Berlin, Germany — December 14th, 2023: ecoworks, the global leader for climate-neutral renovation, has closed a €40 million funding round led by World Fund, with participation from Haniel, KOMPAS VC, and ISAI. The high level of investor interest was driven by the rapidly rising demand for this market in Europe, spanning the residential, industrial and commercial sectors.
Daria Saharova, Managing Partner at World Fund, said: “Almost 75% of buildings in Europe are considered energy inefficient. Currently, the renovation rate is less than 1%. ecoworks is a retrofitting tech leader that is primed to benefit from regulatory demands for renovation of existing buildings, and increasing capital for reducing carbon emissions in the sector”.
World Fund only invests in startups with the greatest climate performance potential, and the decision to lead the funding round was based upon the carbon savings that can be achieved through retrofitting. ecoworks targets to reduce GHG emissions by over 1 gigaton CO2 by 2045.
Around 50 Percent of the 315 million residential units in Europe have energy performance ratings of E or worse. Retrofitting these buildings requires multi-trillion investments in the EU alone until 2030. Homes with a low performance will be particularly burdened by high energy prices, and more stringent global regulation of built environment emissions. They also increasingly lose value and become therefore stranded assets.
ecoworks aims to reduce built environment CO2 emissions by offering renovation and retrofitting with an energy efficient building skin. The Berlin startup is able to retrofit apartment blocks and increase their value by 100 percent and more. ecoworks' facade elements are already equipped with integrated windows, insulation and building services. The company has been implementing its innovative solutions into an array of buildings in Germany, continually developing its product range.
Philipp Göhre, Growth Partner at Haniel, said: “As a pioneer and market leader in the field of climate-friendly serial renovation, ecoworks fits perfectly into Haniel's mission statement "enkelfähig”, under which we build sustainable and successful business models. We are delighted to be part of ecoworks' journey and to support Emanuel Heisenberg's team in their goal to reduce greenhouse gas emissions by a total of more than 1 gigaton of CO₂ by 2045".
Andreas Winter-Extra, Partner at KOMPAS VC, said: "Our investment in ecoworks reflects our unwavering commitment to creating a sustainable, efficient and resilient built environment. Currently, Europe faces the challenge of an aging building stock ill-equipped to cope with the rapidly changing climate. ecoworks is uniquely placed to meet the growing demand for climate-neutral refurbishments through its transformative technology — and is spearheading efforts to facilitate sustainable and cost-effective renovation of buildings across Europe. By investing in advanced technologies and embracing sustainable practices, we firmly believe that we can address the challenges of climate change and an aging housing stock head-on.”
Emanuel Heisenberg, founder of ecoworks, said: "The financing round was almost three times oversubscribed. This shows the enormous interest in solutions for the upcoming European renovation wave. With our order book and increasing margins, ecoworks has the potential to become a European tech leader in the construction market.”
World Fund is the leading Europe-focused climate venture capital fund established by Daria Saharova, Danijel Višević, Craig Douglas, and Tim Schumacher. From energy, food, agriculture, and land use, to building materials, manufacturing and transport, World Fund is investing in European tech with significant climate performance potential (CPP). The investment team comprises engineers, physicists, chemists, biologists, early and growth stage investors. World Fund is backing those entrepreneurs who are building tech for a regenerative world.
ecoworks offers modular, climate-neutral renovation solutions for the housing industry. The company plans, designs, and installs prefabricated facade and roof elements to retrofit apartment buildings to a NetZero standard within a few weeks. The Berlin-based company ecoworks developed the technology in Germany and is currently bringing it to the mass market with several projects. The company is considered one of the most innovative providers of Climate Tech in the building sector worldwide.
Franz Haniel & Cie. GmbH manages a portfolio of independent companies with the goal to create value for generations as Europe's leading purpose-driven investor. To this end, Haniel aligns its portfolio strictly "enkelfähig,” that means: along clear sustainability and performance criteria. The companies are managed based on a common operating system – the Haniel Operating Way (HOW) – and share a performance-oriented culture. Currently, the Haniel portfolio comprises ten investments: BauWatch, BekaertDeslee, CWS Cleanrooms, CWS Fire Safety, CWS Hygiene, CWS Workwear, Emma – The Sleep Company, das kinderzimmer, ROVEMA and TAKKT. In addition, Haniel manages financial stakes in CECONOMY and Optimar and minority stakes in high-growth start-ups. With a focus on business services as well as cleantech solutions, we invest in market-leading established and emerging companies. In 2022, the Haniel Group employed 21,500 people and generated sales of EUR 4.2 billion. The company is 100 percent family-owned and has been based in Duisburg since its foundation in 1756.
KOMPAS is an early-stage venture capital firm with offices in Amsterdam, Berlin, Copenhagen, and Tel Aviv. The firm funds breakthrough innovations that accelerate the digital transformation and decarbonization of the building and manufacturing industries. KOMPAS invests €1.0 – 5.0 million in Seed and Series A rounds with continued support throughout the company’s entire lifecycle. KOMPAS partners with exceptional founders who disrupt the way buildings are designed, built and managed. We strive to eliminate emissions from building and manufacturing activity, reduce energy consumption, promote sustainable building materials, eliminate waste and support a circular economy. The firm also invests in digital technology and automation to make industrial processes from procurement to manufacturing more efficient. We operate with purpose whilst delivering strong financial returns to our investors.
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