Reshape Energy uses an acquisition game book to generate energy upgrades for commercial real estate

Reshaped energy I bet on a more integrated approach to accelerate the decarbonization of the built environment. Founded in Munich, Germany, in May 2024, the startup is led by a team with energy-scale energy companies, including the German division of the Platform for the Comparison of Octopus Price and Verivox energy. It focuses on the sale of energy system upgrades to commercial real estate, targeting the owners with buildings of buildings.

Carbon emissions from heating buildings contribute considerably to climate change. Consequently, accelerating the transition to lower heat management forms, such as heat pumps and solar panels, is a key element of climatic objectives. Therefore, why, in Europe, there is considerable regulatory pressure applied to building owners to make energy improvements.

At the same time, access to the specialized skills necessary to carry out these energy upgrading projects – or even understand what must be done to optimize a particular building – can slow the momentum to install solutions with low carbon content.

Reshape Energy hopes that a single counter model will help evacuate part of the system friction – from the German market but with its eye on expansion elsewhere in Europe because it evolves the approach.

Approach the inertia of energy upgrade

“Why not happen” was a key question that the founders launched when they thought how to structure a business targeting commercial buildings with energy upgrades, CEO and co-founder, Benjamin Stanzl told Techcrunch.

“We have seen a lot of momentum on [energy upgrades for] Unifamilial houses … But when you look at commercial real estate, which is really our goal is very, very slow, “he says. “The biggest [competitive] The threat is definitely the option “do nothing”. »»

The reasons why the sector has been so slow on absorption is complex, he suggests-it is not a missing single piece which, for example, a new piece of technology could repair; It is rather the systemic complexity of orchestrating all the different bits necessary to successfully deliver such projects which retain the pace of change.

“The complexity of the execution of these projects is incredibly high,” he says. “Owners of commercial properties simply do not have the expertise. And some of them do not even want to face it, because it is not their core business. »»

Stanzl also points out that construction is a sector that depends on confidence – so a low level of confidence can also slow down progress.

The startup faces this inertia of energy upgrade via an acquisition model which sees it buy existing companies in the sector to provide key capacities and internal customer relations – offering an energy -optimization offer as a service.

The idea is to cover all the stages of a project – initial assessments and to determine what is necessary, to install new systems and to current maintenance and maintenance. It also includes financing when customers want to distribute the cost at the installation of new energy systems.

By covering the complete chain of what is necessary for an energy upgrade, the startup believes that it can unlock efficiency of scale while relying on (and by taking advantage of confidence customer relationships. It comes out of the partitioned workflow which more generally characterizes the sector, by Stanzl.

He says that the startup has taken more fragmentary energy upgrade project works so far, attached to the capacities it has brought to the house. But the idea is to continue to extend what it can offer and work to undertake projects with many mobile parts and much higher complexity – let’s say, such as district heating facilities – while they continue to develop the business.

Financing injection

Reshape has already made acquisitions to build its offer. Others are on maps – and the company will use part of a new financing cycle of 5 million euros for this purpose, its first external capital increase.

By purchasing smaller, often regional companies, it can shorten the acquisition of customers and connect to relationships and contact that these other companies have raised over the years, as well as the integration of key skills to deliver projects. An acquisition model also gives it total control where and how the skills are deployed, explains Stanzl.

“During the life of these companies, they served hundreds if not thousands [of customers]”, He notes that the reshaping of companies has implemented. So far, he has created an energy consulting company and a commercial solar planning, installation and maintenance company.

“The control part is essential, because we need these companies to work all together-and we need them to use common systems and common technologies,” he adds, sketching their strategy to unlock the efficiency of projects by pooling confidence and risks.

The founders put their money where their mouths are located, contributing to some of their own funds to the increase of 5 million euros, which is vaguely labeled as a seed lap. Although Stanzl says they are not convinced that a typical venture capital funding model is for them, other approaches, such as investment capital, could be better suited.

The other investors in the Round include Postcriptum Ventures, Vireo Ventures and certain nameless industrial initiates.

Different models

Germany has experienced a boom of energy upgrade startups in recent years, after the invasion of Ukraine by Russia in 2022 and the peak of the drop in gas prices. But the first wave of energy upgrade activity – a large part of which was focused on the unified houses – which followed this shock “definitively calmed”, explains Stanzl.

Space players are more encouraged to get out of their tracks and adopt a more attached approach to provide the next wave of upgrades, he said. In turn, it makes it possible to meet more complex challenges such as commercial real estate upgrades.

“You cannot deploy the heat pump if you do not know what the electrical infrastructure of a building is, right?” And if you do it, all of a sudden, you can promise your customer a lot of savings, then it comes back and you realize that they must upgrade their transformer or something like that. Then all your savings are through the window, ”he suggests.

“So I think that a certain number of people realize that if they are somehow focus on their small silo, it is no longer enough.”

The model of supply reshape of energy optimization services to buildings of buildings seems more effective in capital than certain other approaches – such as those which imply the purchase of real estate to transform themselves via the modernization of its energy infrastructure.

German startup ReneoFor example, he recently closed a funding tour of 600 million euros to build another decarbonization game, but which implies that he was buying target real estate to improve. Although, on the other hand, Reneo’s property model means that it is positioned to benefit from any increase in property value – while Reshape remains purely a service provider, but with much lower capital requirements to run its activities.

Stanzl says that when they developed the company, they planned to take the property – which would have meant need to do things like the management services of goods and tenants – but they decided that it was not at the heart of the energy transition mission. He also points out that commercial property owners may not want to sell their buildings – which would have created obstacles to scaling.

Another element which is often associated with energy transitions is the upgrading of building insulation, as better insulation can be a boon for the performance of the energy system. Asked about this, Stanzl says that even if they can provide it, they do not necessarily look for it ” – again, because this can amplify the complexity of the project.

They also categorically decided not to get involved in the aesthetic improvement of buildings.

“We are focused on energy, right?” We want to look at the energy infrastructure and the energy fabric, ”he says. “So the problems [for target customers] Are more… How can we use waste heat? How do you optimize this, with cooling loads-less around “How do you isolate the walls?” »»