commercial use, emphasizing ease of installation and environmental sustainability.
With a team of 51-100 employees, Gradient is committed to making homes more comfortable and healthy without compromising the environment.
How Much Funding Has Gradient Raised?
- Pre-Seed Round
- Amount Raised: $100K
- Date: March 2019
- Lead Investors: Third Sphere, URBAN-X
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To develop initial prototypes and validate the market need for their innovative HVAC solutions.
- Seed Round
- Amount Raised: $5.9M
- Date: December 2019
- Lead Investors: Prime Impact Fund
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale product development and begin initial market entry.
- Debt Financing
- Amount Raised: $6.5M
- Date: April 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support operational expenses and expand manufacturing capabilities.
- Grant
- Amount Raised: $9M
- Date: February 2023
- Lead Investors: US Department of Energy
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To fund research and development for energy-efficient HVAC solutions.
- Series A
- Amount Raised: $18M
- Date: February 2023
- Lead Investors: Ajax Strategies, Sustainable Future Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate product development and expand market reach.
- Series A Follow-On
- Amount Raised: $9M
- Date: June 2023
- Lead Investors: Climate Investment
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance manufacturing capabilities and support business-to-business channels.
- Convertible Note
- Amount Raised: Not publicly disclosed
- Date: October 2023
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To provide flexible financing for ongoing operational needs.
- Series A Follow-On
- Amount Raised: $9.5M
- Date: February 2024
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further scale production and enhance product offerings.
Total Amount Raised: $57M. Current Valuation: Not publicly disclosed.
Key Investors
- Climate Investment
- Details: Climate Investment is an independently managed specialist investor focused on accelerating capital-efficient decarbonization of heavy-emitting sectors. Founded by member companies of the Oil & Gas Climate Initiative (OGCI), it has built a portfolio of over 30 technology and business model innovations.
- Investment Focus Areas: Decarbonization of heavy-emitting sectors, built environment, innovations in HVAC systems.
- Notable Investments: 75F, Aeroseal.
- Prime Impact Fund
- Details: Prime Impact Fund is a venture capital firm that invests in breakthrough climate technologies. The fund aims to support early-stage companies that can significantly reduce greenhouse gas emissions.
- Investment Focus Areas: Climate technology, renewable energy, sustainable agriculture.
- Notable Investments: Not publicly disclosed.
- Ajax Strategies
- Details: Ajax Strategies is a venture capital firm that focuses on investing in companies that are driving the transition to a sustainable economy. They support innovative solutions in various sectors.
- Investment Focus Areas: Clean energy, sustainable transportation, circular economy.
- Notable Investments: Not publicly disclosed.
- Sustainable Future Ventures
- Details: Sustainable Future Ventures is an investment firm dedicated to funding companies that are creating sustainable solutions for the future. They focus on scalable technologies that can have a significant environmental impact.
- Investment Focus Areas: Renewable energy, energy efficiency, sustainable materials.
- Notable Investments: Not publicly disclosed.
- US Department of Energy
- Details: The US Department of Energy (DOE) is a federal agency responsible for advancing the national, economic, and energy security of the United States. It supports research and development in energy technologies.
- Investment Focus Areas: Energy efficiency, renewable energy, advanced manufacturing.
- Notable Investments: Not publicly disclosed.
What's Next for Gradient?
Gradient is poised to capitalize on the growing demand for energy-efficient HVAC solutions. With the global market for heat pumps expected to surge from 180 million units in 2020 to 600 million by 2030, the company is well-positioned to expand its product offerings and market reach. The recent $27.5 million Series A funding will enable Gradient to enhance product design, manufacturing, and software services, while also adding key roles to support this growth.
Future fundraising opportunities are likely, given the company's innovative approach and the increasing recognition of heat pumps as a critical technology for decarbonization. Potential sources include additional venture funding and non-dilutive government grants. However, Gradient may face challenges such as reducing the purchase and installation costs of heat pumps and overcoming complex renovations required for installations. Despite these hurdles, the company's strategic focus on business-to-business channels and integration with virtual power plants positions it for continued success.
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