Meet the newest unicorn in Europe’s startup ecosystem: 1KOMMA5°. The Hamburg-based startup with 1.5°C greenhouse emissions limit christened in its name joins an elusive club of two dozen other unicorns in Germany.
The German startup has raised €430M in a Series B round that helped it reach a valuation of €1B in just 23 months.
According to Dealroom, climate tech is one of the fastest growing as venture capital is shifting focus to new emerging segments.
The deal announced today by 1KOMMA5° shows how impact startups helping meet UN’s sustainable development goals (SDG) are also benefiting from VC funding.
A new unicorn is born
Ahead of the funding round announced today, 1KOMMA5° had only raised €200M across three rounds.
However, its Series B round saw €215M in new funding that surpassed its target of €150M. The startup has also allocated an additional €215M in re-participation options.
The new round was led by G2VP, a California-based VC firm investing in emerging technology companies that digitise traditional industries.
1KOMMA5° also announced the appointment of Ben Kortlang as Vice-Chairman of their board, reports The SPIEGEL.
With the new funding, the German climate tech startup plans to further fuel the vertical integration of its energy management technology that helps homeowners optimise their energy demand.
Having already expanded into six new markets with the acquisition of Viasol, 1KOMMA5° also plans to continue its expansion further into Spain, Italy, Austria, and Switzerland by the end of 2023.
With the new funding and planned market expansion, 1KOMMA5° is on a mission to make sustainable energy solutions available to a wider customer base across Europe and make cleaner energy a mainstay in these markets.
Energy transition with Heartbeat
At the heart of 1KOMMA5° is a proprietary Internet of Things (IoT) system called Heartbeat.
While the startup calls it an energy manager, the device helps homeowners reduce their electricity cost by connecting their solar system with their electricity storage, wallbox, and heat pump.
The central idea with Heartbeat is that the device will smartly optimise power consumption to allow for energy savings to its consumers.
With the new funding, 1KOMMA5° plans to make this energy IoT device compatible with existing energy devices, which will help expand its reach and impact.
For normal consumers, climate change remains a concern but there are not enough solutions to directly contribute.
With its device, 1KOMMA5° is trying to bring a change where consumers not only have access to energy management but also an ability to pair it with their green energy solution to reduce their energy costs.
1KOMMA5°: what you need to know
1KOMMA5° was founded in 2021 by Jannik Schall, Micha Grueber, Michael Hinderer, Philip Liesenfeld, Philipp Schröder.
Philipp Schröder, CEO and co-founder of 1KOMMA5°, is an ex-Tesla country director and has turned the company with solar plants and heat pumps into a unicorn business.
The startup aims to be the one-stop shop for sale, installation, and services related to solar, electricity storage, and charging infrastructure in Europe.
With the introduction of its Heartbeat product, it has ventured into energy management as well, which succinctly ties with its solar products and heat pumps.
It counts the likes of Porsche Ventures, Norrsken Foundation, Schürfeld Group, Blue Elephant Capital, and eCapital among its investors.
In 2015, the Paris Agreement saw 193 countries sign their commitment to limit the global temperature rise to 1.5°C by reducing greenhouse emissions.
However, the results so far have been underwhelming with some calling the goal almost impossible to achieve.
Climate tech startups like 1KOMMA5° see technology and smart energy management as a way to reach that goal and the funding shows that investors are buying into that promise.