Smalt, the platform for renewable energy workforce and productivity development, has raised €8 million in a preemptive seed fundraising round to accelerate commercial and residential PV service growth while also addressing Europe's renewable energy skills deficit. The round was led by noa (formerly A/O), Europe's largest venture capital fund in the construction industry, with existing investors General Catalyst, Owl Ventures, and Heartfelt (formerly APX).
Energy transformation in the EU is slow. Innovative climate solutions like PV systems, heat pumps, and smart meters are being implemented slower due to the skills deficit caused by the integration of immigrant skilled workers into the labor market and craft sector productivity. To address this issue, Smalt provides industry partners with a workforce development platform and digitally backed installation services.
Smalt installs PV in single-family and commercial buildings for top German energy and climate firms, including Thermondo, Otovo, and Enviria. Smalt wants to build a Europe-wide network of franchisees managed by experienced craftsmen from its own ranks as well as local entrepreneurs and craft enterprises, driven by its recognized education and training facility in Berlin and its four branches across Germany.
Smalt has completed over 300 PV systems in major commercial buildings and multi-family houses since September last year. Smalt offers industrial subcontractor services and complete solutions, including consultation, financing, installation, and commissioning.
"Our franchise platform enables the European craft ecosystem to work more efficiently and thus strengthens European sovereignty in the renewable energy sector. The new financing will accelerate our growth in the commercial solar and maintenance segment," said Marius Westhoff, Co-Founder and Managing Director of Smalt.
Arjun Jairaj, Investor at noa, said: “The shortage of skilled workers is a key bottleneck in Europe's energy transition. Smalt offers a holistic approach to tackling this problem by attracting fresh talent into the industry and expediting their entry to the jobsite by blending digital and on-site training, and combining this with a technology platform to ensure repeatable high-quality service delivery.”
“This funding round will accelerate our plans to expand into the commercial PV space, as well as regionally into the south of Germany and beyond. We are super excited to welcome the noa family to the cap table with its deep expertise in the built world, to complement our existing investors from the education and B2B software technology space,” added Khurram Masood, Co-Founder and Managing Director of Smalt.
