Bloomington Startup 75F Lands $5M Raise from Siemens
Bloomington-based HVAC technology startup 75F Inc. on Thursday announced that it has landed another $5 million in a Series A funding round. That brings the company’s total raised to $28 million.
The latest investment comes from Germany-based engineering giant Siemens AG.
75F’s technology relies on sensors to help keep commercial buildings at a comfortable temperature. The company, which employs 130 people around the world, plans to use the funds from Siemens for new product development, said 75F cofounder and CEO Deepinder Singh.
Singh said he also intends to use some of the money to fill at least 11 more open positions in Minnesota. Today, 42 of the company’s employees work at its Bloomington headquarters.
Currently based in Bloomington, 75F was founded in 2012 in Mankato. The company later relocated to Burnsville, eventually landing in Bloomington.
Ongoing concerns about climate change, coupled with the Covid-19 pandemic, have “really raised awareness about building health and indoor air quality,” Singh said. That, in turn, has driven demand for 75F’s products.
Building Ventures, a Boston-based venture capital firm that’s already invested in 75F, introduced Singh and his team to Siemens. “They thought Siemens would be a good strategic partner to include in our funding,” he said.
Siemens sells similar “smart” HVAC products for commercial buildings, but on a much larger scale: 75F’s products can operate in properties up to 250,000 square feet in size, while Siemens’ products work in properties exceeding 1 million square feet, according to Singh. “Siemens saw us as a complement to their large building offerings,” he said.
“What we found is that Siemens’ vision for the future very closely aligned with ours,” Singh added. “In general, I’m leery about taking investment from strategic partners, but we just felt it was a very complementary vibe.”
75F already counts a number of notable names among its investors. In September 2019, the company announced that it landed $18 million from investor group Breakthrough Energy Ventures, which includes Bill Gates and Amazon founder Jeff Bezos. Then, in March of this year, the company raised another $4.75 million San Francisco-based WIND Ventures.
And back in 2014, just two years after the company launched, 75F won the Minnesota Cup, along with another pitch competition hosted by AOL co-founder Steve Case.