FirstFuel Raises $8.5M Series B Led by German Utilities Giant E.ON

Tuesday Dec 10, 2013 by Dennis Keohane - Staff Writer, VentureFizz

This morning, FirstFuel Software, a SaaS energy efficiency analytics company based in Lexington, announced an $8.5M Series B round of funding.

The new funding was led by E.ON SE, a German company that is one the world's largest "investor-owned" electric utility service providers (they also go by E·ON which may be familiar to some European soccer/football fans-the company has sponsored many teams and competitions). 

In addition to E.ON, previous investors Battery Ventures, Rockport Capital and Nth Power were involved in the Series B. The two prior rounds of funding for FirstFuel totals $12.4M.

FirstFuel, "the trusted source of energy use intelligence," is hoping to use the funding to build a bigger presence throughout North America. The company's Remote Building Analytics (RBA) platform leverages data analytics to make the energy management for commercial buildings more efficient. Since it was started in 2009, the company has focused on designing tools to be rapidly (and affordably) deployed across hundreds or thousands of commercial buildings.

The company is looking to scale its operations which have achieved success in a variety of building management sectors. As the press release announcing the deal stated, "The company has helped its utility and government customers deliver key energy efficiency services at 5-10x lower costs and faster speeds, scaled across thousands of buildings. FirstFuel customers utilize the platform’s fully-integrated remote energy analytics and services, including portfolio efficiency screening, customer engagement, energy audits and performance monitoring and verification."

As FirstFuel's CEO Swapnil Shah explained, “Standardized and reliable performance information has been critical to unlocking markets in almost every other sector, and the commercial energy sector should be no exception. While billions of dollars are being spent on commercial efficiency each year, the industry still lacks quality information about use, opportunity and performance."

"With this funding," he added, "we are positioned to aggressively pursue our growth goals and establish a new standard for energy information in buildings around the world.”

On his companies interest in FirstFuel, Urban Keussen, E.ON"s SVP for technology and innovation said, “E.ON’s investment in FirstFuel underlines the industry’s broader need to better support commercial customers in managing energy use. More and more, success in our energy business requires technology that drives greater customer engagement and value-added services at mass scale."

“FirstFuel has emerged as an industry-defining information source that enables utilities, governments and property owners to deliver meaningful and persistent demand-side management outcomes under cost and time constraints," Keussen added.

"We are very excited to work with FirstFuel as both an investor and a partner for the future.”

Dennis Keohane is a staff writer for VentureFizz. You can follow Dennis on Twitter (@DBKeohane) by clicking here.

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