Vamo Expands Seed Round to Over €10 Million to Advance Heat Pump Deployment

Sustainable heating startup Vamo announced that it has raised €7 million in new capital, expanding its seed round to over €10 million (USD $10.8 million), after having raised €3 million in 2023. The proceeds will be used to advance Vamo’s solution that enables households to deploy heat pumps.

Heat pumps are rapidly emerging as an energy-efficient and climate-friendly alternative to traditional furnaces and air conditioners, producing fewer greenhouse gas emissions and reducing reliance on fossil fuels. According to the International Energy Agency (IEA), heat pumps have the potential to cut global CO2 emissions by at least 500 million tons by 2030.

Founded in 2022 and based in Cologne, Germany, Vamo helps customers switch from oil and gas to modern heat pump systems using its proprietary software solution, HeatOS. This software optimizes the process from the customer’s request to installation by managing the complex supply chain in the background. Vamo stated that the switch from gas or oil heating to a heat pump system can be completed within 30 days. Once installed, the heat pumps are connected to the internet and monitored and optimized in Vamo’s control room to ensure reliable performance, maximized efficiency, and minimized energy consumption.

Vamo is building what it calls “the Heat Fleet,” a growing network of interconnected heat pumps that form a smart system capable of adapting to fluctuating energy demand and optimizing energy consumption. This system can help reduce the need for grid expansion and infrastructure costs.

Dr. Jan Ossenbrink, co-founder and CEO of Vamo, said: “We will render heat pumps a no-brainer for mainstream customers, making it risk and burden-free for homeowners to switch to the cheapest form of heating. All of this while earning money from stabilizing the power grid of the future. The new funding will allow us to seize the Edison moment in green digital heating.”

The funding round was led by Berlin’s Extantia Capital and Munich’s GET Fund, with participation from existing investors caesar, neosfer, and Realyze.

Joern Carlos Kuntze, co-founder and partner at Extantia Capital, commented: “Vamo is set to lead the future of sustainable heating. We’re thrilled to back a team proving that the transition can be faster, more affordable, and capable of saving customers millions.”