Investing in vreed

With vreed we are investing in a tool that uses digital twins to analyze a buildings energy efficiency and plan refurbishment within minutes. This dramatically improves a lenders ability to approve green loans and thus boosts the drive for an energy efficient building sector that (over)achieves CO2 reduction targets.‍

The building sector plays a crucial role if the EU wants to reach CO2 neutrality by 2050. In March 2023 the EU Parliament has voted to make it mandatory for each and every building to be renovated and conform with at a minimum energy efficiency class “D” by 2033. According to a study by the Fraunhofer Institute for Building Physics, approximately 70% of buildings in Germany were constructed prior to the implementation of the first thermal insulation regulations in the mid-1970s. As a result, around 50% of buildings in Germany were not originally designed to be energy-efficient. It does not surprise therefore that Germany’s state development bank KfW expects the cost for climate-friendly renovation in line with EU regulation to surpass 250 billion Euros. A big chunk of that will have to be financed through green loans.

This in mind vreed built a solution which banks can provide to their mortgage agents enabling them to provide transparency on condition and the potential energetic impact of various refurbishment measures in a matter of minutes. It avoids initial on site visits and the lengthy search for an energy consultant speeding up the process considerably. Ultimately, banks can customize a financing offer, help their clients to optimize for public funding opportunities and lay the foundation for their own ESG reporting.

Building on a combined 40+ years of industry experience Thomas and Jan have created a software that leverages complex calculation models and granular data sources to assess refurbishment projects with the entry of just twelve data points and no necessary prior domain expertise. In the process each building gets a digital twin, that is maintained and strengthened continuously allowing to integrate further promising use cases in the near future. Their current solution has already shown to meet demand having recently been adapted by LBS Südwest and its 580 mortgage consultants.

We are excited to be entrusted with leading this pre-seed round together with angel investors from Germany and Norway!