Logical Buildings Closes $3.5 Million Series C-1 Offering as SmartKit™ AI Smart Building Software Platform Expands Nationally, Achieving 35% Growth in Adoption During Q4 2018
Logical Buildings, which creates networks of commercial buildings and turns them into virtual power plants, raised $3.5 Million to expand their AI Smart Building Software
Logical Buildings, a software company that operates at the cutting edge of smart building and grid-edge energy management, has completed a $3.5 million Series C-1 offering as it continues to invest in further developing its SmartKit AI comprehensive building energy management platform, and expanding its adoption to new geographies.
The company's SmartKit AI product growth is fueled by the convergence of energy grid decentralization, building systems' digital transformation, and IoT device consumerization. The SmartKit AI mobile cloud platform synthesizes real-time smart meter utility and grid data with building mechanical and IoT sensor data to optimize building performance and improve property management decisions. The company's interoperable platform integrates with existing BMS systems, next-generation IoT smart devices, and voice activation services to augment onsite property management capabilities to enhance tenant comfort and property resiliency.
"The SmartKit AI platform is increasing property valuations by providing our expanding user base of property owners with new sources of revenue, cost reduction, and improved work-flow management tools. Linking real-time data insights with actionable digital protocols to generate a net increase in NOI is a game-changing capability we provide our clients," said Jeff Hendler, CEO of Logical Buildings.
The new funding will also be used to expand partnerships with utilities, IoT platforms and telecommunications companies. Logical Buildings was recently selected as an innovation technology finalist to present SmartKit AI to a panel of utilities at DistribuTECH's Initiate! program, which is designed to help utilities adopt innovative technologies.
"The opportunity for utilities is massive. As millions of residential and commercial consumers move to time-of-use energy rates made possible by smart meter deployment over the next few years, the need for engaging, consumer-friendly energy management platforms that incorporate non-utility, IoT data is greater than ever. At the same time, with a growing share of energy generation assets on U.S. grids being intermittent -- including wind and solar -- energy demand management is an increasingly crucial tool for utility operators to balance local distribution networks," said David Klatt, Logical Building's senior vice president of operations.
For example, Con Edison executed its first ever Gas Demand Response program on January 21, 2019, as temperatures plummeted to near zero degrees and demand for gas soared on Con Edison's distribution system. Logical Buildings is one of only four companies qualified to participate in the program and provide natural gas demand management in ConEd's service area.
Logical Buildings' C-1 round was oversubscribed on the back of recent momentum, with 10 new clients adopting the platform and existing clients expanding services, comprising a total of 60 new SmartKit AI contracts and deployments in the fourth quarter of 2018—a 35% increase.
New clients include companies such as Rose Associates, Stonehenge, Bozzuto, Dermot, and L+M Development Partners. Expanding clients include AvalonBay, Invesco and Greystar.
Participation in these types of high-value energy management events is easier than ever with the proliferation of smart building devices, such as wi-fi thermostats. SmartKit AI integrates into popular wi-fi thermostats, such as EcoBee, and uses predictive analytics to schedule thermostat setpoints that maximize comfort and energy savings, including revenue generation through Automated Demand Response. The company announced new product features at CES earlier this month that expand the platform's interoperability with smart devices and voice activation services.
"Our software development team strives to continuously improve client engagement and expand the accessibility of our user interface. We now reach beyond the desktop and mobile device experience. SmartKit AI enables buildings to talk to our clients with our integration of Alexa voice activation. We are empowering property management to literally communicate with their properties in the most innovative and valuable ways imaginable." Said Hendler.
Logical Buildings' goals for 2019 call for continued growth within the company's existing Northeast and West Coast markets, as well as expansion to Texas, Illinois, Florida, and Canadian deregulated markets such as Ontario.
About Logical Buildings
Logical Buildings is a smart building technology software developer, IoT and DER systems integrator, behavior management, and smart building services provider. Integration of Logical Buildings' products and services in large multifamily and commercial properties materially reduces operating expenses, generates revenue from existing mechanical equipment, enables Wi-Fi connectivity, and improves building operations/fault detection/resiliency. Our clients are market leaders and are integrating our Smart Building AI Platform services and technologies - increasing net NOI and NAV property by property. Built by energy and telecommunication systems engineers and our shareholders - owners and developers of more than $10 billion of multifamily and mixed-use properties.Logical Buildings (formerly Energy Technology Savings, Inc. or ETS) is committed to growing your building's revenue while reducing its energy and operating costs, and enhancing tenant lifestyle. For more information, visit www.logicalbuildings.com.