Climate Insider Brief:
- Berlin-based climate startup Ecoworks has successfully secured a €40 million investment in its latest financing round.
- The lead investor in this funding round is the World Fund, emphasising strong confidence in Ecoworks’ mission. Additional support comes from notable investors, including KOMPAS VC, Haniel, and ISAI.
- With the new investment, Ecoworks plans to accelerate the development of its disruptive technology, focusing on smart retrofitting using digital technologies, AI, and industrial robots.
Ecoworks Secures €40 Million Investment to Transform Europe’s Buildings and Combat Climate Change
Berlin-based climate startup Ecoworks has announced a successful funding round, securing an investment of €40 million. The lead investor in this financing round is the World Fund, showing strong confidence in Ecoworks’ innovative approach to addressing one of Europe’s critical issues – energy inefficient buildings.
Around 75% of buildings in Europe are considered energy inefficient, with nearly half of the 315 million residential units in the region having energy performance ratings of E or worse. This poses a significant challenge as Europe aims to achieve net-zero emissions by 2050. Ecoworks is on a mission to revolutionise the housing market through serial renovation, playing a crucial role in the race against time to decarbonize our built environment.
The Urgency of Retrofitting
Ecoworks recognizes the urgency of the situation, emphasising that traditional players in the construction sector are unlikely to bring about the necessary transformations at the required pace. Emanuel Heisenberg, CEO and co-founder of Ecoworks, points out the lack of investment in research and development by housing and construction companies. He stresses that the renovation sector itself will not generate solutions organically, making it imperative for startups like Ecoworks to step in.
The startup’s focus is on automating and bringing construction processes into factories where industrial robots can efficiently work, reducing costs and creating affordable housing through renovation. Ecoworks is pushing for a cultural shift in the construction sector, akin to the transformation needed in the energy sector to address climate change.
Smart Retrofitting for a NetZero Future
Ecoworks’ solution centres around smart retrofitting, starting with residential apartment blocks in its home market. The company uses high-tech tools, AI, and industrial robots to install prefabricated insulation panels on the exteriors of existing buildings, reducing heat loss and integrating renewable energy generation.
The prefabricated cladding, made from bio-based materials like reclaimed wood and wooden cellulose, allows for quick installation without displacing residents. Ecoworks’ innovative approach claims to reduce primary energy demand by 85% to 90%, providing clean heating and hot water through solar PV cells and heat pumps.
Ecoworks leverages artificial intelligence, 3D scanning, and digital design to automate and optimise its processes. AI helps select suitable projects, optimise planning, and streamline the retrofitting process, reducing the time from contract to commissioning. The startup aims to scale its operations and offer its software and methods beyond Germany’s borders.
Funding for Future Growth
The recent €40 million investment, led by the World Fund, will be instrumental in Ecoworks’ growth. The funds will be directed towards updating the software platform, launching a new customer interface, developing a cost prediction tool, and enhancing prefabricated facades to further reduce on-site installations. Ecoworks also plans to expand its team to meet the goal of reaching €1 billion in revenue by 2027.
As Ecoworks continues to lead the way in climate-friendly serial renovation, the investment underscores the commitment of investors like Haniel, Kompas VC, and ISAI to support the startup’s vision of reducing greenhouse gas emissions and creating a sustainable and successful business model. The startup’s focus on smart retrofitting aligns with the broader goal of achieving a NetZero future for the European market, demonstrating the critical role of innovation in addressing the challenges of climate change.
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Featured Image: Credit: Ecoworks
