Amsterdam-based Next Sense, a leading smart building platform SaaS solutions provider, has secured €11.5M in Series A funding. The round was co-led by ABP and ETF Partners, with participation from existing shareholders Edge, SHAPE Capital, and Timeless Investments.
The funding will accelerate the company’s mission to decarbonise the built environment by scaling operations globally and enhancing its Smart Building Platform.
How Next Sense tackles energy efficiency in real estate
In February 2024, Next Sense emerged from the merger of EDGE Next (a subsidiary of EDGE Technologies) and Sense by PHYSEE. The merger aims to strengthen data-driven sustainability initiatives in real estate, addressing the pressing need for standardised solutions to reduce buildings’ carbon footprint.
The company tackles an urgent challenge: the real estate industry is responsible for 37-40% of global CO2 emissions. Currently, only 3% of European offices meet the emission standards set by the Paris Climate Agreement—highlighting a critical gap in meeting future climate goals. Speaking to TFN, Ferdinand Grapperhaus, CEO of Next Sense, explains: “Buildings are notoriously energy-inefficient, leading to significant energy waste and increased carbon emissions. Corporate tenants and landlords are eager for more energy-efficient solutions, but they face challenges due to poorly integrated systems and complex building operations. Next Sense addresses this gap by providing a unified platform that simplifies energy optimization, improves sustainability, and enhances the overall performance of buildings.”
Coen van Oostrom, CEO of EDGE Technologies and Alliance of CEO Climate Leaders at World Economic Forum, and Ferdinand Grapperhaus, CEO and co-founder of Sense by PHYSEE and now CEO of Next Sense, are working to create a unified platform that enhances commercial real estate sustainability through advanced technology.
Smart building platform: real-time monitoring and AI-driven controls
Next Sense uses advanced machine learning algorithms to analyse building data, helping owners optimise energy use and improve operations. The platform combines real-time monitoring, AI-driven controls, building simulations, and professional services to optimise energy usage, meet ESG standards, and enhance occupant experiences.
Grapperhaus elaborated further: “Many competitors rely on basic energy monitoring, often derived from energy bills, or provide advisory tools that require extensive manual intervention. Next Sense sets itself apart with a Machine Learning platform powered by a Building Physics model. This model integrates science-based rules and detailed building data to deliver vendor-agnostic, automated optimization. Our solution enables seamless energy efficiency improvements across large property portfolios without the limitations of traditional approaches.”
As a certified B Corporation, Next Sense helps clients decarbonise buildings throughout their lifecycle. It uses simulations during pre-construction and redevelopment while optimising operations through AI-powered monitoring and control solutions. Regular white-glove customer success sessions ensure clients meet EU CSRD sustainability regulations while achieving Paris Agreement energy goals.
The platform delivers remarkable results, cutting total building primary energy consumption by up to 40% per project, demonstrating its ability to drive real change in real estate while providing clear financial and environmental benefits. With a portfolio of over 150 projects for clients including CHANEL, AXA IM, Microsoft, and MERLIN Properties, the company is leading building decarbonisation efforts across Europe and beyond.
Investors see a potential in real estate decarbonisation
When paired with strategic planning, advanced technologies can significantly reduce carbon footprints while boosting financial performance. The intersection of technology, regulations, and market conditions makes decarbonisation feasible and urgent for sustainable urban development. This presents a compelling investment opportunity for those who recognise the potential of the real estate sector in reaching net zero targets.
Lodewijk Meens, senior portfolio manager at ABP Netherlands Energy Transition and Biodiversity Fund: “Next Sense’s smart software brings buildings to life to innovatively control and optimise all systems in a building, creating significant positive environmental impacts.”
Tomer Strikovsky, Partner, ETF Partners, commented: “The built environment represents one of our biggest challenges in reaching net zero targets. Next Sense’s platform stands out for its proven ability to deliver measurable energy reductions at scale. With over 150 successful deployments showing consistent 20-30% energy savings, they’ve demonstrated that smart building technology can drive both environmental impact and commercial returns.”
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