Quilt, the Redwood City, California-based startup revolutionizing home climate control with its sleek, customizable heat pumps, has announced the close of a $20 million Series B funding round. This latest investment follows a $33 million Series A round, which the company revealed in April 2024, bringing its total funding to date to $53 million.
The Series B round was co-led by Energy Impact Partners and Galvanize, with additional participation from Alumni Ventures, Gradient Ventures, Incite Ventures, and Lowercarbon Capital. As part of the investment, Veery Maxwell from Galvanize will join Quilt's board of directors, alongside Tom vonReichbauer, former CFO of smart home pioneer Nest. This board addition highlights a notable connection, as many Quilt employees previously honed their skills at Nest.
Expanding North American Footprint
The newly secured capital is crucial for Quilt's ambitious expansion plans. Co-founder and CEO Paul Lambert stated in a company note that the funding will be directed towards broadening the company's operational footprint. To date, Quilt has successfully installed nearly 1,000 units across 16 U.S. states and five Canadian provinces, demonstrating strong initial market penetration.
Lambert emphasized the company's commitment to scaling its sales and installation capabilities to meet growing demand for energy-efficient home heating and cooling solutions. The expansion aims to bring Quilt's innovative heat pump technology to more homes, accelerating the transition away from traditional fossil fuel-based systems.
Innovation Challenging Incumbents
Quilt has distinguished itself as a rare startup actively challenging entrenched players in the competitive heat pump market. Its strategy hinges on a software- and design-first approach, prioritizing user experience and continuous improvement.
A prime example of this innovation is an over-the-air (OTA) update the company pushed to already installed heat pumps. This software and firmware upgrade significantly improved the performance of existing units by more than 20%, showcasing Quilt's ability to enhance product capabilities post-installation and deliver ongoing value to its customers. This approach not only boosts efficiency but also positions Quilt as a leader in smart, adaptable home climate technology.
