1Komma5Grad hits $1.35 billion valuation in new funding round

German startup 1Komma5Grad has secured a $1.35 billion valuation in a new financing round, according to a report by The Economic Times.

The Hamburg-based company, founded in 2021 by Jannik Schall, Marco Schager, Simon Schandert, Fridtjof Heitzmann and Philip Siefer, becomes one of the few German climate tech firms to cross the billion-dollar threshold. The round signals continued investor appetite for European energy-transition companies despite a broader slowdown in late-stage venture funding.

Who is 1Komma5Grad?

1Komma5Grad builds software and hardware to optimize decentralized energy systems. Its core product, Heartbeat, is an AI-driven platform that manages solar panels, heat pumps and electric-vehicle chargers as a single intelligent energy system for households.

The company also operates a network that acquires and consolidates sales and installation businesses in the solar, heating and mobility segments — a roll-up strategy designed to build scale in the fragmented market for home electrification.

What does the new valuation mean?

The $1.35 billion valuation places 1Komma5Grad among Europe's most valuable climate startups. The figure represents a step up from its previous funding milestones, when investors including Piton Capital, Energiiq, Founders Fund, Twelfth Earth and Porsche Ventures backed earlier rounds.

A valuation above the billion-dollar mark typically unlocks access to a deeper pool of capital and strengthens a startup's position in acquisition talks — relevant for a company whose growth model depends on buying regional installers.

Why it matters now

Europe's push to decarbonize home heating and transport has created strong demand for integrated energy management. Startups that can bundle solar, storage, heat pumps and EV charging under one software layer are competing for a market that regulators are actively expanding through building-efficiency mandates.

For 1Komma5Grad, the new capital and valuation arrive as the company scales its Heartbeat platform across its acquired installer network — the test of whether consolidation plus AI-driven energy optimization can produce sustainable unit economics.