Climate Tech Company ​​Sealed Expands Series B To $45.5 Million

By Annie Baker ● May 4, 2022
  • Sealed recently announced the expansion of its Series B funding with an additional $29.5 million. These are the details.

Sealed has announced the expansion of its Series B funding with an additional $29.5 million equity investment led by Fifth Wall Climate Tech with participation from Robert Downey Jr.’s FootPrint Coalition, CityRock Venture Partners, Cyrus Capital, and Keyframe Capital, bringing its total capital raised to $62.5 million. This investment follows explosive company growth as homeowners adopt Sealed’s model for eliminating the complications and up-front costs of heat pump HVAC, weatherization, and other home improvements that stop energy waste, enhance comfort and slash greenhouse gas emissions.

Sealed grew 350% from 2020 to 2021, driven by increasing heat pump sales and an initial series of expansions from New York State to Connecticut, New Jersey, and the Philadelphia metro area. And Sealed recently expanded to the Chicago metro area on its march towards national expansion.

Sealed was founded in 2012 to make it easy and affordable for people to be more comfortable in their homes while using less energy. And Sealed’s work also slashes carbon emissions from home energy use, which account for 20% of the U.S. total. With 85% of the nation’s housing stock built before 2000, millions of homes are poised to reap the benefits of upgrading insulation, sealing air leaks, and replacing inefficient, fossil-fuel-powered heating systems with electric heat pumps.

Sealed provides homeowners with top-to-bottom support in designing, managing, and financing home weatherization and electrification upgrades. And after a remote home assessment, Sealed determines the right combination of home improvements to reduce energy waste, including insulation, air sealing, smart thermostats, lighting, and heat pump HVAC.

The resulting efficiencies can cut energy use by as much as 50% while balancing out temperatures across the house and eliminating fossil fuel heating sources. And because Sealed’s unique payment program is based on actual energy reductions achieved, the company is accountable for its impact.

KEY QUOTES:

“We jumped at the chance to increase our investment in Sealed because they have proven they can execute in new markets, attract top-level talent, and scale their proven direct-to-consumer marketing model. Sealed has created the easy button for energy efficiency in consumers’ homes. Most people want their homes to be comfortable and efficient, they just don’t know how to do it or finance it. Sealed has created the one-stop-shop to get that work done and financed, with zero cash outlay, and more importantly, zero headache, to the homeowner. That’s completely unique in the market.”

– Greg Smithies, Partner at Fifth Wall and co-lead of the Climate Tech Investment team

“Updating America’s outdated housing stock with high performance insulation, smart technology and efficient heat pump HVAC is key to eliminating energy waste and fighting climate change – and homeowners are really waking up to this. Surging interest in Sealed positions us to dominate the home energy efficiency and electrification market. Our investors have decided to double down so we can meet that demand.”

– Lauren Salz, CEO at Sealed

“In these times of a global energy transition and geopolitical unrest, Americans are more motivated than ever to stop wasting energy and move away from fossil fuels. With a decade of experience providing homeowners more comfort with less energy, Sealed is the perfect company to deliver a new type of weatherization and electrification home improvement experience that meets the moment. With the added support of this investment round, we are ready to expand our services to millions of American homes.”

– Andy Frank, President and co-founder of Sealed