German Proptech Novo Secures €1M Funding to Accelerate Building Decarbonisation

Berlin-based proptech startup Novo has secured €1 million in pre-seed funding to expedite the decarbonisation of real estate on a large scale. Novo’s innovative technology streamlines and automates the complex processes involved in analyzing, planning, and financing energy renovations for buildings.

The core of Novo’s solution lies in its ability to assess the current state of a building, develop a comprehensive energy renovation plan for property owners, and connect them with subsidies and loans to reduce renovation costs. With the European Union setting an ambitious goal of renovating 15 percent of its building stock by 2030, Novo’s automation capabilities are poised to play a crucial role in accelerating this transition.

The current rate of building renovation in Germany stands at a mere 1 percent, highlighting the urgent need for faster and more efficient solutions. Novo’s technology expedites the planning phase for building owners, facilitating the seamless execution of renovations. This approach has the potential to enable up to 80 percent reduction in carbon emissions from 35 million buildings in need of energy renovation over the next six years.

Novo has already established partnerships with major players, including financial institutions and energy providers, to reach building owners at scale. These collaborations are currently active in Germany, with DZ Bank and RheinEnergie as key partners, representing a substantial volume of over 7 million buildings.

Energy renovation of buildings has emerged as a critical component in the fight against climate change. The German Parliament recently passed the Building and Energy Efficiency Law to address the challenge of reducing carbon emissions in homes.

Mona Hornung, Co-Founder of Novo, emphasized the significance of the venture, stating, “Reducing carbon emissions from buildings is becoming a major focus, and Novo is uniquely positioned to disrupt the energy renovation sector digitally.”

The funding round, led by Citizen Capital, marks their first investment in a German company. Co-lead investor 2bX specializes in urban tech, while Novo has also secured investment from Antler, a prominent global early-stage VC firm. Notable angel investors Franz De Waal and Kerstin Bock have also participated.

Olivier Mougenot, Partner at Citizen Capital, expressed their enthusiasm, saying, “We’re thrilled to support Novo’s mission to simplify and expedite access to essential home energy renovations. Novo’s commitment to advancing climate action in real estate across Europe aligns perfectly with our vision.”

The funds raised will be channeled into further enhancing Novo’s technology and automating the energy renovation process, contributing to the ambitious goal of decarbonizing Europe’s building stock.