Newfoundland-based smart thermostat tech company Mysa has raised $20.3 million CAD in its all-equity Series B funding round led by Cycle Capital, a venture capital firm focused on investing in tech that aims to reduce greenhouse gas emissions.
Other participating investors include Round13 Capital, which provided financing through its Earth Tech Fund; Climate Innovation Capital; BDC’s Cleantech Practice; as well as returning investors Export Development Canada and Killick Capital.
A brainchild of Joshua and Zachary Green, Mysa was spun out of Dalhousie University from the former’s final year of mechanical engineering studies in 2016. Initially naming the company Empowered Homes, the pair began developing Mysa as a smart thermostat to work with electric heaters such as baseboards, fan-forced heaters, and in-floor heaters.
Homeowners can efficiently adjust the heating and cooling systems in their houses through the Mysa app, allowing them to reduce energy consumption and electricity bill costs.
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Mysa said the new funding will support the continued development of its energy efficiency hardware and software, the creation of demand response solutions for electrical utilities, and the expansion of its marketing and distribution channels. The company said that it has $30 million CAD in total funding to date.
Mysa’s raise follows news this week that Toronto smart thermostat startup Ecobee is to be acquired by Generac Holdings for $770 million USD. Generacis making the deal to beef up its position in the connected smart home energy consumer market with an eye towards connecting power generation, energy storage and energy management devices.
Ecobee’s investors included the likes of Amazon’s Alexa Fund, Caisse de dépôt et placement du Québec (CDPQ), BDC, Northleaf Capital Partners, and Relay Ventures.
Allied Market Research reports that the global smart thermostat market size was valued at $1.6 billion in 2019 and is projected to reach $11.36 billion by 2027, generating a compound annual growth rate of 28 percent during the forecast period.
In July 2020, Mysa also received funding from BDC Capital, as well as Venture NL. The $6.2 million was put towards product launches outside North America.
Mysa also raised a $2 million round of financing in December 2018 from investors Killick Capital, Pelorus Ventures, and other undisclosed entities. Chris Huskilson, former CEO of Halifax-based cleantech company Emera, also joined Mysa’s board of directors.