Green Fusion, a German startup specialising in the digitisation and optimisation of heating systems in apartment buildings, has raised €12 million in Series A funding. The investment round was led by HV Capital (which invested in NEURA Robotics and Upvest)and XAnge (which invested in Sirona Technologies and Gladia), with participation from existing VC investors including BitStone Capital, Übermorgen Ventures, kopa ventures, Vireo Ventures, and Brandenburg Kapital.
European expansion plans
With the new funding, Green Fusion is focusing on scaling and expansion. The capital will be directly invested in installation, sales, product development, and customer support to take the company’s growth to the next level. It is also dedicating a separate unit to the smart control of renewable energy systems.
By 2025, the company aims to equip 3,000 apartment buildings with its software, representing 300% growth. Additionally, Green Fusion will expand its presence beyond Austria and Italy to France and the Benelux countries through pilot projects, paving the way for European expansion.
AI-powered heating optimisation
The German government is pursuing the ambitious goal of climate neutrality by 2045, while CO2 prices continue to rise. These political directives put significant pressure on the housing industry. While comprehensive building renovations require enormous investments, minimally invasive energy consumption optimisation is the only immediate step to significantly reduce heating costs and CO2 emissions.
Founded by Paul Hock, Simon Wagenknecht, and Nina Germanus in 2021 in Berlin, Green Fusion aims to accelerate the heating transition in the housing industry. Using a software solution that monitors heating systems in real-time, the company identifies immediate savings potential and leverages AI to significantly reduce heating costs and CO2 emissions.
On average, 16% of heating costs are saved. For a housing company with 100 systems, this translates to annual savings of over €233,000 after deducting installation and software costs.
Client base
Prominent housing companies and cooperatives such as Gewobag, Rheinwohnungsbau, and Spar-und Bauverein Dortmund already rely on Green Fusion. Overall, the company serves 100 customers managing more than 800,000 rented apartments.
“Almost no heating system in Germany operates optimally, with 80% still in their original factory settings. Costs and CO2 are being wasted, although small measures could have a significant impact. With our solution, we can make heating systems more efficient from day one and prepare them for the transition to heat pumps,” stated Paul Hock, founder and CEO of Green Fusion.
Axel Gedaschko, President of the association, stated: “Optimising energy consumption is an important first step toward climate goals – even before installing heat pumps, switching to district heating, or implementing other energy-saving measures. Only by taking cost-effective, smart approaches can German housing companies continue to offer affordable housing in the long term.”
Investors’ views
“The combination of artificial intelligence, real-time data analysis, and clear customer benefits has made Green Fusion a market leader in no time. We are confident that this company will set the international standard for heating monitoring and optimisation. We see the perfect balance between economic scalability and sustainable impact here. Green Fusion has the ability to decisively drive the heating transition in Europe,” stated Valerie Bures, Managing Director & Partner at XAnge.
“Green Fusion is the game-changer the industry needs to meet the decarbonization challenges of the heating sector. We believe the company has the potential to become the market leader not only in Germany,” said David Kuczek, General Partner at HV Capital.
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