Efficiency-as-a-service brings subscription economy to the energy sector
WASHINGTON, DC--(Marketwired - Feb 2, 2017) - SparkFund, a Washington D.C.-based financial technology company, announced today the close of a $7 million Series B investment led by Energy Impact Partners. Round participants include existing investor Vision Ridge Partners and new strategic partners in the energy and utility space, with a total expected raise of $10 million.
The new funding will allow SparkFund to rapidly grow partnerships and customer reach, giving organizations across the U.S. a simpler way to access new energy technology. Customers understand that they can save money with energy-efficient equipment upgrades, such as LED lighting or smart HVAC technology, but widespread adoption in the commercial sector has been slow. Smart equipment upgrades are expensive and the device purchase process remains time consuming and overly technical.
Subscription model pioneers Salesforce and Netflix redefined how consumers access customer data and entertainment. SparkFund's model moves the energy industry in the same direction by working with energy vendors to provide businesses with efficient technology systems for a single monthly payment and no upfront cost. "Efficiency-as-a-Service offers businesses smart, connected energy systems for a single monthly payment with no risk or hassle of ownership," said Pier LaFarge, SparkFund CEO and co-founder. "What we've built will fundamentally change the way businesses utilize cutting-edge technology in their buildings."
"SparkFund's As-a-Service platform offers customers a clear path towards greater efficiency and smart, integrated buildings. Our utility partners share the same vision: to provide the customer better service and more reliability at an affordable cost," said Lindsay Luger, Managing Director at Energy Impact Partners and newly appointed Board Member of SparkFund.
SparkFund will use the new investment to expand its sales, marketing, software engineering, and operations teams, and add utility and retail energy provider partners, delivering Efficiency-as-a-Service to customers and ratepayers. Investments will also be made in relationships with vendors, including leading ESCOs, contractors, manufacturers, and distributors.
"SparkFund's innovative model is opening new doors to energy efficient technologies for businesses across the country," said Reuben Munger, Managing Partner of Vision Ridge. "Today's announcement further underscores the economic potential of this great business. Through this collaboration of investors and innovators, we will work to expand SparkFund's impact even further -- providing more customers with the ability to save energy and money."
To date, SparkFund has completed nearly 100 projects with customers in 42 states, saving commercial customers an average of $42,000 annually on their energy bills. These projects have cut over 182,000 tons in greenhouse gas emissions, equivalent to the emissions generated by powering 24,000 U.S. homes for a year.
SparkFund is a financial technology company that brings organizations a new, simpler way to access energy efficient products and services. We partner with contractors, ESCOs, manufacturers, utilities, and retail energy providers to offer lighting and other smart, interconnected technologies "As-a-Service", and in some cases through loans or leases. SparkFund is driving adoption of energy efficiency in commercial spaces with all-inclusive energy solutions that customers can easily understand and sign up for. SparkFund is based in Washington, DC and believes that building scalable, market-driven solutions to our society's greatest challenges is the best way to enact change. www.sparkfund.com
About Energy Impact Partners
Energy Impact Partners is a collaborative strategic investment firm that invests in companies optimizing energy consumption and improving sustainable energy generation. Through close collaboration with its strategic investor base, EIP seeks to bring the best companies, buying power and vision in the industry to bear on the emerging energy landscape. EIP's partners include Southern Company, National Grid, Xcel Energy, Ameren, Great Plains Energy, Fortis Inc., AGL, and Avista. www.energyimpactpartners.com
About Vision Ridge Partners
Launched in 2008 to invest in transformative growth companies within the sustainable energy sector, Vision Ridge Partners is an investment firm focused on the future. Our vision is to unleash capital markets to solve our generation's greatest challenge: the threat posed to our planet by climate change. www.vision-ridge.com