VARM Secures €5.7 Million Seed Funding to Build the European Insulation Champion and Drive Decarbonization Efforts
VARM Secures €5.7 Million Seed Funding
Founded in 2023, VARM is building the European Insulation Champion to help decarbonize the building sector faster and solve the blue-collar skills gap.
The company is training people to become insulation installers and will offer them a business-in-a-box solution to start their own firm, connecting them with homeowners to reduce their carbon footprint and improve energy efficiency.
Starting in Germany, where almost a fifth of CO₂ emissions are caused by residential heating, VARM is seeking to insulate one million homes in the next 10 years.
The funding builds on the growth and momentum of VARM’s pre-seed round in October 2023.
Berlin, 17 July 2024 – VARM, the pioneering insulation startup, has announced it has secured €5.7 million ($6.1 million) in seed funding, led by Emerge and Pale Blue Dot, with additional support from existing investors noa (formerly A/O), Foundamental, and previous angel investors. This investment will significantly advance VARM's mission to decarbonize Europe by revolutionizing the insulation industry.
Founded in 2023 by serial founders Christian Gruener and Sebastian Wuerz, VARM has swiftly emerged as a leader in the insulation sector, focusing on bridging the skills gap that hampers large-scale insulation efforts. By training new installers and connecting them with homeowners, VARM aims to dramatically reduce carbon footprints and enhance energy efficiency across Europe. This funding round will enable VARM to expand its "Cloud Installers" initiative, offering a comprehensive business-in-a-box solution that empowers workers to start and scale their insulation services effectively while addressing the skills gaps in the European craftsman sector, which already lacks 3 million skilled workers.
Heating alone accounts for nearly a fifth of CO₂ emissions in Germany, where VARM is initially operating. Across the EU, three quarters of all buildings are deemed energy inefficient, while the built sector causes more than a third of energy-related emissions. The professional insulation of a single-family home can save up to 50% in energy consumption, and yet only 1% of buildings are renovated to become more efficient each year.
VARM's affordable insulation approach addresses the crucial need for energy-efficient buildings, which are essential for meeting Europe's climate goals, while also taking account of limited household budgets during times of global economic instability. By connecting a local workforce of independent insulators with its insulation technologies, VARM aims to fuel the future of insulation. With their current focus on air-gap insulation (also known as cavity wall or blown-in insulation) VARM not only improves insulation efficacy but also reduces installation time and costs, making it a more attractive option for homeowners and businesses alike.
"In the next 10 years, we have to transform high emissions buildings to become energy-efficient. The most effective way to do this is insulation and not heat pumps or solar." said Christian Gruener, Co-founder and CEO of VARM. "This is why we build a scalable infrastructure for insulation. This funding will help us expand and innovate, making insulation more accessible and affordable for everyone."
Heidi Lindvall, Partner at Pale Blue Dot, expressed her enthusiasm for VARM's potential: "We believe that VARM's innovative approach to addressing the insulation skills gap can have a massive impact on reducing household emissions across Europe. Their vision aligns perfectly with our mission to support startups that are combating climate change."
Mario Barosevcic, Partner at Emerge, also highlighted the importance of VARM's educational aspect: "Training new installers not only addresses the immediate demand for skilled workers but also provides long-term career perspectives by democratizing access to opportunity. We're excited to support Christian and Sebastian in their journey to create a more sustainable future."
About Pale Blue Dot
Pale Blue Dot is a European pre-seed and seed stage VC fund backing the most ambitious entrepreneurs that are building solutions to help reduce and reverse the climate crisis as well as prepare for a new world. For more information, visit Pale Blue Dot.
About Emerge
Emerge is a global pre-seed fund backed by 100+ of the world’s best edtech operators. Our vision is to democratise access to opportunity – by being a catalytic partner for early-stage edtech founders. For more information, visit Emerge.
About noa
noa (formerly A/O) is Europe’s largest built world venture capital firm and partners with the most talented founders, engineers, executives and thought leaders on revolutionary, category-leading investments to drive disruption in real estate and positively impact the entire build world ecosystem and beyond.
Launched in 2019 as A/O, noa closed its first evergreen vehicle with €250m, backed by some of the largest and most forward-thinking real estate owners, operators and family offices in Europe who share noa’s vision and commitment to improving quality of life, accelerating sustainable living, and enabling decarbonisation of the largest asset class in the world.
For more information, visit www.noavc.com.
About Foundamental
Foundamental is the largest global investor in technology for construction, architecture, engineering, design, renovation, blue-collar, and their supply chains and logistics. Foundamental backs ambitious, early-stage founders across the Americas, Asia-Pacific and Europe and was an early investor in several category-defining startups, including Infra.Market, Wiz, Speckle, Enter, Snaptrude, Welcome Homes, and Forge.
