Heat Pump Startup Quilt Raises $20M Series B To Expand Sales

Heat Pump Startup Quilt Raises $20M to Expand Sales

Quilt, the California-based startup known for sleek, customizable heat pumps, has raised $20 million in a Series B funding round. This investment comes just months after the company announced its $33 million Series A in April 2024. With energy efficiency and smart home integration at its core, Quilt aims to transform the residential heating and cooling market across North America.

Credit: Quilt

The funding round was led by Energy Impact Partners and Galvanize, with participation from Alumni Ventures, Gradient Ventures, Incite Ventures, and Lowercarbon Capital. Industry veterans are joining Quilt’s board, including Veery Maxwell from Galvanize and former Nest CFO Tom vonReichbauer, reflecting the company’s growing influence in smart home technology.

Expanding Footprint Across North America

Quilt plans to use the new capital to expand its footprint in the U.S. and Canada. So far, the startup has installed nearly 1,000 heat pump units across 16 states and five Canadian provinces. CEO and co-founder Paul Lambert emphasized that the funding will help accelerate growth, streamline operations, and enhance the customer experience for homeowners seeking sustainable, energy-efficient heating solutions.

The heat pump market is traditionally dominated by large incumbents, but Quilt is challenging this status quo with a fresh approach. By focusing on software, design, and user experience, the startup aims to make its products not only more efficient but also more user-friendly and visually appealing than competitors’ offerings.

Software-First Innovation in Heating Technology

Quilt’s strategy centers on software-driven upgrades that improve performance over time. In a recent example, the company rolled out an over-the-air update to heat pumps already installed, boosting efficiency and functionality without requiring hardware replacements. This approach mirrors trends in the broader smart home market, where connected devices benefit from continuous improvement via updates.

Beyond efficiency, Quilt’s software-first model allows customers to personalize their heat pumps. Homeowners can control settings remotely, track energy use, and receive maintenance alerts through the Quilt app. This combination of design and technology has helped the startup gain early traction among environmentally conscious consumers looking for modern heating solutions.

A Design-Focused Approach Sets Quilt Apart

Unlike traditional heat pumps, which often prioritize function over aesthetics, Quilt has emphasized sleek, modular designs that blend seamlessly with home interiors. Many of the company’s early employees come from Nest, which explains the strong design and user-experience DNA embedded in Quilt’s products. The startup’s focus on form and function positions it as a strong competitor in a market that has historically been overlooked for innovation.

Industry analysts note that Quilt’s entry into the market could drive broader adoption of heat pumps in regions where older, less efficient systems are still common. As homeowners face rising energy costs and stricter environmental regulations, products that combine efficiency, style, and smart controls are likely to see increasing demand.

Investor Confidence Reflects Market Potential

Investors are betting on Quilt’s potential to scale rapidly. Energy Impact Partners, known for backing companies driving sustainable energy solutions, led the Series B round. Galvanize, a venture firm focused on high-growth technology companies, also participated. With the guidance of experienced board members, Quilt is poised to navigate the challenges of rapid expansion while maintaining product quality and innovation.

The Series B funding also signals confidence in Quilt’s ability to compete with established HVAC giants. By blending smart home technology with energy-efficient design, the company targets both environmentally conscious consumers and tech-savvy homeowners seeking smarter heating solutions.

Growth and Innovation

Quilt’s roadmap includes expanding distribution channels, enhancing its software ecosystem, and introducing new product lines tailored for different climates and home types. The company also plans to continue investing in customer support and service infrastructure, ensuring a seamless experience for buyers across North America.

For consumers, the rise of startups like Quilt means more choices in sustainable home heating. The combination of smart software, sleek design, and energy efficiency reflects a growing trend in home technology, where function and aesthetics go hand in hand.

With $20 million in fresh capital, Quilt is positioned to scale its operations, challenge entrenched incumbents, and accelerate the adoption of modern heat pumps across the continent. Homeowners and industry observers alike will be watching closely as this innovative startup continues to heat up the market.