Clean Urban Energy, a provider of web-based software designed to improve energy efficiency for commercial buildings, announced Thursday that it has raised $7 million in its first round of funding led by Battery Ventures.
The software keeps track of certain zones of a building and regulates the heating, ventilation and cooling (HVAC) units associated with those locations. That means that if one part of a building doesn’t require as much heating or cooling, the software will power down the HVAC units to conserve energy.
The technology improves energy savings by 10 percent and reduces peak electricity demand — such as during a particularly hot or cold day — by around 30 percent based on its existing clients, according to the company.
Clean Urban Energy is among a batch of startups that are promoting “smart grid” technology — that is, managing an electrical power grid with advanced computer algorithms to promote better energy efficiency and reduce electricity waste.
The Chicago, Ill.-based startup was founded in 2007 and its software is currently deployed in four cities: New York, San Francisco, Los Angeles and Houston. Battery Ventures partner Jason Matlof will join the board of the company as part of the deal. Rho Ventures also participated in the funding round, and Joshua Ruch from the firm will also join Clean Urban Energy’s board of directors.