We are excited to announce our recent investment in tado°, a Munich, Germany-based intelligent home climate company that aims to make energy efficiency the obvious choice for its customers.
Global energy consumption is projected to increase by nearly 50 percent between 2020 and 2050, driven by growing populations and advancing economies. Almost 25 percent of the energy produced worldwide is used to heat and cool homes and buildings. In European households, heating and hot water services account for 79 percent of total energy use. The events of the last few years have also given consumers another reason to reduce household energy use: cost. Between December 2020 and December 2021, the import price for energy in the euro area more than doubled.
For these reasons, reducing home and building energy use has become a priority for policymakers. According to a plan published by the IEA and European Commission households can reduce their energy use and save money, simply by turning down the thermostat by 1°C and saving up to 7 percent of a household’s energy used for heating. Smart home energy systems like tado°, which automatically adjust heating and cooling temperature settings are growing in popularity to take advantage of these energy-saving opportunities. In contrast to energy-efficient renovation measures, intelligent heating controls typically do not require a high initial investment and generally pay for themselves over time in reduced energy bills. Because of the low barrier to adoption and substantial benefits, the EU is currently targeting a deployment of 1.5 million smart thermostats in European households annually to encourage further energy independence, adding to the more than 20 million installed base.
This push for energy efficiency has paved the way for tado°, as its products are compatible with almost any kind of heating or cooling hardware system. tado° helps customers optimize energy usage by installing built-for-purpose hardware and software energy management solutions in homes and buildings. Through an easy-to-use platform, customers can remotely control temperatures, set schedules, and receive reports and tips for improving energy efficiency.
Independent research estimates that tado° products can help customers save up to 28 percent on their heating costs, and on average their customers save 22 percent. The company is also pursuing a variety of services beyond smart thermostats, offering customers additional pathways to utilize affordable green energy. tado°’s value proposition has earned the company over 3 million sold smart thermostats across 20 countries in Europe. In 2022 alone, tado° doubled its smart thermostat and service sales, and the company continues to innovate its platform to provide additional services and build stronger brand connections.
S2G Ventures participated in tado°’s 2023 investment round with multiple investors, including Trill Impact Ventures, Bayern Capital, and Kiko Ventures, as well as the existing shareholders in the company. The financing will be used to support the deployment of new hardware and software solutions, along with tado°’s recently formed energy management business to allow the company to evolve into a full-service, integrated home energy company. We look forward to working with the entire tado° team as they continue to empower smart home climate management, drive home energy savings for customers, and help make energy wastage a thing of the past.
