German climate control startup tado° closed a $23M Series C round of funding the company plans to use for expansion into American markets. The startup’s flagship product is a “smart” thermostat and associated suite of mobile applications.
The Internet of Things (IOT) company is prioritizing the US for expansion. It has listed its products with retailers including Amazon, Best Buy and The Home Depot and partnered with connected home initiatives, such as AT&T Digital Life. Co-founder and CEO Christian Deilmann forecasts a total market size of 32 million smart thermostats worldwide by 2020.
San Francisco was a priority due to the presence of a high density of apartments and remote control AC units, Christian tells Bisnow. "Through partnerships with major retailers and service providers, the people of San Francisco and the US will be able to feel the benefits of the tado° Smart AC Control for more savings and increased comfort," he added.
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Tado° seeks to compete with Silicon Valley’s Nest (owned by Google/Alphabet). The company says its thermostat brings HVAC systems online and turns “any smartphone into a geo-aware remote control.” It is focused on the residential and small business segments.
The news comes in light of Nest’s many recent stumbles and weaker than expected sales. Difficulties at Nest underscore the challenges companies like tado° can face. Unresolved issues include ownership rights of user data collected by a smart home.
Inven Capital, the venture division of multinational energy conglomerate Čez Group, provided the funds to tado°, which raised $57M in total funding.
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