The investing arm of the Rudin family, Rudin Ventures, also joined the funding round along with New York Angels, Cerium and MetaProp NYC. Enertiv employs fifteen people and has been running for about seven years. Its technology is in 200 buildings spread out over 30 states. Enertiv wants to grow its products and bring ten more employees on board with the funds. These new team members will include product engineers and data scientists over the course of a year.
“We know we have a great team, we know we are solving a problem that often gets overlooked, we know we are really far ahead in the [industry], it’s nice that that was finally acknowledged by some key players like Rudin and Fifth Wall,” a co-founder of Enertiv, Connell McGill, said in Commercial Observer.
Enertiv helps create meters, sensors and the software the interfaces with the “Internet of Things” as the system relates to buildings. They work to record data from utilities such as boilers, elevators, pumps, and refrigerators and exhaust fans. This gives landlords better information about the intricate workings of their properties.
Furthermore, Enertiv’s system can digitally monitor any specific equipment in a property, automatically alerting building managers to problems quickly so that they can repair them sooner. This system can also integrate with energy meters created by other companies.
Major real estate owners and developers including Hines, Lenner, Macerich and Rudin Management Company make up Fifth Wall’s partners. They are concerned with “energy consumption and energy savings,” according to Adam Demuyakor, a senior associate at Fifth Wall.
“In older office buildings, there is no management system or brain there, so it’s a ‘dumber building,’” Demuyakor said in CO. “Plugging Enertiv’s smart meter in, will turn them into ‘smart buildings.’ The potential for Enertiv is quite large.”
McGill said that Enertiv’s products have helped property owners cut back on their operating costs by about 5% while helping landlords run their buildings more smoothly.
“This is what helps differentiate one real estate company’s services and the experiences that they provide from others,” McGill said. “If they are able to preempt some of these issues—it’s too hot in this space, it’s too cold, there are odors, there is no hot water or the elevator is not working—if they are able to get ahead with our data that’s potentially 50 to 100 tenant complaints that aren’t coming in.”
Enertiv attracted the attention of Rudin because the latter is working on a similar concept called Prescriptive Data, a product of which is Nantum. Nantum gathers building data such as occupancy and electricity usage to assist in maintaining optimal indoor temperatures and energy use. The executives at Rudin say they want to figure out how to merge the work of Enertiv and Nantum.
“We were really impressed by [them] and think they have built and grown a really great company with a great product,” said Michael Rudin, a senior vice president of Rudin Management. “There are obviously a lot of buildings that are the right fit for what Enertiv is doing and that’s why we found it to be attractive. And maybe there is a way down the road that the technical teams [of Nantum and Enertiv] will collaborate.”