Quilt, the Redwood City, Calif.-based startup that creates sleek, customizable heat pumps, raised $20 million in a Series B round that recently closed. The company previously raised a $33 million Series A, announced in April 2024.
The new round was led by Energy Impact Partners and Galvanize with participation from Alumni Ventures, Gradient Ventures, Incite Ventures and Lowercarbon Capital. Galvanize’s Veery Maxwell will join the board, as will former Nest CFO Tom vonReichbauer. (The latter should come as no surprise given that many Quilters worked at Nest.)
The new funding will be used to expand the company’s footprint. Quilt has installed nearly 1,000 units in 16 U.S. states and five Canadian provinces, co-founder and CEO Paul Lambert said in a note on the company’s website.
Quilt is a rare startup challenging established incumbents in the heat pump market. To turn them around, the company took a software- and design-first approach. One example is an over-the-air update the company made to already installed heat pumps; new software and firmware have improved the performance of existing units by more than 20%.
