SparkFund, a District of Columbia-based financial technology company that is aiming to provide subscription-based “Energy Efficiency-as-a-Service,” announced on February 7 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 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 SparkFund CEO Pier LaFarge. “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.03