Smart HVAC Startup BrainBox AI Raises $8.6M in New Round

BrainBox AI uses its tech to manage self-operating HVAC systems for buildings and says it can reduce energy costs by up to 25%.

An AI company aimed at decreasing heating, ventilation and air conditioning (HVAC) costs for buildings announced a $8.6 million fundraising round to expand its reach, as building managers seek to cut costs during the economic downturn from the COVID-19 pandemic.

BrainBox AI uses its tech to manage self-operating HVAC systems for buildings and says it can reduce energy costs by up to 25%, a potential selling point as real estate owners begin to experience the economic fallout resulting from the pandemic. The AI can also reduce carbon footprints by 20 to 40%, and increase comfort for occupants by 60%.

The Montreal start-up said it received new investments from both domestic and international investors, some of which have already provided capital for the company. Esplanade Ventures is the lead investor, and Desjardins Capital also invested.

Sam Ramadori, BrainBox AI’s chief business development officer, said the start-up is “driven by the opportunity to tackle climate change, one of the world’s critical challenges, and are excited to be working with investors who share the same vision.”

Founded in 2017, BrainBox AI came to market in May 2019 and has since installed its technology in 15 million square feet of commercial properties. The company has a presence in 15 cities on three continents, and plans to use the new investments to expand in both North American markets and overseas.

The start-up already services real estate owners in a number of sectors, including commercial retail, office buildings, airports, hotels, multi-residential buildings and long-term care facilities.