Green Fusion, a Berlin-based startup specialising in the digitisation and optimisation of heating systems for apartment buildings, has successfully closed a €12 million Series A funding round.
The round was led by HV Capital and XAnge, with contributions from other notable investors such as BitStone Capital, Übermorgen Ventures, kopa ventures, Vireo Ventures, and Brandenburg Kapital.
“The heating transition doesn’t require mandatory renovations but intelligence. With smart heating optimisation, we immediately save CO2 and energy,” said Paul Hock, Founder and CEO of Green Fusion. “Almost no heating system in Germany operates optimally, with 80% still in their original factory settings. Costs and CO2 are being wasted, although small measures could have a significant impact. With our solution, we can make heating systems more efficient from day one and prepare them for the transition to heat pumps.”
Founded in 2021 by Paul Hock, Green Fusion aims to establish itself as a frontrunner in tackling inefficiencies in heating systems. Its AI-powered software monitors heating systems in real time, identifies inefficiencies, and implements adjustments to save energy costs and reduce carbon emissions.
On average, housing companies using Green Fusion’s solution report a 16% reduction in heating expenses, equating to over €233,000 annually for a portfolio of 100 heating systems after installation and software costs – according to data supplied by Green Fusion.
Prominent housing organisations such as Gewobag, Rheinwohnungsbau, and Spar- und Bauverein Dortmund are already among Green Fusion’s clientele. Altogether, the company serves more than 100 housing companies managing over 800,000 rented apartments.
The fresh funding will accelerate Green Fusion’s growth plans, which include equipping 3,000 apartment buildings with its solution by 2025—representing a 300% increase in adoption.
The capital will also support the startup’s European expansion into markets such as France and the Benelux region. Additionally, a dedicated unit will focus on integrating renewable energy systems into its technology to future-proof heating infrastructures.
“The combination of artificial intelligence, real-time data analysis, and clear customer benefits has made Green Fusion a market leader in no time. We are confident that this company will set the international standard for heating monitoring and optimization. We see the perfect balance between economic scalability and sustainable impact here. Green Fusion has the ability to decisively drive the heating transition in Europe,” says Valerie Bures, Managing Director & Partner at XAnge.
Green Fusion argues that Germany’s push for climate neutrality by 2045 and rising CO2 prices have created mounting pressure on the housing sector to adopt sustainable practices. While traditional solutions like full-scale building renovations are costly and time-intensive, Green Fusion aims to offer an economical and minimally invasive alternative.
“Green Fusion is the game-changer the industry needs to meet the decarbonization challenges of the heating sector. We believe the company has the potential to become the market leader not only in Germany,” says David Kuczek, General Partner at HV Capital.
According to a recent survey by the industry association GdW, Green Fusion has already become the market leader in heating monitoring and optimisation just three years after its founding.
Axel Gedaschko, President of the association, added: “Optimising energy consumption is an important first step toward climate goals – even before installing heat pumps, switching to district heating, or implementing other energy-saving measures. Only by taking cost-effective, smart approaches can German housing companies continue to offer affordable housing in the long term.“
Read the orginal article: https://www.eu-startups.com/2025/01/green-fusion-secures-e12-million-to-further-develop-heating-systems-and-fuel-its-growth/
