Gradient

Gradient

Energy-efficient window ACs with heat pump

About Gradient

Simplify's Rating
Why Gradient is rated
B-
Rated B on Competitive Edge
Rated B on Growth Potential
Rated C on Differentiation

Industries

Hardware

Industrial & Manufacturing

Energy

Consumer Goods

Company Size

51-200

Company Stage

Series A

Total Funding

$39.5M

Headquarters

San Francisco, California

Founded

2017

Overview

Gradient Comfort makes energy-efficient window air conditioners that also function as heat pumps. Its flagship unit cools and heats spaces without blocking the view, ideal for urban living. The company sells directly to consumers via gradientcomfort.com and uses R-32 refrigerant to improve efficiency and lower environmental impact. It has received a $17.5 million Defense Production Act grant from the U.S. Department of Energy to support clean energy manufacturing.

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Simplify's Take

What believers are saying

  • Carroll Tower deployment proves scalability: 277 units, 450,000 kWh savings, 219 tons CO2e reduction.
  • Local Law 97 compliance deadline May 1, 2025 creates urgent retrofit demand across NYC.
  • Public housing partnerships with NYCHA and Providence Housing Authority establish replicable deployment model.

What critics are saying

  • Envr Air's faster installation model captures multifamily market share from Gradient's deployment.
  • Michigan manufacturing plant delays prevent 100,000 units annual capacity, limiting scaling against HVAC incumbents.
  • Local Law 97 2029 tightening requires deeper cuts; 120V units insufficient for high-rise retrofits.

What makes Gradient unique

  • 120V window heat pumps require no electrical upgrades, enabling rapid 12-day building retrofits.
  • Nexus software optimizes multifamily energy use by 25% while maintaining resident comfort.
  • $17.5M DOE grant funds Michigan plant with 100,000 units annual capacity.

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Funding

Total Funding

$39.5M

Above

Industry Average

Funded Over

3 Rounds

Series A funding typically happens when a startup has a product and some customers, and now needs funding to scale. This money is usually used to grow the team, expand marketing, and improve the product. Venture capital firms are frequently the main investors here.
Series A Funding Comparison
Below Average

Industry standards

$15M
$8.2M
Discord
$9M
Gradient
$15M
Canva
$30M
Kalshi

Benefits

Equity

Medical/vision/dental/life/disability insurance

401k

Paid parental leave

Commuter benefits

Unlimited PTO within reason

Relocation package ( out of state applicants only )

Growth & Insights and Company News

Headcount

6 month growth

0%

1 year growth

-3%

2 year growth

5%
TechCrunch
Feb 3rd, 2026
Gradient's Nexus software links window heat pumps to cut energy use 25% in old buildings

Gradient, a heat pump startup, has launched Nexus, software that links its window-mounted heat pumps across multifamily buildings. The system allows building managers to set temperature limits while maintaining resident comfort, with one building seeing a 25% drop in energy consumption after implementing controls. The company targets old buildings with aging boilers, particularly in New York City, where its heat pumps provide both heating and cooling without requiring electrical upgrades. Installation takes hours rather than days, as units fit in windows like air conditioners but don't block views. Gradient has deployed its technology in New York City Housing Authority buildings and affordable housing developments. The Nexus system can also reduce power draw during grid stress whilst maintaining comfort, using building data and sensors to identify which units can temporarily decrease consumption.

Gradient
Oct 7th, 2025
Gradient Wins Electric Innovation Award Alongside Former U.S. Secretary of Energy Jennifer Granholm

Gradient wins Electric Innovation award alongside former U.S. Secretary of Energy Jennifer Granholm. Recognizing breakthrough design in electrification. Gradient has been named a winner in the inaugural Electric Innovation Awards, receiving top honors in the Design + Discovery category during Climate Week NYC 2025. Hosted by the Electric Innovation Initiative, the awards celebrate the people and projects making electrification real - everywhere it counts. This recognition highlights its commitment to designing climate-friendly heating and cooling solutions that combine comfort, cost savings, and climate impact. Honored by leaders in clean energy. The award was presented by Doreen Harris, President and CEO of the New York State Energy Research and Development Authority (NYSERDA). Former U.S. Secretary of Energy Jennifer Granholm was also honored for her leadership in advancing electrification. Gradient was nominated by David Hochschild, Chair of the California Energy Commission, whose continued support of innovation in clean energy has helped advance electrification nationwide. A win for design and Discovery. Gradient's All-Weather 120V window heat pump embodies what electrification can achieve - delivering high performance and year-round comfort without the cost or disruption of traditional HVAC systems. This recognition affirms that innovative design can accelerate adoption of clean, efficient, and accessible heating and cooling solutions for every building type. gradientcomfort.com is grateful to the Electric Innovation Initiative for this honor.

ACHR News
Jan 30th, 2024
In Line for Federal Money for Heat Pumps, OEMs are Ready to get to Work

Meanwhile, Gradient, a startup that makes window-mounted heat pumps, is in line for $17.5 million to establish a plant in Michigan that will employ about 300 and have a capacity of 100,000 units a year.

HVAC Informed
Nov 10th, 2023
Introducing The Gradient All-Weather 120 V Window Heat Pump: The Ultimate Solution For Year-Round Comfort And Savings

Gradient, a company built by thermal scientists to rethink HVAC and build products that are good for the planet and great at cooling and heating homes, announced the All-Weather 120 V Window Heat Pump.

Grist
Nov 1st, 2023
Can ACs cool the world without warming it?

Gradient has partnered with the New York City Housing Authority as the first customer for its new, all-weather unit - a take on a heat pump that more closely resembles a window AC unit.

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