KODE Labs Raises $30M In Series B To Enrich Its Unified Building Operations Platform

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KODE Labs Raises $30M In Series B To Enrich Its Unified Building Operations Platform

KODE Labs announced in April 2024 it had successfully raised $30 million in a Series B funding round led by Maverix Private Equity with support from TELUS Ventures and I Squared Capital (the latter of which led the firm’s 2022 $8M Series A). The Detroit-based vendor – known for its open building platform KODE OS – plans to utilize this latest capital influx to develop new application integrations for its app marketplace, while also enriching its use of AI for advanced autonomous building control.

KODE OS is featured in the Verdantix Buyer’s Guide for energy management software thanks to its functionality spanning all six defined categories within the EMS umbrella. The solution’s data aggregation and standardization functionality allow for the consolidation of disparate building systems and applications into one unified platform. The latest product update – KODE OS 2.0, released in January 2024 – brings cross-module insights to users, allowing for the generation of contextualized metrics, such as energy consumption per occupant, to drive informed decision-making.

This funding news signals a rejuvenation in a rather stagnant venture capital market in the building software space, especially when taken alongside GridBeyond’s announcement it has successfully closed a €52 million Series C funding round. The Dublin-based distributed energy resource management system (DERMS) provider revealed the funding will be utilized to support an ambitious international expansion with a US focus, building on the firm’s 2023 acquisition of Veritone Business Energy. At the same time, GridBeyond will also use the funding to enrich its solution functionality to maximize the potential of customers’ connected energy storage assets. Virtual power plant (VPP) and DERMS solutions are set to become more desirable, with forecasts predicting it may grow at a CAGR of 19.5% from a 2023 value of $315 million to $1.1 billion by 2030. This growth is driven by businesses looking to adopt on-site energy production and storage assets to boost resilience and guarantee renewable energy provision as part of their decarbonization agendas.

It is exciting to see a return of market activity across innovative solutions in the energy management and building optimization spheres and – hopefully – these events signal a beginning to the end of the market downturn we have witnessed in face of current global economic events.

For further Verdantix coverage on investment activity in the energy management space, please see Verdantix Market Insight: Financial Flows And M&As In The Energy Management Software Space.

To explore further Verdantix coverage of how energy priorities will shift in the coming years as decarbonized energy is realized, please see Verdantix Strategic Focus: Building Decarbonization And Energy Management Will Decouple And Transform Over 30 Years.

Harry Wilson

Senior Analyst

Harry is a Senior Analyst in the Verdantix Real Estate & Built Environment practice. Harry's research and advisory expertise centres on energy management; he leads Verdantix coverage of building energy management software, building electrification, and microgrids and energy resilience technologies. Prior to joining Verdantix, Harry worked as a Mechanical Engineer at engineering consultancy Arup, where he specialized in the design of net zero new-build and retrofit facilities across the commercial, science and technology sectors. He holds an M.Eng in Mechanical Engineering from the University of Nottingham.