Berlin-based VARM, an insulation startup that aims to drive household decarbonisation, announced on Monday, that it has secured a seven-figure pre-seed funding round. The amount has not been disclosed.
VARM says that the funding will be utilised to develop technological infrastructure for cavity-wall insulation and expand its presence in Germany.
Investors in round
The funding came from investors including Foundamental and A/O, along with strategic support from key figures in the industry, such as the founders of Thermondo and ecoworks.
Patric Hellermann, general partner at Foundamental, says, “Tens of millions of buildings need retrofit insulation, to remain viable economically and climate-wise. Christian and Sebastian found an ingenious way to industrialise retrofit insulation with their technology and process.”
“We’re delighted to be supporting them and the entire VARM team to scale their impactful model across Germany and beyond,” adds Hellermann.
Driving household decarbonisation
The built world in the EU is responsible for 35 per cent of energy-related emissions, with 75 per cent of buildings being energy inefficient. To achieve net-zero emissions, it is crucial for homeowners to prioritise insulation and structural changes in their properties.
Gregory Dewerpe, general partner and founder at A/O says, “We can’t decarbonise the built world without retrofitting existing building stock and upgrading insulation is often the most efficient way to do this.”
“Unfortunately, the shortage of installers and the fragmented journey has meant that homeowners often overlook insulation. VARM is making it easier and more affordable for buildings and homeowners to upgrade their insulation, reducing energy consumption and bills,” adds Dewerpe.
These improvements not only cut down carbon emissions but also enhance the efficiency of future green technologies like PV modules and heat pumps.
VARM, founded in 2023 by Christian Gruener and Sebastian Wuerz, aims to simplify the process of cavity wall insulation for homeowners in the Berlin area. Its goal is to insulate one million homes in the next decade, contributing to energy efficiency and sustainability efforts.
VARM is expanding its scope beyond single-family homes to address the efficiency needs of multi-family buildings across the continent. This expansion aligns with EU regulations striving for zero emissions in all buildings by 2050.
By targeting both single and multi-family homes, VARM aims to have a broader impact on energy efficiency, contributing to the larger goal of environmental sustainability and compliance with EU regulations.
Speeding up the heat transition
VARM is actively training individuals to become skilled insulators, addressing the skills gaps in insulation, solar, and heat pump sectors. This initiative aims to expedite the heat transition process and promote sustainable heating solutions.
Christian Gruener says, “One of the most effective ways to decarbonise Europe is to improve existing building stock through insulation. Sadly, too often this solution is overlooked. We’re speeding up the transition to net-zero by providing homeowners with everything they need to safely and affordably insulate their homes.”
“We’re only at the beginning of our journey and we’re excited to have the support of Foundamental and A/O, two of the leading construction and built-word investment funds to help us grow and succeed,” adds Gruener.
Brief about investors
Foundamental is an investor in technology startups related to construction, architecture, engineering, design, renovation, and related fields. The firm supports early-stage founders across the Americas, Asia-Pacific, and Europe. Its investments include Infra.Market, Wiz, Speckle, Enter, Snaptrude, Welcome Homes, and Forge.
A/O claims to be Europe’s largest VC firm dedicated to transforming the built world industry. It invests in areas like new materials, AEC, and building operations. The firm’s portfolio includes startups such as SPAN, Passivelogic, Satellite Vu, Enter, and Plentific, focusing on transformation and sustainability in the real estate and construction sectors.
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