VARM, a Berlin-based insulation startup, has secured €5.7 million in seed funding. The round was led by Emerge and Pale Blue Dot (invested in Climate X and Ember), with additional support from noa (formerly A/O), Foundamental, and previous angel investors.
This investment will advance VARM’s mission to decarbonise Europe by revolutionising the insulation industry.
Heidi Lindvall, Partner at Pale Blue Dot said: “We believe that VARM’s innovative approach to addressing the insulation skills gap can have a massive impact on reducing household emissions across Europe. Their vision aligns perfectly with our mission to support startups that are combating climate change.”
Mario Barosevcic, Partner at Emerge said: “Training new installers not only addresses the immediate demand for skilled workers but also provides long-term career perspectives by democratising access to opportunity. We’re excited to support Christian and Sebastian in their journey to create a more sustainable future.”
What challenge does it tackle?
Heating alone accounts for nearly a fifth of CO2 emissions in Germany. Across the EU, three quarters of all buildings are deemed energy inefficient, while the built sector causes more than a third of energy-related emissions. The professional insulation of a single-family home can save up to 50% in energy consumption, and yet only 1% of buildings are renovated to become more efficient each year.
VARM is dedicated to driving household decarbonisation through innovative insulation solutions.
What does the company do?
VARM was founded in 2023 by second-time founders Christian Gruener (longevity supplements startup Vitalon) and Sebastian Wuerz (co-living startup homefully).
It’s affordable insulation approach addresses the crucial need for energy-efficient buildings, which are essential for meeting Europe’s climate goals, while also taking account of limited household budgets during times of global economic instability.
The company makes it easier for German homeowners to access cavity wall insulation installation, protect their homes from heat and the cold and reduce energy costs and CO2. It aims to fuel the future of insulation. Besides improving insulation efficacy, it also reduces installation time and costs, making it a more attractive option for homeowners and businesses alike.
In addition to this, the company has created a training academy for installers and will also offer them a business-in-a-box solution to support them in starting their own business.
“In the next 10 years, we have to transform high emissions buildings to become energy-efficient. The most effective way to do this is insulation and not heat pumps or solar.” said Christian Gruener, Co-founder and CEO of VARM. “This is why we build a scalable infrastructure for insulation. This funding will help us expand and innovate, making insulation more accessible and affordable for everyone.”
What do we think about VARM?
The recent €5.7 million seed funding sets the stage for significant growth in Europe’s insulation market. By addressing the insulation skills gap and offering affordable, efficient solutions, VARM is poised to make a substantial impact on reducing CO2 emissions. It’s training academy and business-in-a-box model will expand the workforce, driving widespread adoption. With a clear vision and innovative approach, VARM is well-positioned to lead in household decarbonisation efforts.
