April 25, 2023
Hello friends,
As a refresher, Cadence OneFive is building a market network (Momentum) to speed up decarbonization of multifamily buildings by solving the information asymmetries and trust gaps between lenders, owners, and contractors.
$103K new ARR since January
Monthly gross burn: $120K
Runway: 18 months
We’re a hit with green banks: landed three of the top 5 Northeast green lenders: New York Green Bank, Inclusive Prosperity Capital, and Community Preservation Corporation(CPC).
Expanding to all of NY State: Momentum is now the backbone of New York State’s $250 million electrification program for low-income multifamily buildings, administered by CPC. Transaction fees for this program are expected to total $80,000 in 2023.
Accelerators: completed the MassChallenge/Kaplak Decarbonization Accelerator; currently participating in the Newlab cohort of the NYC Founder Fellowship and the City Fellowship by Company Ventures; down-selected to pitch at the Greentown Labs pitch day in May for Lawrence Berkeley National Laboratory’s IMPEL accelerator.
Fundraising: Round is progressing slower than we’d hoped, but we’ve passed the half-way mark on commitments and we’re in due diligence with several strategic and institutional investors.
Product: Development capacity continues to be constrained as we pursue our raise. For the short-term, we’ve brought on Jeremy Parker, an experienced front-end developer, on a part-time consulting basis, and added a fantastic graduate CS intern, Minghan Zhu.
Ramping up construction to address both housing quality and carbon performance is a key climate justice issue. We believe the IRA funding for multifamily could catalyze climate-responsive construction well beyond this decade. The U.S. Environmental Protection Agency has just announced the program design for the $27B Greenhouse Gas Reduction Fund (GGRF):
$20B will be granted to national and regional non-profit intermediaries that leverage public funding to attract private funding and advance green energy or efficiency projects. $6B of this total is earmarked for activities in low-income and disadvantaged communities.
GGRF is one reason why our customers are asking us to move faster! As mentioned in our highlights, we have closed with three of the top five green banks in the Northeast and we continue to gain traction with funders of multifamily retrofits. We applaud the advancements in funding, which, combined with IRA tax credits, may be the largest infusion of capital into multifamily housing in a generation.
For more info:
How to Make the Most of the Greenhouse Gas Reduction Fund (Quantified Ventures)