Heat pump startup Quilt is raising a $20 million Series B to expand sales

Quilt, the Redwood City, Calif.-based startup that creates stylish, customizable heat pumps, has raised $20 million in a Series B round that recently closed. The company previously raised a $33 million Series A, which it announced in April 2024.

The new round was led by Energy Impact Partner and Galvanize, with participation from Alumni Ventures, Gradient Ventures, Incite Ventures, and Lowercarbon Capital. Galvanize’s Veery Maxwell will join the board, as will former Nest CFO Tom vonReichbauer. (The latter shouldn’t be surprising given that many Quilters used to work at the Nest.)

The new funding will go towards expanding the company’s scope. Quilt has installed nearly 1,000 units in 16 U.S. states and five Canadian provinces, said Paul Lambert, co-founder and CEO. Note Posted on the company’s website.

Quilt was a rare startup challenging established companies in the heat pump market. To topple them, the company took a software and design-first approach. One example of this is the over-the-air retrofit the company pushed for heat pumps that were already installed; The new firmware has improved the performance of existing units by more than 20%.