Commercial real estate owners face a massive challenge today. They are under immense pressure to lower energy bills and hit tough climate goals quickly.
London-based software startup xWatts has just secured £1.6 million to help solve this problem. Their smart technology takes control of building energy systems to cut waste and carbon emissions automatically.
A Major Boost for Smart Energy
This fresh round of seed funding marks a significant milestone for the company. It allows them to scale their operations across Europe immediately.
The investment was led by Cambridge Enterprise Ventures. This group is known for backing high-impact technology companies.
Other key players also joined the round. This includes Cambridge Angels, Parkwalk and R42. Their participation signals strong market confidence in the solution xWatts offers.
The company plans to use this capital to refine its predictive control software. They will also expand their team to support more clients in the UK and Europe.
Yigit Akar, the CEO and co-founder of xWatts, shared his vision for the company’s future.
digital building energy management system interface on screen
“Our aim is to decarbonise complex real estate in an intelligent, automated, and scalable way. Rather than only providing insights, our platform actively manages energy systems.”
This distinction is crucial for building managers. Many existing tools only show data on a screen. xWatts actually does the work to fix the issues it finds.
Moving Beyond Passive Data
Most buildings today rely on outdated management systems. These systems are often manual and react slowly to changes in weather or occupancy.
xWatts changes the game by connecting directly to the Building Management System (BMS). It acts like a digital brain that sits on top of existing hardware.
The software uses advanced machine learning to predict energy needs. It looks at factors like weather forecasts and how many people are inside the building.
Here is how the platform stands out from competitors:
- Real-time adjustments: It changes settings instantly without human help.
- Predictive modeling: It prepares the building for heat or cold before it happens.
- Direct control: It manages HVAC, solar and heating units automatically.
- Asset coverage: It works on complex sites like hospitals and factories.
This approach transforms a “dumb” building into a smart asset. It does this without requiring expensive new hardware installations.
Managers no longer need to constantly tweak dials. The AI handles the complex math to find the sweet spot between comfort and cost.
Targeting Energy-Hungry Sectors
Not all buildings consume energy in the same way. Some facilities burn through power 24 hours a day.
xWatts is specifically targeting these high-consumption assets. They are focusing on healthcare facilities, pharmaceutical labs, higher education campuses and industrial sites.
These buildings have complex needs. A hospital cannot simply turn off the power to save money. Air quality and temperature must remain precise for patient safety.
The software ensures these strict operational rules are met. It finds savings only where it is safe to do so.
This is vital for Europe’s industrial sector. Energy costs have skyrocketed in recent years. Any reduction in waste translates directly to the bottom line.
The technology has already shown results in early deployments. Users in manufacturing and education report lower bills and reduced carbon footprints.
The Push for Net Zero Real Estate
The timing of this technology could not be better. The world is racing to reduce carbon emissions to combat climate change.
Real estate is a massive part of the problem. Buildings are responsible for a huge chunk of global carbon emissions.
governments are tightening regulations. In the UK and Europe, building owners now face fines if they do not meet energy efficiency standards.
xWatts offers a fast track to compliance. Retrofitting a building with physical insulation is slow and expensive. Installing software is fast and scalable.
Investors see this potential. Anne Horgan, a partner at Cambridge Enterprise Ventures, noted the importance of the technology.
She explained that the built environment contributes significantly to emissions. Solutions that can be deployed quickly are essential for the transition to Net Zero.
This software-first approach solves a hardware problem. It allows older buildings to perform like modern ones.
How the Technology Works
The core of the xWatts solution is its ability to learn. It creates a “digital twin” of the facility.
This digital model simulates how the building behaves under different conditions. The AI runs thousands of scenarios to find the best strategy.
It balances generation and demand seamlessly. If a site has solar panels, the software decides when to use that power or store it.
It integrates with various subsystems:
- HVAC Units: Controls heating, ventilation and air conditioning.
- Renewables: Manages solar and wind inputs.
- CHP Systems: Optimizes Combined Heat and Power units.
This level of integration is rare. Most systems operate in silos. The lighting system rarely talks to the heating system.
xWatts bridges these gaps to create a unified energy strategy. This results in a smoother operation and less strain on the equipment.
Equipment lasts longer when it is not constantly ramping up and down. This saves owners money on maintenance costs too.
Future Plans for Expansion
The £1.6 million funding is just the start. The team has ambitious goals for the next phase of growth.
They plan to deepen their presence in key European markets. Germany, France and the UK are prime targets due to their large industrial bases.
The company is also looking to enhance its AI capabilities. They want to make the system even smarter at predicting complex energy patterns.
Recruitment is a top priority. They are hiring engineers and data scientists to build out these new features.
This growth will help them serve larger portfolios. Real estate funds with hundreds of buildings need a solution that scales across all assets.
xWatts provides a centralized view for these owners. They can see performance across their entire portfolio in one place.
The focus remains on “active management.” This philosophy sets them apart in a crowded market of passive dashboards.
As the energy crisis continues to impact businesses, tools like this move from “nice to have” to “essential.”
The shift toward automated, intelligent buildings is undeniable. xWatts is positioning itself at the forefront of this green revolution.
With strong backing and a clear mission, they are ready to help the real estate sector clean up its act.
The £1.6 million seed round is a strong vote of confidence. It proves that software will play a pivotal role in saving our planet.
Do you think AI is the key to solving our energy crisis? Let us know your thoughts in the comments below
