Quilt Secures $20 Million Series B Funding to Revolutionize Heat Pump Market
Quilt, a Redwood City, California-based startup specializing in innovative and customizable heat pump systems, has successfully closed a $20 million Series B funding round. This latest investment follows a $33 million Series A round announced in April 2024, underscoring the company’s rapid growth and the increasing demand for energy-efficient heating and cooling solutions.
Strategic Investment and Leadership Expansion
The Series B round was led by Energy Impact Partners and Galvanize, with additional participation from Alumni Ventures, Gradient Ventures, Incite Ventures, and Lowercarbon Capital. Notably, Veery Maxwell from Galvanize will join Quilt’s board of directors, bringing valuable expertise to the company’s strategic direction. Additionally, former Nest CFO Tom vonReichbauer will also join the board, a move that aligns with Quilt’s strong ties to Nest, as many of its team members are former Nest employees.
Expanding Market Presence
With the new funding, Quilt aims to broaden its market reach. To date, the company has installed nearly 1,000 units across 16 U.S. states and five Canadian provinces. Co-founder and CEO Paul Lambert highlighted this milestone in a recent note on the company’s website, emphasizing the growing adoption of Quilt’s heat pump systems.
Innovative Approach to Heat Pump Technology
Quilt distinguishes itself in the heat pump market by adopting a software- and design-centric approach. This strategy challenges established industry players by offering sleek, customizable units that integrate seamlessly into modern homes. A testament to this innovation is a recent over-the-air update that improved the performance of existing units by more than 20%, showcasing Quilt’s commitment to continuous improvement and customer satisfaction.
The Growing Heat Pump Market
The heat pump industry is experiencing significant growth, driven by increasing consumer awareness of energy efficiency and supportive climate regulations. In 2023, for the first time, Americans purchased more heat pumps than gas furnaces, indicating a shift towards more sustainable heating and cooling solutions. This trend is expected to continue, with the global heat pump market projected to grow from $72.4 billion in 2022 to $136.8 billion by 2030.
Quilt’s Unique Positioning
Founded by a team of former Google employees, Quilt aims to become the Nest of heat pumps by focusing on design and user experience. The company’s ductless mini-split systems offer zoning capabilities, allowing homeowners to control the temperature of individual rooms, thereby enhancing comfort and energy efficiency. This approach addresses common consumer concerns about the aesthetics and functionality of traditional heat pump systems.
Future Outlook
As Quilt continues to expand its footprint and refine its product offerings, the company is well-positioned to capitalize on the growing demand for energy-efficient home heating and cooling solutions. The recent Series B funding will enable Quilt to accelerate its growth, invest in research and development, and further disrupt the traditional heat pump market with its innovative approach.
