Runwise: Smart Building Solutions for Savings & Sustainability

Reducing Emissions from Buildings with Smart Technology

Approximately 13% of all greenhouse gas emissions in the United States originate from commercial and residential structures. This figure may seem surprising, but a closer examination reveals the cause. Many buildings, even in major cities like New York, rely on outdated infrastructure dating back to the 1960s for their operational systems.

Runwise: A Solution for Modernizing Building Management

Runwise is a company addressing this issue, currently operating in around 4,000 buildings. They recently secured $11 million in funding to expand the implementation of their technology to a significantly larger number of properties. The core benefit of Runwise lies in its ability to simultaneously reduce costs for building owners and lessen the environmental impact of building operations.

The company’s approach centers on upgrading antiquated systems that typically function with simple on/off switches or timers, replacing them with sensor-driven controls. Runwise has developed wireless sensors powered by batteries designed to last up to a decade. These sensors work in conjunction with a central controller that manages a building’s boilers and heating systems.

Cost Recovery and Long-Term Vision

Runwise asserts that the initial investment in their technology is typically recouped through reduced heating expenses within approximately nine months.

Lee Hoffman, COO and co-founder of Runwise, notes a shift in priorities over the past several years. “Initially, environmental concerns weren’t a primary focus for many. However, demonstrating the potential for substantial cost savings quickly opened doors for discussion.”

He further elaborates on the company’s ambitious goals: “Our long-term vision is to improve building management to the point where we can positively influence both the carbon footprint and the affordability of cities nationwide. With 12 million buildings in the U.S., and our current presence in 4,000, there’s considerable room for growth.”

Impressive Traction and Funding

For a decade, Runwise has grown organically, achieving notable success. Their technology is currently deployed in buildings owned by prominent real estate companies, including Related, Blackstone, Lefrak, Equity Residential, Douglas Elliman, and Fairstead.

The company estimates that over 300,000 individuals live or work in the buildings currently managed by Runwise. Recognizing the potential for accelerated expansion, Runwise recently completed an $11 million funding round.

This funding was led by Initialized Capital, Susa Ventures, and Notation Capital, with additional participation from NextView Ventures and a group of angel investors.

The Problem with Existing Building Control Systems

“The vast majority of buildings, not just in New York but across the country and globally, operate with control systems designed in the 1960s and 70s, produced by a limited number of manufacturers,” Hoffman explains. “Even in modern, high-rise buildings like those of Bank of America, the underlying control systems often remain unchanged from decades ago.”

He elaborates, “These systems typically rely on a static ‘outdoor reset’ – essentially a pre-programmed table. Heating is activated based on predetermined time intervals or external temperature readings, without considering internal building conditions. This approach is entirely inflexible and remarkably inefficient, controlling substantial energy expenditures in nearly every building!”