Span

Span, a tech startup that builds smart home electric panels, announced a $96 million Series B2 funding, bringing the total amount of funding for the company to $231 million out of which $186 million has been acquired in a period of 13 months.

Span’s Series B2 Funding

A little over a year ago, Span.IO held its Series B funding round which closed with $90 million raising the company’s valuation to $410 million before the money. This round was led by Fifth Wall Climate Tech and Wellington Management with other investors including A/O PropTech, FootPrint Coalition, Angeleno Group, and Obsidian Investment Partners.

Months later, the business is now launching a $96 million Series B2 funding round which brings its value to $600 million. Congruent Ventures, Capricorn Investment Group, and Alexa Fund were among the preexisting investors who took part in the round, which was led by Wellington Management.

The company intends to use this capital to strengthen and maintain Span’s dominance in the home electrification industry by enhancing its research and development skills and extending its cooperation network to new categories, including major home appliances, smart home gadgets, and grid integrations.

With home electrification becoming increasingly popular across the U.S., there is a clear market for businesses that can assist consumers with the challenging process of giving up fossil fuels. As such, the company has been able to attract investors and have them line up with large financial pledges, helping the company’s valuation rise.

“Consumers are rapidly electrifying their homes with electric vehicles, heat pumps, and induction stoves and increasing their resilience to grid outages by adopting solar and batteries,” said Greg Wasserman, Head of Private Climate Investing at Wellington Management.

Greg added:

These technologies can strain a home’s existing electrical supply. Span’s innovative products dynamically manage circuits in real time and can avoid expensive utility service upgrades for millions of homes. We are excited by SPAN’s growth and partnership development and are expanding our investment in their journey to provide the best home electrification experience”

When asked why they held another funding round, Arch Rao, founder and CEO of Span, told TechCrunch+, “As we were looking at both our own growth aspirations and extraneous factors,” and “as we look at programs like the Inflation Reduction Act, we actually see the opportunity to accelerate over the course of this year or next year. And that’s what prompted the idea of bringing in additional capital.”

According to Rao, the Inflation Reduction Act has altered the company’s business plans but not its business model. It has assisted Span in moving its addressable market forward by at least five years.

Rao, who was formerly head of product for Tesla, established Span in order to reinvent the electrical panel in order to support the electrification of homes. Based on his experience at Tesla, he realized that the process of installing solar panels and electric car chargers is heavily deterred by infrastructure, a problem Span’s smart electrical panel solves.

The Span expansion plan

With the new funding, Span intends to expand in three ways. First, Rao states will be an expansion of the category of products that the company can address within its consumers’ homes.

Secondly, Span plans on enabling as many homes as possible to electrify by expanding beyond the main electrical panel form factor to include subpanels and electrical meter-mounted panels that can serve multifamily structures.

SPAn

Finally, the company plans on making it easier for customers to have access to the product through new collaborations. Thus far, Span has sold the majority of its solar panels through solar installers like the top residential solar installer in the United States, Sunrun, and a number of regional suppliers, as well as through battery suppliers like Tesla, LG, SolarEdge, and Enphase.

Additionally, Span is working on software that offers more precise control over heat pumps, electric water heaters, and other significant power-consuming loads in houses. “We’ve been piloting it for over a year, allowing some partners to have access to a subset of Span homes,” he said. “We’re investing more in making it more universally available.”

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