Denver-based Redaptive added another $50 million to its Series E. Led by long-time investor Linse Capital, the new investment brings the round total to $250 million
The energy efficiency startup announced in December it had raised $200 million from the Canada Pension Plan Investment Board and others after scrapping plans to go public.
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Redaptive helps customers conserve energy and be more efficient, lowering costs and meeting goals to reduce the carbon footprint. Its “energy-as-a-service platform” allows companies to see their energy usage and can make recommendations on improvements.
The firm also can help clients install energy efficiency and sustainability equipment by funding the upfront costs — making such a move much more palatable to businesses trying to conserve.
“This additional contribution further accelerates our ability to bring our solutions to more customers making it possible for them to reduce their carbon footprints and achieve their sustainability goals,” said CEO Arvin Vohra in a release.
The round also included an unnamed strategic investor and did not change the company’s valuation — which was pegged at $1 billion in December — according to an Axios report.
Big money for lower energy bills
Anyone who has opened up their power bill in recent months knows that energy prices are soaring. Add to that the many local, national and company mandates to lower carbon footprints, and investors seem to see a future in energy efficiency.
U.S.-based, VC-backed energy efficiency startups actually saw more money last year than they did even in the free-flowing days of 2021, per Crunchbase data.
Startups in the space saw nearly $900 million invested in them in 66 deals — led by Redaptive’s $200 million in December, per Crunchbase. That beat out the $743 million that such startups saw in 60 deals in 2021.
However, this year has witnessed a significant slowdown, with only $139 million coming to such startups.
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