Weatherization combined with electrification is one of the best mechanisms for reducing a home’s carbon footprint, lowering ownership costs, and lowering total energy demand from the grid. Inflation reduction laws provide significant incentives for households to become more energy efficient. sealed An energy efficiency startup that works directly with contractors to provide data, planning and financing capabilities to optimize their operations to support the transition to a carbon-free future. Inflation reduction laws provide billions of dollars in incentives, but navigating the complexities of the rebate process is challenging and poses risks that discourage participation. The company recently launched Sealed Pro, which streamlines the application process for all eligible and applicable rebate opportunities. Sealed also provides proactive incentives to contractors before receiving rebate proceeds, freeing up contractors’ cash flow and resources to take on more projects. The decision to launch Sealed Pro marks a turning point for the company, moving from a B2C marketplace where homeowners can work with verified contractors to a B2B solution for contractors. With demand expected to increase and inflation reduction laws beginning to take effect, the company expects to be working with contractors across the country by the end of the year. Sealed currently operates in the New York metropolitan area and California.
Alley surveillance Meet Sealed CEO and Co-Founder Lauren Salt To learn more about the business, the company’s strategic plan, its latest financing and more…
Who were your investors and how much did you raise?
Sealed has raised $30 million in funding led by: Keyframe Capital and joined Cyrus Capital, CityRock, Fifth WallOthers.
This is a Series B expansion with participation from all existing investors.
Please tell us about the products or services Sealed offers.
Our new product for contractors is Sealed Pro. This is an easy-to-use platform that significantly reduces the administrative and financial burden of applying for and receiving incentives for government energy efficiency and electrification programs at the federal, state, and utility levels. We use a simple interface that allows contractors to get a rebate quote in under 3 minutes, and we provide incentives so contractors don’t have to wait up to a year to receive their rebate.
What prompted you to start Sealed?
Sealed remains committed to our business’ founding philosophy: our mission to stop energy waste in the home and provide electricity to every home. This transition will allow us to impact more homes faster and at a larger scale than the traditional model of working directly with homeowners.
How is Sealed different?
Sealed is the only product that combines the three elements needed to succeed in residential energy efficiency.
- Deep experience in residential energy efficiency – after 10 years, we know what it takes to get the job done and we understand our customers.
- Software Troubleshooting – Many rebate programs require applicants to perform burdensome manual data entry and other tasks. We work hard to automate the steps our software can handle to streamline and simplify the process.
- We take on the risk for contractors and homeowners by predicting energy savings. We’re not afraid to put our money where our mouth is. With a measured program, we pay our contractors upfront and receive compensation through the program. This ultimately helps get things moving along and gets energy-efficient projects up and running faster.
By combining our experience, software, attractive financing and energy saving forecasting capabilities, we are able to offer our customers very interesting products.
What market is Sealed targeting and how big is it?
We’ve now reached 4.5 million single-family homes and are poised to scale quickly as HOMES and IRAs begin to roll out.
Starting in New York and expanding into California counties, we expect Sealed Pro to be available in select states in the third quarter of 2024, with a national rollout completed by the end of 2024.
What is your business model?
Sealed makes money once the project is completed and energy is saved.
- Sealed pays contractors upfront, ensuring revenue and profitability from your project without risk. Contractors typically receive payment within two weeks of submitting work to Sealed.
- Sealed funds will be repaid by the program over time.
Contractors today are spending significant amounts of money to participate in rebate programs, both hard (maintenance, cash flow volatility, etc.) and soft (wasted time, etc.). Because of these costs, many contractors do not participate in rebate programs and are hesitant to take on the risks involved. Sealed Pro allows contractors to participate in these programs and provide more efficient options to their customers.
Contractors today are spending significant amounts of money to participate in rebate programs, both hard (maintenance, cash flow volatility, etc.) and soft (wasted time, etc.). Because of these costs, many contractors do not participate in rebate programs and are hesitant to take on the risks involved. Sealed Pro allows contractors to participate in these programs and provide more efficient options to their customers.
How was the funding process?
This funding round has been more difficult than most due to the ongoing economic downturn and the recent loss of confidence due to SVB’s collapse in 2023.
Sealed has been fortunate to have key existing investors who believe in our mission and support our decision to transition to an entirely new business model.
What are the biggest challenges you face while raising capital?
Because I had twins while I was raising them, it was difficult for me to juggle my personal life with the dedication and effort I always wanted to give to Shield.
Other challenges include uncertainty surrounding the rollout of the IRA and HOMES programs. Although we were well positioned to take advantage of the program when it launched, some investors were nervous about taking on the policy schedule risk. That’s why the success of the 3C-REN program in California is so important.
What is it about your business that causes your investors to write a check?
The success of our program in California validates what we are doing and the changes we have made. In just a few months, we submitted $1 million in rebates to contractors as part of 3C-REN. When the HOMES program launches this year, it will transform more homes in 2024 than it did in its first 10 years of operation. .
80% of the contractors we work with have not previously participated in this program, and we have received overwhelmingly positive feedback from all participants.
Ability to scale quickly. We have 10 years of experience in this field and are well connected in many states across the country and can easily implement our current model wherever the opportunity arises.
Ability to scale quickly. We have 10 years of experience in this field and are well connected in many states across the country and can easily implement our current model wherever the opportunity arises.
What milestones do you hope to achieve in the next six months?
We plan to expand to more states in the next six months.
What advice can you give to businesses in New York that are not seeing new capital flowing into their banks?
I have two pieces of advice. Keep trying and take the opportunity to ask yourself the hard questions. By the way, these are not easy things to do at the same time! Fundraising is longer and harder than it was a few years ago, but it can be done. Expect a lot of opposition before that happens. At the same time, difficult moments can force us to make difficult decisions. After building a successful D2C business, we closed it down to focus the entire company on Sealed Pro. It was not an easy decision, but it has put our business in a much stronger position.
Where do you see the company going in the short term?
Today, Sealed is excited to work with contractors, energy utility companies, and policymakers across the country to get more money into the hands of the people who power their homes.
What is your favorite restaurant in this city?
Whole foods.
