How Much Did Gradient Raise? Funding & Key Investors

What Is Gradient?

Gradient is a San Francisco-based clean energy hardware company that designs and manufactures innovative heat pump products for residential and commercial use. Founded in 2017 (formerly operating as Treau, Inc.), Gradient aims to decarbonize home heating and cooling with energy-efficient, all-electric HVAC solutions. Its flagship product is the Gradient All-Weather 120V Window Heat Pump, which provides year-round heating and cooling without requiring major installation work.

How Much Funding Has Gradient Raised?

1. Pre-Seed Round
   • Amount Raised: USD 100,000
   • Date: March 2019
   • Lead Investors: Third Sphere, URBAN-X
2. Seed Round
   • Amount Raised: USD 5,900,000
   • Date: December 2019
   • Lead Investors: Prime Impact Fund
   • Other Investors: PRIME Coalition, Third Sphere
3. Debt Financing
   • Amount Raised: USD 6,500,000
   • Date: April 2021
   • Lead Investors: Undisclosed
4. Grant
   • Amount Raised: USD 9,000,000
   • Date: February 2023
   • Lead Investors: U.S. Department of Energy, California Energy Commission
5. Series A
   • Amount Raised: USD 18,000,000
   • Date: February 2023
   • Lead Investors: Sustainable Future Ventures, Ajax Strategies
   • Other Investors: Safar Partners, Climate Tech Circle, Shared Future Fund, At One Ventures, Impact Science Ventures
6. Series A Follow-On
   • Amount Raised: USD 9,000,000
   • Date: June 2023
   • Lead Investors: Climate Investment (CI)
7. Convertible Note
   • Amount Raised: Undisclosed
   • Date: October 2023
   • Lead Investors: Elemental Excelerator
8. Series A Follow-On
   • Amount Raised: USD 9,500,000
   • Date: February 2024
   • Lead Investors: Undisclosed

Total Amount Raised: At least $58M based on disclosed funding (including grants and all equity rounds).

Key Investors

• Sustainable Future Ventures
  • Details: Sustainable Future Ventures co-led Gradient's initial $18M Series A round in February 2023. Partner Matt Chagan joined Gradient's board as a result of the investment. The firm focuses on early-stage clean energy and climate technology companies.
• Ajax Strategies
  • Details: Ajax Strategies co-led the $18M Series A in February 2023 alongside Sustainable Future Ventures. Ajax is a climate-focused investment firm backing founders building solutions to decarbonize major economic sectors.
• Climate Investment (CI)
  • Details: Climate Investment led the $9M Series A follow-on in June 2023, valuing the company at approximately $90M. Managing Director Cindi Bough joined Gradient's board, and Technology Director Rick Cutright joined as an observer.
• Prime Impact Fund
  • Details: Prime Impact Fund led Gradient's $5.9M Seed round in December 2019. The fund invests in early-stage companies developing technologies to address climate change at scale.
• U.S. Department of Energy
  • Details: The U.S. Department of Energy provided a $9M grant to Gradient in February 2023 to support heat pump manufacturing innovation and clean energy advancement.

What's Next for Gradient?

Gradient is well-positioned to capitalize on growing demand for energy-efficient home climate solutions amid rising energy costs and increasing climate awareness. The company's window heat pump technology, which requires no permanent installation, addresses a massive underserved market of apartment dwellers and renters who cannot modify their homes for traditional HVAC systems. With strong backing from climate-focused investors and support from government grants, Gradient is focused on scaling manufacturing, expanding distribution, and continuing to drive down costs. As electrification of homes accelerates and utility incentives for heat pumps increase under the Inflation Reduction Act, Gradient's products are increasingly accessible and attractive to a broader customer base.

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