As cities worldwide grapple with the urgent need to reduce carbon emissions, one startup is positioning itself at the forefront of a real estate revolution.
Scaler, ESG software startup, has just secured €9.2 million ($10 million) in Series A funding to scale its ambitious mission: empowering real estate professionals to measure, manage, and dramatically reduce the carbon footprint of their assets.
The latest funding round, led by Plural with participation from previous investor Base10, signals a vote of confidence in Scaler’s approach and the growing demand for sustainable real estate solutions. As we delve deeper into how this capital injection will fuel Scaler’s growth and impact, one thing becomes clear: the future of real estate is green, and Scaler is helping to paint that picture.
Founded in 2021 and headquartered in the innovation hubs of Amsterdam and New York, Scaler is taking on a challenge that has long seemed impossible. With the real estate sector responsible for a staggering 40% of global emissions– with 70% coming from building operations and 30% from construction–the need for effective solutions has never been more critical. Moreover, the industry has ambitious Net Zero targets set for 2050; currently, only 2% of existing buildings can support this transition.
That is where Scaler’s cutting-edge ESG data platform finds itself useful. It offers a solution by providing real estate investors and asset managers with granular, actionable data across their entire portfolios. The tool allows users to identify problem areas, prioritise interventions, and create detailed roadmaps for improvements, such as retrofitting or installing renewable energy systems. Importantly, Scaler’s user-friendly interface makes it accessible to professionals, from CFOs to sustainability leads and property managers.
The impact of Scaler’s approach is already evident. The company serves 30 customers collectively, managing over $350 billion in assets. These clients have planned $840 million through the platform in improvement and retrofit measures. In 2022 alone, Scaler users reduced their carbon output by 15 million kilograms – equivalent to the annual electricity use of over 10,000 homes.
Zlatan Menkovic, co-founder and CEO of Scaler, emphasised the potential of global impact in their work: “If you want to have a global impact, there are few better places to start than the real estate industry. Investors are under pressure to decarbonise their portfolios, but to do this effectively, they need data, presented and analysed in a way that helps them make the best decisions for their clients and the world.”
The fresh capital raised will further develop Scaler’s product, grow its engineering team, and expand into new markets beyond Europe. This growth is crucial as the real estate industry faces increasing regulatory pressure and investor demand for sustainable practices.
Khaled Helioui, partner at lead investor Plural, highlighted the complexity of the challenge and Scaler’s unique position to address it: “Solving the real estate industry’s carbon problem is complex, when north of 60% of carbon emissions in major cities come from buildings and energy use is only increasing. In only a few years, Scaler has built the most compelling software solution to rapidly appraise investors’ ESG scores across their properties and outline concrete strategies to meet net-zero targets.”
Helioui also praised the expertise of Scaler’s founding team, noting Menkovic’s background in product management and data at Uber and van de Boom’s deep industry knowledge and involvement in creating the first ESG reporting standards for real estate.
As the real estate industry grapples with its environmental impact, Scaler’s data-driven approach may offer hope. With this new funding and the backing of experienced investors, the company is well-positioned to play a pivotal role in the sector’s sustainable transformation.
