Let’s face it: Most people are not early adopters, especially when it comes to their homes. Take the kitchen, for example, where many people still buy gas hobs despite the superiority of induction. Not because everyone is busy charring peppers over an open flame — but because they are slow to embrace change.
As for heating and cooling, it’s a climate issue. Together they represent approx half of all energy consumption in US homes. Heating is a particular challenge, as only 40% of homes use electricity; the rest burn natural gas, propane or another fossil fuel. When the old furnace dies, its replacement is usually the same. To reduce dependence on fossil fuels, switching to electric heat pumps will be key.
“If your trusted contractor—the one you call to come to your home to help you figure out what to do with your system—doesn’t offer a heat pump, you’re just not going to buy one, right?” said Anuj Khanna, founder and principal executive director of Service 1st Financial.
This gap between what contractors offer and what is needed to electrify households is part of the reason Khanna founded Service 1st Financial, which offers what he calls “home comfort as a service.” The company is announcing a $5.85 million Series B round today, which includes $15 million in subordinated debt, TechCrunch has learned exclusively. Hanna said he expects the Series B to close “before the end of the year.” The equity investment was co-led by S2G Ventures, which also led the subordinated debt facility. Other investors were not disclosed.