Zero Homes, a Colorado-headquartered provider of an end-to-end digital platform for residential home upgrades, has raised $16.8M in Series A funding led by Prelude Ventures. The company enables homeowners to create digital twins of their homes using a mobile app with video scans and photos. Users receive custom ACCA-certified designs for heat pumps and HVAC systems, transparent pricing, rebate incentives, and connections to vetted local contractors—all without in-home sales visits. The capital will support nationwide expansion.
The timing comes amid surging interest in home electrification following the Inflation Reduction Act's incentives for heat pumps. Investments in residential efficiency tech have accelerated, positioning Zero Homes to capture share in a fragmented market ripe for digital disruption.
$500B Home Improvement Market Faces Friction
The U.S. residential home improvement market exceeds $500B annually, with HVAC upgrades representing a significant portion amid rising energy costs and decarbonization mandates. Homeowners face high-friction processes: intrusive sales visits, variable pricing, and complex rebate navigation. Current solutions rely on manual assessments, leading to delays and 20-30% cost overruns post-contract.
App Scans Enable Custom Heat Pump Designs
Zero Homes differentiates with its mobile-first approach, generating precise digital twins for DOE-validated, ACCA-certified designs in minutes. Unlike traditional contractors or competitors requiring physical walkthroughs, it guarantees pricing changes under 5% after contractor verification. The platform also automates rebate matching, addressing key barriers to heat pump adoption.
As founder Grant Gunnison explained:
"We combine engineering precision with contractor expertise to make efficient home upgrades as simple as scanning your space with a phone."
This no-sales-visit model reduces customer anxiety while scaling installer capacity amid labor shortages.
Prelude Ventures Fuels National Rollout
Prelude Ventures, a climate-focused fund backing hardware-software hybrids, led the round, signaling strategic validation for Zero Homes' marketplace model. Other investors include prior backers, underscoring confidence in its traction across five states. The funding represents growth capital to digitize a labor-intensive industry, contrasting pure hardware plays.
Electrification Wave Drives HVAC Demand
The residential HVAC market, part of the $500B home improvement sector, is projected to grow as heat pumps become standard for efficient heating and cooling. Federal incentives via IRA have boosted demand, with installations up 40% in supported regions. Zero Homes' digital layer positions it ahead of legacy players slow to adopt tech.
While specific competitor funding details vary, the sector sees steady inflows, highlighting fragmentation by approach: financing-first vs. design marketplaces.
NASA Engineer Turns Family Trade Digital
Founded in 2022 by Grant Gunnison, a former MIT and NASA engineer from a multi-generational contracting family, Zero Homes bridges tech and trades. Gunnison's background ensures designs meet rigorous standards, with key hires from HVAC and software sectors bolstering execution.
Nationwide Expansion Accelerates Deployments
With the Series A, Zero Homes plans nationwide rollout, building on strong presence in Colorado, Minnesota, Massachusetts, Illinois, and California. App downloads and 4.7/5 Google ratings signal product-market fit, targeting broader builder partnerships and solar/insulation integrations.