Gradient Secures $18 Million in Series A Funding to Shake Up the Heat Pump Game
Big things are happening at Gradient. We recently closed an $18 million Series A funding round co-led by Sustainable Future Ventures and Ajax Strategies with participation by Safar Partners, Climate Tech Circle, Shared Future Fund, At One, Impact Science, and others. Matt Chagan, Partner at Sustainable Future Ventures, has joined our board.
This exciting development will allow us to continue to revolutionize the heat pump industry and bring cutting-edge tech to customers in every U.S. state. It's clear that investors are confident in our mission and potential for growth, and we’re so thrilled to begin this next chapter.
Our Series A close marks the end of a year that’s been a whirlwind of action for us. In 2022 we began manufacturing and assembly of our revolutionary heat pump product here in California. Our cutting-edge tech quickly gained traction, and today we have customers in every state.
But the fun didn’t stop there.
Gradient named one of TIME's Best Inventions of 2022
We were also named one of TIME’s Best Inventions of 2022 and a Fast Company World Changing Idea. Our story captured the attention of media outlets worldwide, with editorial coverage reaching a staggering audience of more than half a billion people. From The Economist to The Washington Post and Bloomberg to Vox (and many more), the Gradient heat pump has been featured in some really exciting publications.
Partnering to electrify buildings
Our work supporting state and local government efforts to electrify buildings is expanding at a crazy pace, too. For starters, we successfully completed our grant with the State of California Energy Commission for a low-GWP, high-efficiency heat pump and air conditioner.
Gradient also won a $24 million contract to bring accessible carbon friendly heating and cooling to low-income housing as a winner of the NYCHA Clean Heat for All Challenge. How exciting is that? These contracts have truly been game-changers for our team and for the communities we serve.
Ensuring that your Gradient meets energy efficiency and safety standards
On the product side, the Gradient heat pump is now ENERGY STAR certified, which means it meets strict energy-efficiency specifications set by the U.S. EPA. The Gradient also bears the ETL Certification Mark, signaling compliance with industry safety standards as determined by a third-party testing program overseen by the U.S. Department of Labor's Occupational Safety and Health Administration.
This means you can rest easy knowing that your Gradient not only cuts greenhouse gas emissions by up to 95% – it also meets the highest standards of safety.
Heat pumps are becoming the go-to choice for home heating and cooling
It's clear that heat pumps are on the rise in popularity. In fact, we're seeing an incredible amount of interest, with more than 100,000 searches for heat pumps each month. But it's not just the general public that’s recognizing the potential of heat pumps – the government is also getting behind them in a big way.
The Inflation Reduction Act and Defense Production Act provide major support and incentives for heat pumps, signaling that they’re a solution to not only improve energy efficiency, but also to contribute to the country's economy and security.
With this kind of backing, it's no wonder heat pumps are a go-to choice for both residential and commercial buildings looking to reduce their energy consumption and carbon footprint.
So what’s next for Gradient in 2023?
Exciting news for 2023: We’ll start testing and demonstrating our cold-climate heat pump prototype in NYCHA housing. But that's not all – we’ll also deliver and install hundreds of Gradient units in the U.S., with a focus on multi-family homes. (And for those of you on the other side of the pond, Gradient has big plans to expand operations to Europe - stay tuned!)
To top it all off, we’ve been nominated for The Earthshot Prize 2023.
All in all, it’s been a truly eventful year for Gradient and the heating and cooling industry as a whole. Thanks for following along on our journey – and keep an eye out for more exciting updates.