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GreenUnivers, the reference site for Green Business, devotes an article to Kyotherm’s 4th fundraising round (2014):

Kyotherm raises several million to conquer international markets

Emilie Jehanno – January 29, 2015

Specializing in energy efficiency financing, Kyotherm quietly closed fundraising rounds of several million euros in 2014, the amount of which remains confidential. The company brings a new investment fund into its capital, Marseille-based Malmousque Invest. The two historical shareholders have followed the rounds: Starquest Capital, which joined when the company was founded in 2011, and Noria Invest, a Nord-Pas-de-Calais fund dedicated to renewable energies and energy management, which is now the leading investor. Founder Arnaud Susplugas is now a minority shareholder.

Fundraising every year

Since its inception, the start-up has raised funds every year. Indeed, its business model is highly capital-intensive: it provides financing, management and project management for renewable heat production (geothermal and biomass) and energy-saving projects, carried out under energy performance contracts (CPE). In 2015, the company is once again seeking several million euros for its project pipeline.rnrn “These funds will be used to finance our expansion in France and Europe,” explains Arnaud Susplugas, founder and Chairman of Kyotherm. In addition to our activities in France, we already have a subsidiary in Germany with 6 projects in operation. We also have projects in the pipeline in Italy, Germany and the UK. The most advanced projects, in Italy, should see the light of day during 2015. The start-up will also be hiring an additional member of its sales team, increasing to 4 employees this year.

Close to profitability

In 2014, the company achieved contracted sales of €60 million and is approaching profitability, according to its founder. In 2013, it was below 10 million euros in sales. Kyotherm earns its income from energy savings. “Our added value is financial and contractual engineering. We generally propose packages with an equity contribution of between 20% and 25%, and we complete the financing within a project company with a bank financing contribution of between 75% and 80%,” explains Arnaud Susplugas.

Kyotherm finances energy-efficiency work, mainly in the building sector (housing, leisure and public buildings), with some involvement in industry. The building sector offers a rate of return on investment of between 5% and 10% and a contract duration of 20 to 25 years. In industry, the IRR is higher, between 7% and 10%, for shorter contract durations of between 10 and 15 years.