Heatio secures £2 million investment to revolutionise clean energy access
Liverpool-based clean-tech startup Heatio has successfully secured £2 million in investment, marking a significant milestone in its mission to make clean energy more accessible and affordable.
Founded in 2022 by Simon Roberts and Thomas Farquhar, Heatio is revolutionising home energy management with smart home energy platform, Heatio Flexx.
This home energy platform, connected to Heatio’s Virtual Power Plant, optimises and manages renewable technologies like solar panels, heat pumps, EV chargers, and batteries. Using AI and machine learning, Heatio Flexx also provides tailored energy solutions based on the property type and how much energy individual households use, making the property more efficient and enabling consumers to save money on their energy bills.
The oversubscribed investment round was led by Ascension, with support from a number of co-investors, including Conduit Connect, The Syndicate Room, Baltic Ventures, LYVA Labs, and deep tech investor Neil Norman.
The investment will be used to expand the Heatio team, launch version 2 of the Heatio Flexx app and scale the onboarding process for new customers.
It will also support Heatio’s delivery of two contracts within the Government’s Net Zero Portfolio. Working with E.ON and Energy Systems Catapult, Heatio will provide a new renewable technology subscription called Energy as a Service (EaaS), in a pilot contract for 350 homes in the North West that will eliminate upfront costs for consumers considering heat pumps, solar PV, or battery storage. Heatio is also working in partnership with Perenna Bank and Energy Systems Catapult to launch a long-term fixed-rate green mortgage that rewards homeowners with a preferential interest rate for retrofitting their homes with low-carbon technologies, driven by the Heatio Flexx platform.
Simon Roberts, CEO of Heatio, added: “Our ability to help homeowners access affordable energy via our Flexx platform and virtual power plant drives energy security and helps the UK get to a clean, green future. When we launched Heatio two years ago, our priority was to help more consumers access green technology and reduce the use of fossil fuels to decarbonise their homes. Through this investment, we are moving closer to making that a reality. We are looking forward to driving our expansion and working with industry leaders and would like to extend our appreciation to every investor for helping us get where we are today.”
Jean de Fougerolles, Managing Partner at Ascension, who will also be joining the Heatio board said: “We are thrilled to be supporting Heatio in its mission to reduce energy costs and democratise access to renewable sources of energy for the home. With the typical annual household bill having increased by 49% since pre-crisis levels, the scale of the problem is massive, and Heatio’s innovative solution is uniquely positioned to address it through a partner-based business model that simultaneously helps the UK move towards a Net Zero goal. We look forward to helping the team achieve its vision.”
Chairman and key investor Neil Norman said “Heatio has the potential to accelerate the transition to clean, affordable energy in the home with its innovative Flexx platform. I look forward to supporting Simon, Tom and the team to realise their ambition to the full.”
Akshay Bhatnagar, Head of Investment at LYVA Labs said: “It was a pleasure to work with Tom and Simon as part of LYVA Labs’ incubator programme and to have supported the company with a £100,000 investment as part of this £2m round. We hope this will inspire innovative start-ups in life sciences, deep tech, and climate tech to apply to our next incubator programme, launching in September, with the opportunity to receive investment and support from LYVA Labs. Well done to Heatio.”
Mo Aldalou, Programme Director, Baltic Ventures, said: “Tom and Simon were part of Baltic Ventures’ first cohort and we were blown away by their conviction, passion and tenacity as founders. We were incredibly proud to invest in them through our angel syndicate and support their growth, learning and fundraising journeys through our annual flagship Accelerator programme. I have no doubt that Heatio will continue to grow and make the world a better place with their laser-focused mission of creating a cleaner and greener future.”
Alexander Shapiro, Investment Manager at The Conduit EIS Impact Fund, said: “The Conduit EIS Impact Fund is thrilled to have participated in this seed round. Simon and Thomas’ commitment to making renewable energy solutions affordable and accessible for everyone aligns perfectly with our fund’s vision for a sustainable future. Decarbonising household energy is a huge and wicked problem – we have been incredibly impressed by the way the Heatio team has created a product that adds value to every stakeholder in a complex market. We very much look forward to supporting Heatio’s mission and contributing to their continued success.”
About Ascension: Ascension VC is a leading early-stage VC with £100m+ AUM. Its latest £50m Ascension Fund III, backing tech innovations that enhance the lives of lower-income communities by investing in high growth sectors relevant to them (Fintech, Energy, Health).
About The Conduit EIS Impact Fund: The Conduit EIS Impact Fund is at the heart of the global impact investing ecosystem. It is a partner organisation to The Conduit, a global membership of over 4,000 people passionate about positive social and climate change.
The Conduit EIS Impact Fund launched in 2021 with a clear mission: to drive capital to founders who are solving some of the greatest challenges facing people and the planet while generating investor returns. The fund invests in scalable impact ventures that benefit from EIS tax relief and have raised £8.89m from over 100 investors. They have made 25 investments (including follow-ons) to date across four impact themes: Climate, Education, Health and Inclusion.
Learn more at: https://www.theconduitconnect.com/fund
About LYVA Labs: We deliver economic growth in the Liverpool City Region through the commercialisation of innovation. We inspire ideas, create partnerships, and attract investment. LYVA Labs launched in 2021 with £10.5m from the Liverpool City Region Combined Authority to pursue a vision for our region to be internationally recognised as an open innovation ecosystem with world-class resources and talent, delivering solutions to global problems. Our shared ambition is for 5% of Liverpool City Region GVA to be invested in R&D by 2030.
We provide tailored innovation consultancy and support to businesses of all sizes and sectors, inspiring collaboration across the ecosystem, exploiting the wealth of innovation assets and helping them secure appropriate funding and investment. We make early-stage investments in key growth technologies and sectors spanning health and life sciences, advanced manufacturing and materials chemistry, deep tech, and clean tech. Our profits are reinvested into helping ideas-rich entrepreneurs and businesses create high-value jobs and positive economic and societal impacts.
Learn more at: www.lyvalabs.com
