Climate Investment leads growth investment in Aeroseal, a leading climate tech innovator of net-zero commercial and residential buildings solutions

23 February 2023

Climate Investment

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  • The investment, part of Aeroseal’s Series B fundraising round, will help Aeroseal accelerate the scaling up of its technologies
  • Aeroseal’s simple and effective industry-leading products can reduce energy consumption in residential and commercial buildings by 30% on average by seeking and safely sealing air leaks
  • Aeroseal plans expansion beyond buildings into gas pipelines and into new geographic markets

OGCI Climate Investment (“CI”), a specialist investor focused on enabling capital-efficient decarbonization, has invested in Aeroseal LLC (“Aeroseal”), a software-enabled energy efficiency solution provider with patented sealing technologies for commercial and residential buildings. CI led the investment in Aeroseal’s $30 million first close Series B fundraising round.

Aeroseal’s products can reduce energy consumption of a building by 30% on average, cutting carbon dioxide (CO2) emissions from and improving the efficiency of buildings. Buildings are responsible for 17% of all greenhouse gas (GHG) emissions[1], and air leakage is a serious issue for building operations, which Aeroseal’s leak mitigation solutions help address.

The company’s products are gaining significant traction in U.S. residential homes and commercial buildings. The technologies – HomeSeal Connect for duct sealing and AeroBarrier Connect for building envelope sealing – blow a fog of sealant particles into pressurized spaces, with software tracking the entire process. The polymer particles safely seal leaks as big as half an inch (1.2 cm) and as small as a human hair.

Its products have been deployed in over 260,000 buildings to date, across all 50 states in the U.S. and a further 29 countries around the world. CI believes the current addressable market for Aeroseal within the US alone is north of $270 billion across residential and commercial buildings.

The Series B capital round will help Aeroseal accelerate the scaling up of its new and existing technologies. This includes a technology for the gas pipeline industry, which faces similar leakage issues to building operations. Aeroseal also intends to expand its operations globally. It currently operates largely in North America, but sees significant opportunities in the U.K. and the rest of Europe, owing to strong regulatory and policy commitments to reduce GHG emissions.

Felicity O’Kelly, Senior Investment Associate at CI, said: “Aeroseal is a great example of a simple and effective product innovation that can be easily deployed by customers and yield immediate efficiency returns.”

Marc van den Berg, Managing Director, Ventures at CI said: “We’ve been following Aeroseal’s progress and believe now is the time to support the company to further commercialize and bring real-term impact as a material contributor to emissions reduction, in line with CI’s strategic mission.”

Amit Gupta, CEO of Aeroseal said: “We are in a race against time in our collective battle against climate change. This funding will allow us to accelerate our focus on making net zero buildings standard. From ongoing engineering efforts to make our technologies faster and easier to deploy, to elevating awareness through sales and marketing focus, to finally explore new products and markets – the funding will help ensure we reach our goal of shrinking carbon emissions by 1 gigaton annually.”

In January 2023, Cleantech Group named Aeroseal as a Rising Star Company of the Year and part of the Global Cleantech 100. Bill Gates has identified Aeroseal as a key player in combating climate change in new and existing buildings.

[1] IPCC Climate Change 2022: Impacts, Adaptation, and Vulnerability. Contribution of Working Group II to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change

About OGCI Climate Investment

Climate Investment (CI) is an independently managed private markets investor focused on capital-efficient industrial decarbonization. The firm seeks to accelerate greenhouse gas (GHG) reduction at scale by investing and collaborating widely to maximize the global implementation and impact of low-carbon solutions. CI provides early stage to growth capital and supports its portfolio across its business lifecycle, ensuring that the companies deliver both GHG impact and financial success.

The firm has made over 30 investments across a range of GHG-intensive sectors; energy, industry, built environments/buildings and transportation. CI’s portfolio companies offer solutions that avoid, reduce, recycle or store methane or carbon dioxide. The firm sets 2030 and 2050 GHG reduction targets against which it reports annually, and publicly. The firm has also been instrumental in developing open-source GHG emissions impact estimation methodology to encourage adoption of a common measurement framework for investors.

Climate Investment is an Oil & Gas Climate Initiative company whose 12 member companies have invested in the firm’s funds.

About Aeroseal

Aeroseal’s mission is to shrink carbon emissions with our breakthrough technologies by 1 gigaton of CO2 annually. The company’s over 200 employees in Dayton, Ohio serve contractors, builders, and building owners who are sealing ducts and walls around the globe in everything from homes, hospitals, and schools, to government facilities, hotels, and offices.

Since 2010, Aeroseal has sealed more than 260,000 buildings around the world, saving home and building owners billions of dollars in energy savings.