Climate tech is a booming sector that attracts investors who are looking for innovative solutions to tackle the global climate crisis. In this article, we will take a look at how three climate tech startups used their pitch decks to raise $6.8 million in total funding.
Sensorfact: Smart Energy Savings for the Manufacturing Industry
Sensorfact is a SaaS company that helps industrial manufacturers reduce their energy consumption and carbon footprint by providing them with real-time insights and recommendations. Sensorfact raised €3.7 million ($4.2 million) in a seed round led by FORWARD.one in 2020.
Sensorfact’s pitch deck showcases the following elements:
- The problem: Industrial manufacturers waste 20-30% of their energy due to inefficient processes and equipment.
- The solution: Sensorfact’s wireless sensors and cloud-based software that monitor, analyze, and optimize energy usage across machines and processes.
- The market: The global industrial energy management system market is expected to grow from $18.9 billion in 2020 to $33.5 billion by 2025, at a CAGR of 12.1%.
- The traction: Sensorfact has over 100 customers in 10 countries, saving them an average of 12% on their energy bills and reducing their CO2 emissions by 25,000 tons per year.
- The team: Sensorfact was founded by Pieter Broekema and Paul Olieman, who have backgrounds in engineering, data science, and entrepreneurship.
- The ask: Sensorfact was seeking €3.7 million ($4.2 million) to expand its product, team, and market reach.
Dandelion Energy: Affordable Geothermal Systems for Green Homes
Dandelion Energy is a home geothermal company that offers low-cost, high-efficiency, and environmentally friendly heating and cooling systems. Dandelion Energy raised $16 million in a Series A round led by GV (formerly Google Ventures) and Comcast Ventures in 2020.
Dandelion Energy’s pitch deck highlights the following aspects:
- The opportunity: Heating and cooling account for 47% of US residential energy use and 15% of US greenhouse gas emissions. Geothermal systems can reduce both by 75%, but they are too expensive and complicated for most homeowners.
- The product: Dandelion Energy has developed a proprietary geothermal system that is 50% cheaper, 10x faster, and 5x quieter than conventional systems. It also provides smart thermostats, remote monitoring, and maintenance services.
- The traction: Dandelion Energy has installed over 500 systems in New York and Connecticut, generating over $10 million in annual recurring revenue and saving over 20,000 tons of CO2 per year.
- The team: Dandelion Energy was founded by Kathy Hannun and James Quazi, who are former Google X engineers and experts in geothermal technology and operations.
- The ask: Dandelion Energy was seeking $16 million to scale its operations, expand its geographic footprint, and accelerate its growth.
Cove.Tool: Automated Building Performance Optimization Software
Cove.Tool is a software platform that helps architects, engineers, and contractors design high-performance buildings that save energy, water, and money. Cove.Tool raised $5.7 million in a seed round led by Mucker Capital and Urban Us in 2020.
Cove.Tool’s pitch deck demonstrates the following points:
- The challenge: Buildings are responsible for 40% of global energy consumption and 39% of global carbon emissions. However, designing energy-efficient buildings is a complex, time-consuming, and costly process that requires multiple tools and iterations.
- The solution: Cove.Tool is an automated building performance optimization software that simplifies and streamlines the design process. It integrates with popular design tools, such as Revit and SketchUp, and uses machine learning to generate optimal solutions for energy, daylight, comfort, and cost.
- The market: The global building energy management system market is projected to reach $12.9 billion by 2025, growing at a CAGR of 16.5%. Cove.Tool targets the architecture, engineering, and construction (AEC) industry, which is worth $10 trillion annually.
- The traction: Cove.Tool has over 1,000 customers in 23 countries, including leading firms such as Perkins+Will, HOK, and Skanska. It has helped them design over 3,000 projects, saving over $100 million in energy costs and 1 million tons of CO2 per year.
- The team: Cove.Tool was founded by Sandeep Ahuja, Daniel Chopson, and Patrick Chopson, who have backgrounds in architecture, engineering, and software development.
- The ask: Cove.Tool was seeking $5.7 million to enhance its product, grow its team, and scale its business.
These three pitch decks show how climate tech startups can effectively communicate their value proposition, market opportunity, product differentiation, customer validation, and funding needs to potential investors. They also illustrate how climate tech startups can leverage their impact on the environment and society as a competitive advantage and a compelling story.
