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Mojave Energy Systems raised a $9.5 million Series A round to grow adoption of its HVAC tech, the company tells Axios. 

Why it matters: The round is a rare VC investment into an HVAC company that aims to make air conditioning more efficient.

Zoom in: Mojave said the round was led by existing investors Fifth Wall and At One Ventures. 

Returning investors Myriad Venture Partners, Starshot Capital, Alumni Ventures Group, and new investor Earth Venture Capital participated. 

Mojave, spun out of the Palo Alto Research Center in 2022, has now raised $25.6 million to date. Fifth Wall and At One Ventures also co-led the seed round. 

Mojave launched its HVAC system earlier this year, and CEO Philip Farese says it has sold units to 10 customers, with another 10 deals close to closing in the pipeline. The company expects to generate $10 million to $20 million in revenue next year, says Farese.

Zoom out: Buildings are responsible for 40% of carbon dioxide emissions, while air conditioning is responsible for close to 4% of global greenhouse gas emissions. AC units can also waste a lot of energy.

How it works: Mojave has developed an air conditioning unit for commercial and industrial buildings that uses liquid (called a desiccant) to remove moisture from the air. Farese described it as very salty water. 

The system, called ArctiDry, circulates outside air into a building and dries and cools it more efficiently (between 30% to 50% more efficiently) than conventional systems. 

Traditional air conditioning units use refrigerant to absorb heat and common HVAC refrigerants emit significant greenhouse gases. Mojave's unit uses less refrigerant. 

Mojave's units cost the same as a traditional AC system but because they're more efficient, they save the user money on electricity over the life of the hardware.

The intrigue: "Today's air conditioning systems are wildly archaic," said Fifth Wall's Anastasia Istratova who led the investment in Mojave. 

What's next: Mojave plans to launch an HVAC unit combined with a heat pump. 

Exclusive: Mojave raises $9.5M for efficient HVAC system

Spun out of PARC, the startup uses a liquid to absorb moisture

Illustration of HVAC fan blades overlaid with money.

Mojave Energy Systems raised a $9.5 million Series A round to grow adoption of its HVAC tech, the company tells Axios. Why it matters: The round is a rare VC investment into an HVAC company that aims to make air conditioning more efficient.

Exclusive: Mojave raises $9.5M for efficient HVAC system

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