Parity Inc. Announces $5.8M in Financing

Parity Inc., a Canadian proptech company that focuses on HVAC operational optimization for mid-rise and high-rise multifamily and hotels, announced $5.8 million (CAD $8 million) funding round.

The company looks to scale up its Canadian operations and further expand south through the United States. Parity, founded in 2016, has grown to 150 covered assets in Canada and now more than two dozen apartment buildings in New

Investors in the round include Wyse, RET Ventures, and others. The new investors join ArcTern Ventures.

“Parity’s technology platform is designed to transform the operations and energy management of mid-rise and high-rise apartment buildings and hotels with a capital-light, non-intrusive model that can be integrated into any property’s existing operating system,” the company’s press release stated. It then claimed that its software can optimize HVAC equipment performance and minimize energy waste. By doing so, it supposedly allows building owners and management to decrease capital investment costs and move toward ESG goals.

HVAC has become an important topic in CRE and is becoming as much about health as comfort, carbon footprint, and operating expenses.

For example, health concerns have cause “bifurcated fundamentals” in the office market, according to Marcus & Millichap. “Tenants are choosing between paying premiums for spaces with health-promoting qualities, or reducing expenses by moving into more cost-effective locales,” a July 2022 report from the firm said. “The result is stabilizing performance for space with post-pandemic upgrades, while older assets without modern features have struggled, especially in urban cores.”

Multiple vendors are addressing HVAC, particularly by using cloud-delivered software services, as Parity does. BrainBox AI claims that a building operator can gain up to 25% in total energy cost savings within three months, a 20% to 40% reduction in carbon footprint, and a 50% improvement in HVAC-related operations and maintenance costs. It uses Internet-connected control equipment, machine learning (where software uses data feedback to improve its operations), and third-party data like weather and occupancy.

Parity’s Pi Platform lets users view energy savings, CO₂ reductions, alerts, and building comfort, according to the firm’s claims. Remote monitoring occurs through an app. “Our alerts program includes colour-coded, tiered e-mails and text messages,” the firm states. “We will alert you when the issue was first discovered, to see if it’s persistent and may in fact be critical. In some cases we can rectify problems remotely, saving you and your property managers up to 1 – 2 maintenance calls every month.”