European regulators are driving forward with ambitious plans to promote cleaner energy. As part of the ambitious REPowerEU strategy, a significant increase is planned, with an additional 10 million warm pumps to be installed by 2027, while solar panel adoption continues its upward trajectory.
While many installations are carried out by smaller firms that may achieve greater efficiency through streamlined workflows.
This is where you can find a German startup. According to co-founder Tristan Menzinger, “Our company empowers eco-conscious renewable installers by providing them with cutting-edge planning and workflow software, allowing them to operate exceptionally sustainably.”
Three colleagues – Menzinger, Lars-Manuel Schneider, and Udo Sill – who collaborated at an research institute focused on investigating renewable energy implementation, are situated in the center of the provided image. While it initially piqued their interest to launch Reonic, a more thorough examination of practical applications was necessary to close the gap between concept and reality. Installers sought a seamless, all-encompassing software solution rather than disparate tools.
Startups across various sectors have arrived at a similar realization: that altering user behaviors can be challenging, especially when those habits are deeply ingrained. Reonic’s promise is to increase the value of their service by empowering installers to work more efficiently and effectively, ultimately driving faster and higher returns. “‘By integrating warm pump systems with photovoltaic technologies, you’re effectively doubling your sales potential,’ Schneider noted.”
Unlike some rivals specializing in narrower niches, such as solar power alone, Reonic’s focus lies in renewable energy as a whole, encompassing photovoltaics, energy storage systems, wallboxes, and heat pumps. Beyond the initial installation phase, the primary objective becomes individual energy self-sufficiency for both families and enterprises, according to Schneider. “What’s constant across our entire product range is the reliability and consistency you can count on, no matter where you are in the world.”
Renewable energy’s accelerated adoption pace seems to strike a chord with investors; as part of its pan-European expansion strategy, Reonic has secured a €13 million Series A round led by Northzone, with existing backers Level 9 and Puzzle Ventures also participating in the investment.
Venture capitalists’ preferences are aligning with their go-to-market strategies, as they prioritize investments in established technologies over groundbreaking innovations that pose scientific threats.
Despite this, the market remains a significant ongoing threat. Aurora Photo voltaic, a U.S. Company securing software solutions for solar installers to streamline sales processes, having recently secured a significant funding of $523 million.
Despite securing €16 million in funding and assembling a team of 21 members, Reonic bears an uncanny resemblance to smaller companies like that have achieved similar successes.
The company has achieved significant growth, with recurring revenue more than tripling over the past six months, a hallmark of early-stage businesses that have found a profitable product-market fit. “While acknowledging progress made over the past three years, Schneider expressed optimism that their true potential has yet to be fully realized, suggesting a sense of excitement and anticipation for what’s to come.”
Despite varying subsidy structures and regulatory environments across nations, Reonic’s global expansion is driven by the conviction that it can successfully enter new markets without requiring significant customization efforts. Following its success in the DACH region, the company expanded to France, with a soft launch also taking place in Italy, according to Menzinger, who played a key role in overseeing the venture’s progress.
Despite remaining headquartered in Augsburg, Bavaria, nearly half of the company’s workforce is now based in Berlin, where a second office was established earlier this year to streamline global talent recruitment – a crucial component in funding their latest expansion round.
