Branch Energy, a Texas-based startup company that helps consumers reduce their energy bills and carbon footprint, announced it raised $4.5 million in seed business funding.
Installing New Smart Energy Devices and Helping With Bills
Comcast Ventures led the seed business funding round. Global Founders Capital, Inovia Capital, and individual business investor Assaf Wand, who is CEO of the home insurance startup company Hippo, also participated in the funding.
Branch Energy is co-founded by Alex Ince-Cushman (nuclear fusion researcher), Daniel MacDonald (business to consumer (B2C) entrepreneur), and senior energy industry executive Todd Burgess. The energy startup plans to use the raised capital to hire more people, as well as invest in the development of its data and analytics infrastructure.
“Climate change is a staggeringly large challenge and we’re building Branch Energy, from the ground up to be part of the solution. In particular, we think we can have the biggest impact by focusing on opportunities that reduce our customer’s energy bills and also help decarbonize society. Fortunately, this intersection is actually much, much larger than most people appreciate,” said Ince-Cushman, who acts as the CEO of the green energy startup company.
Branch helps consumers to realize that the deployment of green energy can actually save them money, time, and effort. According to the United States Environmental Protection Agency (EPA), electricity production accounts for a quarter of all US greenhouse gas emissions in 2019.
The startup company will use the funding to launch its services in those states where electricity consumers are allowed to choose their energy provider, the so-called “deregulated energy market.” The idea is to offer customers 100% green energy, help with bills, payment, and customer service.
Even more importantly, the startup company will advise customers and provide support to install smart energy devices, like smart thermostats, smart water heaters, solar arrays, etc. The first customers in Texas are expected this fall.
“Most people don’t wake up on a Sunday morning to do complex economic calculations on the payback period of a smart water heater, then go buy the device with cash, then coordinate with a plumber to install it, to eventually get savings in the future. It’s just too much friction for most people,” added MacDonald.
The green energy business believes that people are not interested in moving toward clean energy in large part due to the obstacles they face in getting devices installed. This is one of the key reasons why the installation rate of smart energy devices is “persistently low” in the US.
For this reason, the green energy startup company is planning to help its customers with device installation. It is developing a system based on the energy usage data, satellite imagery, and hyper-local weather forecasts to make financial projections for each device and each customer.
Ultimately, Branch Energy will help with the financing and installation of these devices. The ultimate goal is to make the green energy startup company an established and “compelling option for customers both financially and environmentally.”
Energy sustainability startup company Branch has raised $4.5 million in seed business funding to launch its services in Texas and across the US. Branch helps customers to finance and install energy-saving smart devices.