Geothermal Startup, Dandelion, Raises $2 Million Seed Round, Led by Collaborative Fund
July 06, 2017, New York, NY – Today, home geothermal startup, Dandelion, announced it has raised a $2 million seed round to kick-off its sales and operations. The round was led by Collaborative Fund and includes ZhenFund and Borealis Ventures.
“Dandelion’s business model enables homeowners to make the sustainable choice the most economic choice, which is a powerful combo.”
After two years in X, Alphabet’s “moonshot factory”, Dandelion has set up as an independent company (outside of Alphabet) to be led by Kathy Hannun and James Quazi. While at X, Kathy, now CEO of Dandelion, led a team that investigated how to make geothermal systems more affordable and accessible to homeowners. James, who formerly founded a home improvement company that was sold to SolarCity, will lead Dandelion’s technology development.
In the U.S., buildings account for 39% of all carbon emissions, and the majority of these emissions come from heating and cooling. Dandelion’s solution will cost consumers around half of what geothermal installations have cost to date and be less expensive than fuel oil or propane heating.
Home geothermal systems harness thermal energy from below the earth’s surface to heat and cool homes and produce hot water. The system pumps heat away from the home into the earth during summer to keep the home cool, and pumps heat from the earth into the home in winter to keep the place warm.
Kathy Hannun, CEO of Dandelion, says, “We started this project because we realized millions of homeowners are using expensive, truck-delivered fuels because they don’t have access to better options today. We knew if installing a geothermal heat pump was a simpler and more affordable process, these homeowners would have access to a better product that’s also better for the climate.”
“There is a macro shift in the economy towards businesses that can align the self interest with the broader interest,” says Craig Shapiro, Founder and Managing Partner at Collaborative Fund. “Dandelion’s business model enables homeowners to make the sustainable choice the most economic choice, which is a powerful combo.”
Dandelion’s low-cost geothermal installations are available for zero down for qualifying homeowners, enabling many homeowners to begin saving on monthly heating and cooling expenses immediately by switching to geothermal. The system will provide homeowners with renewable heating, cooling, and hot water and include monitoring and a smart thermostat. Dandelion is now operational in the New York Hudson Valley and Capital Region.
Dandelion’s mission is to provide earth-powered heating to every home. Its geothermal marketplace connects homeowners looking for cleaner, more affordable heating with local companies selected to install Dandelion home geothermal. Dandelion began at Google parent company Alphabet’s X lab before launching as an independent company in May 2017. Dandelion now operates out of New York City. To learn more, visit us at www.dandelionenergy.com.
X, the innovation engine of Alphabet, incubates new breakthroughs in science or technology that, we hope, could solve huge problems that affect millions of people. Our inventors, engineers, designers, and makers apply audacious thinking and radical new technology to huge problems. We tackle ideas that have the riskiness of research and run at them with the focus and speed of a startup. Our goal is to develop and de-risk early-stage technologies and turn them into products that can be the foundation for large, sustainable businesses. To learn more about how the moonshot factory works, see this blog post from Astro Teller, our Captain of Moonshots. To receive regular updates on X, follow us on Instagram, Twitter or Facebook.
About Collaborative Fund
With over $150 million in assets under management, Collaborative Fund is a leading source of capital and support for entrepreneurs pushing the world forward. Our portfolio success fuels great organizations including the Kaiser Family Foundation, Sesame Workshop, California Endowment, and Oxford University Endowment. For more information, please visit us at: www.collaborativefund.com.