Budderfly, which aims to bring corporate customers energy savings without out-of-pocket costs, today announced it has raised $55 million in a growth equity and debt funding round led by Balance Point Capital, with participation from Connecticut Innovations. The fresh funds follow a $22 million funding round that included Edison Partners and the state of Connecticut (via the Department of Economic and Community Development). CEO Albert Subbloie says the money will fuel the startup’s go-to-market efforts and accelerate its product growth.
“Successful energy management is a real problem for most organizations, due to the complex and fragmented nature of the energy space. It is a daunting challenge for companies to navigate and implement energy efficiency measures with the many and complex energy savings solutions being offered by hundreds of vendors. We make it simple,” said Subbloie. “Our service combines accurate point of consumption measurement and controls with our energy efficient infrastructure upgrades, maintenance, expertise, and monitoring to provide a one-stop, single vendor energy management solution that delivers real savings to our customers.”
Shelton, Connecticut-based Budderfly’s “energy efficiency as a service” model aims to address the roughly 30% of power used in commercial buildings that’s lost to inefficient infrastructure — equating to nearly $60 billion annually. (Researchers at MIT estimate that office structures account for 20% of all U.S. energy usage). The company’s solution combines over 30 savings categories, such as monitoring, maintenance, and upgrades like LED lighting, solar and battery solutions, insulation improvements, and environmentally friendly HVAC systems, as well as custom-designed internet of things (IoT) sensors, temperature and refrigeration controls, and renewable energy sourcing.
Budderfly pockets a portion of the resulting savings, but provides the upfront capital for these installations and maintains all devices and software used to reduce inefficient consumption and bring down energy bills. It also handles electricity bills and payments and delivers “continuous” technology and energy upgrades, in part through proprietary connected sensors that meter and report on power use.
Budderfly says it has contracted nearly 1,000 locations across North America to date, including office buildings, retail stores, restaurants, schools, recreational buildings, and health care facilities. Over the next 10 years, it hopes to manage over $3 billion in customer energy spending.
“Energy management is complex and fragmented, and Budderfly solves companies’ energy challenges and achieves tangible cost savings. Budderfly has done a terrific job bringing their holistic energy management solution to market and accelerating growth,” said Edison Partners general partner and Budderfly board member Gary Golding. “Their leadership and industry-changing technology makes them a great fit in our enterprise software-as-a-service portfolio.”