September 29, 2024
Phew! That was a huge Climate Week! Here’s a look-back on our Q3:
As a reminder, Cadence OneFive is building a B2B SaaS-enabled marketplace for decarbonizing multifamily buildings—a $300B market in the making. We streamline retrofit workflows, deliver hard-to-acquire market data (including pricing), and match shovel-ready projects with capable specialist contractors. Our current customers include the Related Companies, ConEdison’s rebate program in NY, and NY State’s multifamily electrification program.
Cadence OneFive is one of VERGE24’s 25 Climate Tech Startups to Watch in 2024! If you’ll be at VERGE this year, please be sure to sign up for the Startup Happy Hour for investors to meet all 25 finalists! The event is on Wednesday, 10/30, 5:30 - 7pm in the expo hall.
Demonstrated the value of our 0-day preliminary scope of work: In Q3 NYC affordable housing buildings generated 340 decarbonization plans to meet their Local Law 97 obligations. Customers tell us our scopes are just as useful—often better—than audits costing tens of thousands of dollars, and they’re available immediately, not 6 months later. We’re continuously improving our scope builder based on feedback!
Validating our transaction value-add: Our first contractor procurement test slashed the bid process time by 93% (6 weeks to 2 days) while decreasing bid variance by 75% (40% to 10%). The second test (for Related Affordable) further reduced bid variance to 5%. We’re now on our third tranche of bids, with eager contractor participation.
Preparing for national roll-out: We’re gearing up to support 10 additional multifamily markets in 2025. This involves:
With the Greenhouse Gas Reduction Fund now committed, we’re anticipating a busy Q4 as GGRF grantees procure their tools.
Move from subscription to transaction revenue: We believe customer willingness to pay is much higher at the project level (transactions) than as part of a tight expense budget. We stopped pursuing direct sales to real estate, so subscription revenue growth has flattened. However, our transactional revenue experiments are going great!
Pioneers are a small group: Our current subscription customers are sustainability pioneers developing next-gen capital planning practices, and at the leading edge of an emerging practice. While we’re excited work with them as design partners, we’re doubling down on our core strategy of meeting retrofits where they are – usually standing in line for capital. Our experience with ConEd and NY’s green lenders gives us a unique advantage in building a large top-of-funnel where the action is happening now.
We’re actively raising our Seed round. The multifamily market, already spending $65B annually on rehabs, is poised to grow 5x by 2030 due to:
We’re positioned to meet this surge—with early proof in NYC, the nation’s largest multifamily market. If you’re an early-stage investor as excited about this future as we are, reach out now for our Seed opportunity.