HomeFundingBerlin-based VARM gets €5.7 million to bridge the skills gap in insulation...

Berlin-based VARM gets €5.7 million to bridge the skills gap in insulation efforts

VARM, a pioneering insulation startup, has announced it has secured €5.7 million in seed funding, led by Emerge and Pale Blue Dot, with additional support from noa (formerly A/O), Foundamental, and previous angel investors. This investment will significantly advance VARM’s mission to decarbonize Europe by revolutionizing the insulation industry.

Founded in 2023 by serial founders Christian Gruener and Sebastian Wuerz, VARM has swiftly emerged as a leader in the insulation sector, focusing on bridging the skills gap that hampers large-scale insulation efforts. By training new installers and connecting them with homeowners, VARM aims to dramatically reduce carbon footprints and enhance energy efficiency across Europe. This funding round will enable VARM to expand its “Cloud Installers” initiative, offering a comprehensive business-in-a-box solution that empowers workers to start and scale their insulation services effectively while addressing the skills gaps in the European craftsman sector, which already lacks 3 million skilled workers.

Heating alone accounts for nearly a fifth of CO₂ emissions in Germany, where VARM is initially operating. Across the EU, three quarters of all buildings are deemed energy inefficient, while the built sector causes more than a third of energy-related emissions. The professional insulation of a single-family home can save up to 50% in energy consumption, and yet only 1% of buildings are renovated to become more efficient each year.

“In the next 10 years, we have to transform high emissions buildings to become energy-efficient. The most effective way to do this is insulation and not heat pumps or solar,” said Christian Gruener, Co-founder and CEO of VARM. “This is why we build a scalable infrastructure for insulation. This funding will help us expand and innovate, making insulation more accessible and affordable for everyone.”

VARM’s affordable insulation approach addresses the crucial need for energy-efficient buildings, which are essential for meeting Europe’s climate goals, while also taking account of limited household budgets during times of global economic instability. By connecting a local workforce of independent insulators with its insulation technologies, VARM aims to fuel the future of insulation. With their current focus on air-gap insulation (also known as cavity wall or blown-in insulation) VARM not only improves insulation efficacy but also reduces installation time and costs, making it a more attractive option for homeowners and businesses alike. 

Heidi Lindvall, Partner at Pale Blue Dot, addedl: “We believe that VARM’s innovative approach to addressing the insulation skills gap can have a massive impact on reducing household emissions across Europe. Their vision aligns perfectly with our mission to support startups that are combating climate change.”

Mario Barosevcic, Partner at Emerge,commented: “Training new installers not only addresses the immediate demand for skilled workers but also provides long-term career perspectives by democratizing access to opportunity. We’re excited to support Christian and Sebastian in their journey to create a more sustainable future.”

Stefano De Marzo
Stefano De Marzo
Stefano De Marzo is the Head of News at EU-Startups. He has been extensively covering startups, venture capital and innovation ecosystems, including contributions to numerous publications such as Sifted, Entrepreneur and Forbes. Through his work as an editor and writer, he continues to shape the narrative surrounding the best stories of the tech world.
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