Lun, a cleantech startup based in Copenhagen, raised $11.2 million in seed funding in March 2023. The round was led by Norrsken VC and Partech, with participation from Lowercarbon Capital, MCJ Collective, and existing investor Fundamental. The company, led by Martin Collignon (CEO) and Anders Valentin (COO), is developing a software platform designed to help heat pump installers and distributors sell, size, and install these systems with fewer on-site visits.
Heat pumps: the cornerstone of residential decarbonization
Buildings account for roughly 36% of CO2 emissions in Europe and 40% of final energy consumption, according to figures from the European Commission. Residential heating accounts for the majority of this footprint. To meet the targets of the Fit for 55 package, the European Union has set itself the goal of installing 60 million additional heat pumps by 2030.
According to the International Energy Agency (IEA), heat pump sales grew by 11% worldwide in 2022, with a particularly sharp rise in Europe (+38%). But momentum slowed in 2023 and 2024, notably in Germany and the United Kingdom, due to the partial withdrawal of subsidies and rising interest rates weighing on renovation projects.
Beyond the equipment itself, the bottleneck remains operational: the availability of qualified installers and the complexity of system sizing are holding back large-scale deployment.
Lun's bet on software
Lun's platform targets installers, distributors and manufacturers. It automates the upfront diagnostic (heat loss calculations, equipment sizing, economic simulation), the generation of custom quotes and site follow-up. The stated goal is to cut the number of on-site visits from 3-4 to 1, and to shorten the sales cycle from several weeks to a few days.
This approach draws inspiration from vertical SaaS platforms that have transformed other artisanal markets: ServiceTitan in the US for HVAC (went public in 2024 with a valuation above $9 billion), or Hover for roofing estimates. Lun aims to occupy the same position in the heat pump value chain in Europe.
A highly climate-focused investor syndicate
- Norrsken VC: Swedish fund founded by Niklas Adalberth (co-founder of Klarna), specialized in startups with measurable impact.
- Partech: Franco-German venture fund, active in Europe, Africa, and the US.
- Lowercarbon Capital: US fund led by Chris Sacca, dedicated to decarbonization technologies.
- MCJ Collective: climate investor community founded by Jason Jacobs, formerly of Runkeeper.
- Fundamental: European early-stage fund, already on the cap table.
The concentration of tier-1 climate funds around Lun signals the strategic read on the market: heat pumps are no longer a niche topic, they have become an investment category in their own right, like batteries or green hydrogen.
Competitors and benchmarks
In the HVAC installer software segment, Lun faces several players in Europe: Heatpunk (UK), Vaillant, which develops its own tools in-house, and French startups such as Cozynergy and Effy, focused on supporting homeowners with energy-efficiency renovations. In the United States, Sealed and BlocPower are investing in comparable territory by integrating financing.
According to a study by BCG published in 2023, the European residential heat pump market could reach €80 billion by 2030, up from around €25 billion in 2022. The share of software and digital services in this value chain remains a minority (5 to 10%) but shows the fastest growth.
Use of the $11.2M
Lun has indicated that it will use the seed to expand its commercial operations and accelerate product development. Concretely, the company is targeting expansion into Western Europe (Germany, the Netherlands, France, the United Kingdom), hiring local sales teams and adapting the platform to national standards. R&D will also cover financing and subsidy modules, a critical issue given the complexity of national support schemes (MaPrimeRénov in France, BAFA in Germany).
A read for the French ecosystem
France is a key market for Lun, with around 600,000 heat pumps installed every year according to AFPAC, making it the second-largest European market after Germany. France's administrative complexity (MaPrimeRénov, CEE, RGE) is both a barrier to entry and an opportunity for any player able to simplify the installer journey. Lun enters a fragmented local competitive landscape where no player has yet reached the scale of a dominant platform.
For growth operators in cleantech, the Lun case illustrates the value of combining a B2B SaaS product with a physical distribution channel (the installers themselves become ambassadors). A growth engine that demands rigor in targeting and training. Our growth marketing expertise covers these multi-tier funnel architectures.
The challenge of scaling
The $11.2M seed gives Lun a 24- to 30-month window to demonstrate traction. Investors will be watching three metrics: the number of active installers on the platform, the volume of quotes generated, and the quote-to-sale conversion rate. Comparable players in the US, such as ServiceTitan, took 5 to 7 years to reach a critical mass of users before accelerating their monetization. The European market, more fragmented geographically and linguistically, could extend that timeline.
The other point of concern is the reliance on public subsidies. A share of heat pump demand is currently triggered by national incentives. Any regulatory change (such as the revision of the German BAFA grant in late 2023) directly impacts installers' pipelines, and therefore the volume processed by the Lun platform.
FAQ
How much has Lun raised?
Lun raised $11.2 million in seed funding in March 2023, in a round led by Norrsken VC and Partech.
What does Lun do?
Lun develops a software platform for heat pump installers and distributors. It automates diagnostics, system sizing, and quote generation to reduce the number of on-site visits.
Who leads Lun?
Lun is led by Martin Collignon (CEO) and Anders Valentin (COO). The company is based in Copenhagen, Denmark.
What is the European heat pump market?
The European residential heat pump market could reach €80 billion by 2030 according to BCG, up from around €25 billion in 2022. The EU is targeting 60 million installed units by 2030.
Who are Lun's competitors?
Lun competes with players like Heatpunk in the UK, as well as integrated platforms like Sealed and BlocPower in the US. In France, players like Cozynergy and Effy occupy a complementary position in energy renovation.