Funding will accelerate the adoption of Grid-Interactive Efficient Buildings (GEBs) through HVAC optimization in the multifamily and hospitality sectors.
Toronto, ON – Parity, the leading remote HVAC Optimization as a Service company for multifamily buildings and hotels, announced today the successful closing of its $19M Series B funding round by Idealist Capital.
The milestone comes as real estate continues to grapple with its significant contribution to carbon emissions, accounting for 40 percent of the total, with half stemming from inefficient HVAC systems. In multifamily buildings, nearly a third of energy consumption is wasted.
Trusted by many of North America’s largest real estate owners, operators, and investors, Parity limits energy waste and maximizes demand response performance by remotely operating existing heating, ventilation, and cooling systems in real-time. This approach takes the daily management of HVAC performance off the shoulders of building managers by autonomously optimizing control adjustments in real-time. By integrating with a building’s existing control infrastructure, Parity also minimizes the need for new hardware.
To date, Parity has delivered measured energy savings across more than 65 million square feet of multifamily and hospitality real estate. The latest funding round allows Parity to focus on geographic expansion across the United States, as well as targeting new verticals, including senior and student housing. Additionally, the company plans to continue rolling out new products and services to further drive automated building efficiency and grid interactivity.
The round was completed by Idealist Capital, joining existing investors ArcTern Ventures, Wyse Meter Solutions Inc., and RET Ventures.
“Real estate is at an inflection point. Operational inefficiencies cost owners and operators money with high utility bills and increased environmental regulations,” said Brad Pilgrim, Founder & CEO of Parity. “Utility rates continue to rise and so do demands for buildings to interact with the grid in new and more complex ways. HVAC systems consume over half of the energy used in multifamily buildings, making them a necessary component to solving these issues. This funding allows us to continue helping owners and operators improve operational efficiency, expand operations across the US, and increase our product functionality – benefiting environmental goals, as well as our customers’ bottom lines.”
As grids decarbonize by turning to intermittent renewable energy resources such as wind and solar, buildings will be incentivized to develop the ability to more dynamically control when electricity is consumed. Parity’s vision is to utilize their HVAC optimization automation software to transform every building they work with into a grid-interactive efficient building (GEB), aligning perfectly with these changing grid dynamics and allowing their customers to capture the associated monetary benefits.
“Parity has developed and deployed a cost-effective solution for the real estate industry. An important element of decarbonizing the built environment is accounting for energy wasted,” said Pierre Larochelle, Co-Managing Partner at Idealist Capital. “No building will be net zero without a comprehensive system in place to stop excess energy waste. Idealist Capital is excited to partner with an innovative company pushing an outcome-based approach to sustainability.”
As utility bills rise, owners and operators can no longer afford to waste excess energy. With baseline data collection, real-time HVAC optimization, and automated International Performance Measurement and Verification Protocol (IPMVP), Parity guarantees utility cost savings. Parity is also a leading solution for buildings in markets with building performance standards in place. As various cities and states introduce these stringent decarbonization laws for buildings, Parity seeks to reduce GHG emissions by automating HVAC systems’ efficiency and driving emissions reductions on an ongoing basis.
Parity has been recognized for its innovative software and supporting service, receiving nominations such as Wood and Mac’s Companies to Watch (2019) and being listed in the Globe and Mail’s Top Growing Companies for three consecutive years (2020-2022). Parity was also named to the Global CleanTech 100 list (2021) Most recently, Parity was the first service provider to be awarded the designation of LEADER by the NYC Accelerator in 2023.
Parity is an HVAC Optimization as a Service company. We deliver automatic, guaranteed energy and cost savings to multifamily residential and hospitality properties. Our advanced control automation algorithms, real-time monitoring, proactive technical support, and savings verification ensure that heating, cooling, and ventilation systems are operated efficiently every day. This eliminates energy waste, maximizes demand response revenue, and reduces onsite staff workloads, all while maintaining occupant comfort in the buildings we serve.
Idealist Capital is an investment firm focused on accelerating the energy transition by providing growth capital to entrepreneurs with a primary focus on the Canadian market. Idealist Capital supports businesses whose activities enable positive climate impact across one of three themes – (i) the decarbonization of power supply, (ii) the electrification of transportation, and (iii) the decarbonization of industrials and circular economy. The Firm has a mandate to achieve excellent risk-adjusted returns while scaling solutions which are beneficial to the climate. Idealist Capital underwrites its carbon impact and integrates critical non-financial KPIs in its asset management process to build sustainable platforms. To learn more about Idealist Capital, visit Idealist Capital.
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Parity is excited to announce we closed a $4 million loan facility from NY Green Bank to finance our HVAC Optimization as a Service solution to improve energy efficiency in New York State.
This is NY Green Bank’s first transaction focused on a software-as-a-service solution for energy-efficiency building upgrades.
There was a lack of precedent and limited appetite from traditional commercial debt providers to finance transactions tied to utility incentives. Utility incentives may not fit into any one asset class or may be too small individually to generate sufficient interest from traditional debt investors.
NY Green Bank’s transaction addresses this gap in the market by bridging the utility incentive payments and freeing up capital for the borrower to focus on business expansion and accelerating the deployment of its SaaS solution.
Brad Pilgrim, CEO of Parity, says, “We are extremely excited to be working with NY Green Bank. This is a significant partnership for us with a US lender. Our organization’s goals, when it comes to reducing GHG emissions from buildings in New York City, are very closely aligned.
We look forward to leveraging this partnership with NY Green Bank and capital facility to help building managers and asset owners implement the necessary technology to minimize wasted energy in buildings and build a greener, more sustainable future.”
Parity remotely controls and optimizes HVAC systems 24/7/365 to deliver automatic energy savings and revenue to multifamily residential buildings and hotels.
Optimizer is our HVAC Optimization as a Service solution that micromanages your HVAC systems 24/7/365. Optimizer remotely and automatically adjusts set points, motor speeds, and other related performance parameters. This minimizes energy consumption and reduces your staff’s workload while maintaining a comfortable building climate for your occupants.
The full Optimizer service consists of our control optimization software, Parity Insights (Pi) dashboard, automated demand response curtailment, and support from our team of remote and onsite HVAC experts.
For more information, email contact@paritygo.com or read the full case study from NY Green Bank here.
What do you get when you mix a lot of hard work and a mission to make the planet more sustainable? We find ourselves named a 2021 Global Cleantech 100 Company by Cleantech Group.
The 100 companies on the 2021 Global Cleantech 100 List represent the private, independent, and for-profit companies best positioned to contribute to a more digitized, de-carbonized, and resource-efficient future.
Parity was selected from more than 8,312 nominations from over 80 countries to make up the 2021 Global Cleantech 100 List.
The fact is, the environment is crumbling around us. Parity and its staff are on a mission, arm-in-arm with the other 99 companies on this list, and the innumerable climate advocates and innovators around the world, to create tangible change for the climate. We are certainly proud to be recognized but we are even more proud that our expertise and technology, and the building partners we work with, have helped prevent more than 8.9 million pounds of CO2 emissions since our inception.
The technology we create, the partnerships we secure, and the team we continue to grow are all important pieces of the puzzle helping advance our collective climate goals.
Global Cleantech 100
On that note, this excerpt from the 2021 Global Cleantech 100 List List Report is an important reminder about why this list and the mission it represents, matters:
“The inconvenient truth is that the problems being tackled by these 100 companies on the 2021 Global Cleantech 100 List and the hundreds of others beyond unfortunately have a timer attached to them. That timer is monitoring whether humanity … proves able and willing to pull back from the irreversible destruction of the very environment…
As we enter the last quarter of [2020], my sobering conclusion is that we are clearly not winning. We need a remarkable turnaround – and fast. Human ingenuity and innovative spirit are match-fit for the herculean tasks ahead. Our innovation community can be a great contributor, but we cannot do it alone in the time available. To roar, these 20s need people in power to act with urgency and intent. Our leaders must have a long-term vision and the conviction to face up to vested interests, naysayers, and doubters.”
-Richard Youngman CEO, Cleantech Group
Being on the 2021 Global Cleantech 100 List is a proud moment for Parity but, more importantly, serves as a rallying cry to us and others to continue to commit to and encourage the inventions, ideas, and solutions that can help support the long-term wellness of our environment.
Congrats to all the fellow companies on this list and thank you to the Cleantech Group for this recognition. We’re honored to be on the 2021 Global Cleantech 100 List.
We are pleased to announce that Parity has been named a New York State Energy Research and Development Authority (NYSERDA) Qualified Vendor for the Real-Time Energy Management (RTEM) Program.
Real Time Energy Management (RTEM) combines technology and services to act as the functioning brain of a building. RTEM technology sends a building’s live performance data to a cloud-based system, where it is transformed into actionable insights for property owners, building managers, and tenants.
NYSERDA offers a 30% cost-share incentive for building owners to deploy energy management solutions such as Parity’s platform. The NYSERDA Real Time Energy Management (RTEM) Program helps support implementation and subscription costs for a period of five years.
Photo by NASA on Unsplash
New and current Parity clients can take advantage of the program. In many cases customers are also eligible for local utility incentives, such as those through Con Edison, further reducing costs and Parity’s quick payback period.
NYSERDA offers objective information and analysis, innovative programs, technical expertise, and support to help New Yorkers increase energy efficiency, save money, use renewable energy, and reduce reliance on fossil fuels. A public benefit corporation, NYSERDA has been advancing energy solutions and working to protect the environment since 1975.
For more information, please visit: NYSERDA.NY.GOV
Parity is pleased to announce it placed No. 50 on the 2020 Globe and Mail’s Canada Top Growing Companies List.
Canada’s Top Growing Companies ranks Canadian companies on three-year revenue growth. Parity earned its spot with a 3-year growth of 1,107%.
Parity is a Remote HVAC Optimization as a Service company responsible for driving innovations in building automation processes to lower costs, decrease CO2 emissions, and support sustainable living in residential buildings in cities across North America. To date, the company has prevented an estimated 7 million+ pounds of carbon emissions from entering the atmosphere from residential buildings.
“We’re extremely excited. This is the evidence and validation that we are the fastest growing multi-residential HVAC management platform in North America,” said Brad Pilgrim, CEO, Parity Inc.
“The rapidly building momentum we have achieved over the last few years with our partners and customers has given us the rocket fuel to take this solution across the country very quickly into every major city by providing an incredibly unique product and service.”
Today, Parity employs 30+ full-time staff shared between their head office in Toronto, Ontario, Canada, and New York City. Parity achieved a 440% increase in its client base in 2019 and anticipates continued growth in the North American market.
Launched in 2019, Canada’s Top Growing Companies editorial ranking aims to celebrate entrepreneurial achievement in Canada by identifying and amplifying the success of growth-minded, independent businesses in Canada. It is a voluntary program; companies had to complete an in-depth application process to qualify. In total, 400 companies earned a spot on this year’s ranking.
The full list of 2020 winners, and accompanying editorial coverage, is published in the October issue of Report on Business magazine—out now—and online.
“The stories of Canada’s Top Growing Companies are worth telling at any time, but are especially relevant in the wake of COVID-19 pandemic,” says James Cowan, Editor of Report on Business magazine. “As businesses work to rebuild the economy, their resilience and innovation make for essential reading.”
“Any business leader seeking inspiration should look no further than the 400 businesses on this year’s Report on Business ranking of Canada’s Top Growing Companies,” says Phillip Crawley, Publisher and CEO of The Globe and Mail. “Their growth helps to make Canada a better place, and we are proud to bring their stories to our readers.”
The Globe and Mail is Canada’s foremost news media company, leading the national discussion and causing policy change through brave and independent journalism since 1844. With award-winning coverage of business, politics, and national affairs, The Globe and Mail newspaper reaches 5.9 million readers every week in print or digital formats, and Report on Business magazine reaches 2.1 million readers in print and digital every issue. The Globe and Mail’s investment in innovative data science means that as the world continues to change, so does The Globe. The Globe and Mail is owned by Woodbridge, the investment arm of the Thomson family.
We are pleased to announce that our CEO and Co-founder Brad Pilgrim has been recognized as a 2020 Clean50 honouree. The Clean50 Award recognizes Brad’s leadership in re-imagining how smart technology can successfully support energy management and conservation in buildings.
Canada’s Clean50 Award is announced annually by Delta Management Group and the Clean50 organization to recognize those 50 individuals or small teams, from 16 different categories, who have done the most to advance the causes of sustainability and clean capitalism in Canada over the past 2 years.
Delta’s criteria in determining Honourees is to consider actual measurable accomplishments carefully, demonstrated innovation, collaboration with other organizations, and the power of the Honouree’s contribution to inspire other Canadians to take similar action.
“Brad Pilgrim was chosen after rigorous screening and research by Delta Management, with advice from internal researchers and external advisors, and was among just 50 Honourees selected from an initial pool of approximately 750 very well-qualified nominees from across Canada,” says Gavin Pitchford, CEO & Founder, Delta Management Group, responsible for the Clean50 Award.
Estimates suggest that buildings make up 40% of all carbon emissions and account for 12% of Canada’s greenhouse gas emissions.
“Over the past 3 years, Brad has led his company to develop and deploy the first AI-powered energy management platform for multi-residential buildings in order to champion his personal mission to eliminate energy waste in buildings, Using this platform,” says Pitchford. “Brad and his team have helped prevent more than 14 million lbs of CO2 emissions from their customers’ buildings since 2017, saving them an average of more than $60,000 per year in utility use, and are contracted to save their current customer base of more than $2 million in the coming year.”
Parity remotely controls and optimizes HVAC systems 24/7/365 to deliver automatic energy savings and revenue to multifamily residential buildings and hotels.
The Parity approach eliminates the need for constant manual adjustments and allows building managers to achieve maximum energy efficiency while reducing their staff’s workload. Optimization can be used on equipment related to heating, cooling, fresh air, and domestic water. This includes boilers, chillers, cooling towers, condenser pumps, hydronic pumps, makeup air units, and booster pumps.
“I am proud to have received the 2020 Clean50 Award. It is a privilege to be included among such esteemed thought leaders and change-makers,” says Pilgrim. “I am even more pleased to continue to work in the area of energy management, collaborating with the Parity team to deliver innovative thinking and solutions that directly result in an improved and sustainable urban living experience.
We’re pleased to announce that Green Tech Media (a Wood Mackenzie Business) has named Parity a “Cleantech Startup to Watch”.
The following is the take by analyst Fei Wang at Wood Mackenzie:
“Building energy management system vendors have traditionally focused on the cost-saving potential of their products and services. More recently, an additional selling point is an improvement in the comfort of the indoor environment. The multifamily-building segment has also garnered more attention, as developers race to build apartment buildings around city centers to accommodate increasing numbers of renters in the U.S., and more partnerships have formed between real estate developers and vendors with energy management offerings.”
Wood Mackenzie Power & Renewables’ solar, storage, grid edge, wind, and power analysts deliver actionable insight into the state and the future of the global electricity sector, backed by exclusive relationships with industry partners, proprietary models, and an ever-expanding executive network. These analysts decided on the Cleantech Startups to Watch.
Wood Mackenzie, also known as WoodMac, is a global provider of data and analytics for the energy transition.
Click here to read the full announcement on Green Tech Media and see the other 5 Cleantech Startups to Watch.
We are pleased to announce the company has received $1.25 million in venture debt from Silicon Valley Bank (SVB), the bank of the world’s most innovative companies and their investors. The investment will help accelerate our planned expansion into the US market.
“Silicon Valley Bank (SVB) is known across North America for successfully helping innovative companies identify and seize the opportunity,” said Brad Pilgrim, CEO, Parity. “We are excited to work with their team of experts. Their support adds additional fuel to our building momentum, and we look forward to leveraging their investment and confidence as we look to grow across North America.”
Parity’s Optimizer service controls existing HVAC equipment in multi-residential buildings with our Optimizer service to guarantee 20 – 30% energy savings. Our capital-light, non-intrusive model stands in contrast to more traditional energy retrofits, which typically require substantive investments in equipment and can be disruptive to occupants.
This investment supports Parity and our ongoing expansion of our services across North America.
“Silicon Valley Bank (SVB) is committed to supporting innovative businesses that are shaping the future,” says Win Bear, Head of Business Development in Canada, Silicon Valley Bank (SVB). “Parity’s approach to innovative energy management in buildings helps make buildings smarter and our urban environment more sustainable. SVB is pleased to support Parity as they disrupt the status quo and turn their vision into growth.”
SVB’s investment supports Parity’s strategic plan for expansion. The company expects to start installing its newly optimized energy management platform into multi-residential buildings in the North Eastern United States by the first quarter of 2020.
“We are confident that as we continue to introduce Parity to buildings and customers both here at home and across North America, they will be quick to appreciate how our smart solutions can not only help them improve their energy efficiency but will also help an entire industry reimagine how we think about energy use,” says Pilgrim.
We are pleased to announce that we have closed a Series A investment from ArcTern Ventures, a leading North American cleantech venture fund.
The $5 million Series A round, the first deal for ArcTern Venture’s Fund II, will be used to fund Parity’s expansion into the US market. Parity’s proprietary control algorithms enable substantive energy savings across the built environment, with an initial focus on multi-residential buildings and hotels.
Parity’s capital-light, non-intrusive model stands in contrast to more traditional energy retrofits, which typically require substantive investments in equipment and can be disruptive to occupants. Parity controls existing HVAC equipment with cloud-based artificial intelligence (AI) to deliver 30 – 40% energy savings. The system is cash-flow positive from day one and requires no up-front capital.
“We are pleased to partner with ArcTern Ventures for our Series A to bring our prop-tech solution to the US market,” said Brad Pilgrim, CEO, Parity. “Having proven our technology in Toronto over the last couple of years, we’re eager to expand on that lead. We expect to be operational in two additional markets shortly.”
Photo by Markus Winkler on Unsplash
Parity has made significant progress in HVAC optimization with customers in Toronto by simply collecting data and applying developed proprietary algorithms for better control of energy use. The company has now developed second-generation Deep Learning algorithms in collaboration with Professor Jenn McArthur and her team in Ryerson’s Smart Building Analytics Living Lab. These algorithms incorporate online predictive control optimization currently being tested in the field that has proven to achieve unprecedented performance with significant energy savings.
“Using ML will allow our algorithms to autonomously learn from ongoing building performance letting the algorithm tune itself to individual buildings on their own and permit mass customization of the algorithm across building portfolios actions to deliver the best result,” explains Pilgrim. “We are striving for greatness and the goal of being able to manage any building HVAC system autonomously while maintaining the lowest levels of energy consumption possible and continuously improving performance for our customers.”
The cumulative energy and GHG savings are expected to be substantial. Buildings account for 40% of energy use, but traditional retrofits remain sluggish. A low-capital alternative is expected to accelerate the market adoption of energy savings retrofits.
“Energy efficiency remains the unsung hero of any credible emissions scenario,” said Tom Rand, Managing Partner of ArcTern Ventures. “With our investment, we expect Parity to deliver GHG reductions equivalent to taking half a million cars off the road, permanently. And every customer will be wealthier for having done so.”
We thank ArcTern Ventures for their investment in Parity’s current and future success.