Dive Brief:
- Andorix secured $40 million in debt and equity Tuesday and said it plans to accelerate the rollout of its fiber-based converged network to over 250 buildings in North America.
- Another smart building software provider, Clockworks Analytics, raised $16.1 million as it looks to expand its fault detection and diagnostics platform, which streams data every five minutes across more than 420,000 connected mechanical assets.
- Both fundraising efforts highlight growing demand for smart building infrastructure, analytics and control software, as facilities managers and building owners increasingly use the technology to balance maintenance duties and efficiency targets.
Dive Insight:
Clockworks’ platform, which connects to mechanical assets, is aimed at helping building operators identify the highest-priority energy, comfort and equipment issues in their facilities. The firm says it aims to use the capital to support further product development and strengthen its international footprint, noting that growing carbon prices, energy costs and ESG regulatory requirements make it well-positioned for expansion.
The company pointed to a 278% growth in its channel partner business in the past year as evidence of this growing need. Its clients across the healthcare, life sciences, high education and commercial sectors include Merck, MIT, Kaiser Permanente, Harvard University and GK Norway, according to its company news release.
Meanwhile, Andorix, a Toronto-based neutral host network provider and smart building systems integrator, has secured $40 million in financing, with an option of garnering an additional $35 million. The capital, provided by Voya Investment Management and HFR Networks, is expected to accelerate deployment of the company’s fiber-based network to over 250 buildings across North America, according to a separate release.
The smart-building technology suite Andorix developed includes a passive optical network, Wi-Fi, LP-WAN and cyber protection-as-a-service, and is implemented across more than 20 million square feet of retail and commercial real estate assets. The company said deployment of its technologies has generated capital expense savings of 40% to 70%.
In contrast to Boston-based Clockworks, which stated a focus on international growth amid energy costs in Europe, Andorix cited plans to channel the equity portion of its financing toward bolstering its workforce and expanding operations across North America.
Both fundraises underscore the escalating use of smart building technologies, ranging from sensors to full-scale integrated building automation systems, across the building operations and management industries. To that end, Clockworks expressed its long-term vision of being deployed in “every building that has a BAS system which could be further optimized.”
“Before we recommend anything, we recommend you hang that first sensor on the wall and make sure that the mechanical systems in their building are maintained properly,” Tyler Smith, vice president of healthy building at Johnson Controls, said in an interview. “From there, that's when data and smart building systems step in,” he said. Smith explained that once facility managers are collecting sensor information, smart building systems can then help them to better understand how to leverage that data.
“From that, cost and improvement trade-offs become more easily quantifiable, and they're able to make smarter decisions,” Smith added, explaining that smart building technology is becoming more crucial for facilities leaders and operators as they work toward creating more energy-efficient, healthy buildings.
