Heat pump startup raises $20 million to expand across U.S.

Quilt, a California-based startup that manufactures heat pumps, has raised a $20 million investment round, bringing its total funding to $64 million. 

What’s happening: The investment “will accelerate the company’s commercial expansion across the United States as well as drive continued innovation in Quilt’s software platform and product line,” a Monday announcement said. 

• Quilt is currently available in 16 U.S. states and five Canadian provinces, and will surpass 1,000 installed units by the end of this year, according to CEO Paul Lambert. 
• The company works with over 60 contractors who sell, install, and maintain its systems, and this year has seen a 409 percent increase in inbound contractor leads, the announcement added. 

Go deeper: Quilt’s ductless heat pump system was designed by veterans from Google, Apple, and Nest, with indoor units just under eight inches tall, customizable panels, and real-time homeowner monitoring.

• The company’s system is 20 percent more efficient than the next-best ductless heat pumps available and 80 percent more efficient at cooling than what most North Americans have in their homes, according to Lambert. 

The big picture: Quilt is one of just a few U.S.-based HVAC manufacturers founded in recent decades. 

What they’re saying: “In 2026, we’ll be prioritizing expansion across the Midwest and South, as well as deeper East and West Coast penetration. Our expansion strategy is partner-driven,” Chief Revenue Officer Mark Schmidt tells Homepros.

• “We’ll be expanding both our hardware and software product suite,” he adds. “On the software side, we’re prioritizing new partner tools like remote diagnostics that make installs quicker and truck rolls less frequent.”

Of note: Along with the funding, the company announced that former Nest CFO Tom vonReichbauer will join its board of directors.