LumenStream, a climatetech company based in Belfast, has raised £1.2 million (US$1.6 million) to enhance its smart lighting solutions.

The funding round was led by a local angel investor syndicate, with support from Co Fund III, managed by Clarendon Fund Managers, and Techstart Ventures.

The investment will help grow its “Lighting as a Service” model.

This “Pay as you Save” approach provides businesses with energy-efficient lighting without upfront costs, allowing them to cut energy expenses and carbon emissions while boosting cash flow.

LumenStream’s clients include Siemens, Wickes, Oxfam, and Ryobi.

The company plans to expand its team, with job openings in accounting, sales, and technical support.

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🔗 Source: Tech.eu

🧠 Food for thought

1️⃣ The lighting-as-a-service market is experiencing explosive growth

LumenStream’s £1.2M investment positions the company in one of the fastest-growing segments of the clean energy transition.

The global lighting-as-a-service (LaaS) market is projected to grow from $1.23 billion in 2023 to $16.34 billion by 2032, representing an extraordinary compound annual growth rate of 33.3%1.

This rapid expansion is being driven by increasing energy efficiency mandates, corporate sustainability initiatives, and the financial benefits of switching from capital expenditures to operational expenses for lighting systems.

LumenStream’s “Pay as you Save” model aligns with broader industry trends where service providers are increasingly incentivized to maximize energy efficiency rather than simply selling hardware, creating better outcomes for customers.

The company’s customer portfolio already includes major corporations like Siemens, Wickes, and Ryobi, demonstrating the market validation for their approach across different industries.

2️⃣ The energy-efficient lighting transition offers substantial economic and environmental benefits

Modern energy-efficient lighting technology can reduce energy consumption by up to 90% compared to traditional lighting systems, creating significant cost savings and environmental benefits2.

This explains why high-energy users, such as LumenStream’s target customers, are particularly motivated to adopt these solutions, as lighting can represent 20-30% of a commercial building’s electricity usage.

The “zero-upfront-cost” model eliminates the primary barrier that has historically prevented businesses from investing in energy efficiency upgrades, despite the compelling long-term economics.

By converting lighting from a capital expense to an operational expense, LumenStream enables businesses to immediately realize positive cash flow from energy savings while simultaneously reducing their carbon footprint.

This approach addresses the persistent challenge that building owners face with capital constraints that hinder investment in advanced lighting systems, which has led to significant underinvestment in energy efficiency despite the potential cost savings3.

3️⃣ Northern Ireland is establishing itself as a climate technology hub

LumenStream’s successful funding round, supported by multiple local investors including Clarendon Fund Managers and Techstart Ventures, highlights Northern Ireland’s growing significance in the climate technology sector.

The investment demonstrates how regional innovation ecosystems can develop solutions for global sustainability challenges, with LumenStream now positioned to expand beyond its current operations.

The company’s focus on immediate, practical climate solutions aligns with the growing emphasis on developing commercially viable technologies that can be deployed at scale today rather than waiting for perfect solutions.

By creating jobs in accounting, sales, and technical support, LumenStream is contributing to economic development while simultaneously addressing environmental challenges.

This exemplifies how climate technology can be a driver of regional economic growth, creating specialized employment opportunities while addressing global sustainability challenges.

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