Quilt’s latest funding round marks a pivotal moment not only for the startup but for the broader climate-tech and residential energy markets. As electrification trends accelerate across North America, the company’s $20 million Series B signals that investors continue to bet on design-centric, software-driven innovation to modernize one of the least glamorous yet fastest-growing categories in clean energy: heat pumps.

A Capital Infusion Aimed at Rapid Expansion

The Redwood City–based company has now raised more than $53 million across Series A and B rounds in under two years, underscoring investor conviction in a sector long dominated by legacy manufacturers. The new funding was led by Energy Impact Partners and Galvanize, with additional participation from Alumni Ventures, Gradient Ventures, Incite Ventures, and Lowercarbon Capital. Galvanize partner Veery Maxwell will join Quilt’s board alongside former Nest CFO Tom vonReichbauer — a move that further aligns Quilt with the consumer-centric, design-forward ethos that made Nest a household name.

Quilt has deployed nearly 1,000 units across 16 U.S. states and five Canadian provinces, according to CEO Paul Lambert. While the footprint remains small relative to industrial giants producing millions of systems annually, the company’s ability to scale installations at this stage reflects strong early-market adoption for premium, software-integrated HVAC solutions.

A Software-First Strategy in a Hardware-Heavy Industry

Heat pumps have become central to North America’s decarbonization plans, but the industry remains defined by hardware-heavy engineering, complex installation logistics, and limited consumer differentiation. Quilt is attempting to shift this paradigm through a software-first approach, positioning itself closer to a smart-home technology platform than a traditional HVAC supplier.

A recent over-the-air update that boosted the performance of installed units by over 20% exemplifies the strategic edge Quilt aims to cultivate. In an industry where performance gains typically require physical upgrades, remote improvements represent a distinctly Silicon Valley take on climate technology — one that mirrors how Tesla and Nest reshaped their respective markets.

By coupling design-forward aesthetics with a modular control interface and app-based system management, Quilt is targeting consumers who expect digital intelligence and customizability in every major home device. This positioning also enables the company to capture higher-margin recurring revenue through software enhancements, energy optimization features, and integrations with utility demand-response programs over time.

Competitive Landscape and Market Momentum

The U.S. heat pump market is expanding rapidly as policymakers push for home electrification and utilities prepare for long-term grid decarbonization. Yet incumbents continue to dominate distribution networks and installer relationships — major barriers for any new entrant. Quilt’s challenge is not simply to build better hardware but to convince contractors, homeowners, and utilities to adopt a different paradigm for climate control.

The addition of leadership with Nest experience, combined with strong venture backing, could help accelerate commercial partnerships and brand recognition. However, execution will be critical as the company scales from early adopters to mainstream residential customers, where price sensitivity and installation logistics become far more complex.

Looking Ahead

With fresh capital and strategic board additions, Quilt enters 2026 with momentum and expectations. The company’s ability to expand manufacturing, reduce installation friction, and deliver ongoing software improvements will determine whether it can become the first major challenger to entrenched HVAC players in decades. As electrification accelerates, investors will be watching whether Quilt can translate its design and software advantages into market share at scale.