Budderfly Secures $55 Million in Funding to Fuel Rapid Expansion of Successful Energy Efficiency as a Service Offering
New investment led by Balance Point Capital brings total Budderfly funding to $77 million with investments from Edison Partners, Connecticut Innovations and company founder
Budderfly, a leading pioneer in the Energy Efficiency as a Service market, today announced new $55 million in growth equity and project debt funding led by Balance Point Capital with participation by Connecticut Innovations. This funding, together with the previous $22 million funded over the past 24 months by Edison Partners, founder and CEO Al Subbloie, Budderfly senior management, the State of Connecticut through the Department of Economic & Community Development, and others, will be used to scale customer project installations, accelerate Budderfly's go-to-market efforts and expand product growth. Combined with expected vendor partner financing, Budderfly is now fully positioned to implement its industry-leading plan to manage over $3 billion in customer energy spending over the next 10 years.
Budderfly brings an innovative approach to the emerging Energy Efficiency as a Service market, with advanced software, patented energy Internet of Things (IoT) measurement and control devices and numerous energy-saving facility components and upgrades. Budderfly's unique business model delivers an energy management solution that provides significant energy savings at no cost to the customer. With nearly 1,000 locations across North America contracted to date, Budderfly has the scale and experience to serve all types of facilities from office buildings, retail stores and restaurants to schools, recreational buildings, health-care facilities and beyond.
Studies show that over 30 percent of energy used in commercial buildings, or nearly $60 billion annually, is wasted because necessary investments are not being made in energy efficiency measures. Budderfly's business model removes the major impediments to taking action, including a lack of investment capital and confusion over best practices due to the complexity of the options.
"Successful energy management is a real problem for most organizations due to the complex and fragmented nature of the energy space. It is a daunting challenge for companies to navigate and implement energy efficiency measures with the many and complex energy savings solutions being offered by hundreds of vendors. We make it simple," said Budderfly CEO Al Subbloie. "Our service combines accurate point of consumption measurement and controls with our energy efficient infrastructure upgrades, maintenance, expertise and monitoring to provide a one-stop, single vendor, energy management solution that delivers real savings to our customers."
Balance Point Capital Managing Partner Seth W. Alvord added, "Budderfly has taken a leadership role in the emerging energy efficiency market, leveraging its strength in software automation and IoT energy devices along with a proven management team and distinctive business model to deliver a leading-edge solution that is a great new option for many businesses and building owners. We are very excited to partner with the Budderfly team and look forward to supporting the company's growth as it continues its success in the high-potential energy management space."
"Energy management is complex and fragmented, and Budderfly solves companies' energy challenges and achieves tangible cost savings. Budderfly has done a terrific job bringing their holistic energy management solution to market and accelerating growth. Their leadership and industry-changing technology make them a great fit in our enterprise software-as-a-service portfolio," said Gary Golding, general partner at Edison Partners who is a Budderfly board member.
"In today's ever-evolving energy environment, companies need a new approach to reduce their energy consumption to gain competitive advantage and realize ecological benefits," noted Budderfly's Subbloie. "Budderfly continues to deliver exciting results, empowering our customers to achieve real success in an era of heightened global emphasis on 'Green' policies to reduce climate change while simultaneously eliminating the significant expense of wasted energy consumption - all at no cost to them."
Shasta Partners LLC acted as exclusive financial advisor to Budderfly on the transaction.