US-based electric motor system supplier Software Motor Company (SMC) has closed a $25m funding round backed by BMW i Ventures, the corporate venturing arm of car maker BMW.
Founded in 2013, SMC supplies electric-powered motor parts that can be retroactively installed in existing heating, ventilation and air conditioning (HVAC) units to reduce their energy usage.
Customers use an intelligent software platform developed by SMC to calibrate the motors, which employ a mechanical design called switched reluctance to minimise energy waste owed to moving parts.
SMC targets industrial and commercial users of HVAC systems and plans to adapt its technology for electric vehicle manufacturing plants.
Greg Smithies, partner at BMW i Ventures said: “Electric motors are a massive, $100bn market, and they move our modern world, while consuming over 45% of the world’s electricity.
“So, investing in a company that can deliver huge electrical cost savings, while selling motor systems that are lower cost, more reliable, and made from more sustainable materials seems like a no-brainer.”
The funding will help SMC complete development of more comprehensive software tools. It also plans to launch motors with greater capacity and move to meet non-retrofit applications.
The company said it has now raised more than $70m in funding, including $31.4m in a June 2019 series A-2 round featuring JLL Spark, the corporate venturing and innovation vehicle for property consulting firm JLL, as well as Meson Capital and undisclosed additional investors.
Details of SMC’s earlier funding have not been publicly disclosed, though a 2017 regulatory filing stated it had raised $11m in equity funding from unnamed investors.