UK Startup Grid Edge raises £2.8 million to reduce building emissions and energy costs with AI

Running a large commercial building is expensive and useless. The energy bill continues to climb, and building owners are under pressure to reduce emissions. That’s where Birmingham-based startup grid edges come into play. The company’s AI-driven platform helps operator builders use less energy, reduce carbon footprint and reduce costs without tearing existing systems.

The company is currently expanding by raising £2.8 million. The funding round includes support from Midlands Engine Investment Fund II, Mercia Ventures, Centrica, BP Ventures, and a group of private investors. It is subject to approval under the National Security and Investment Act (NSIA).

Grid Edge software is already in use on sites such as Bullring Shopping Centre in Birmingham and Royal Opera House in London.

The technology works by drawing data from meters, sensors, and construction management systems and combining it with external sources such as weather forecasts and energy tariffs. The system uses machine learning to find patterns in how buildings work and provide recommendations to reduce energy waste. The company says customers typically have a 20% drop in both costs and carbon emissions, with their return on investment falling within six months.

The new funding will help Grid Edge drive growth. It will add 15 new recruits to its current 28-person team and bring more commercial buildings to the platform. The company is expected to expand from 120 to 400 locations, increasing its annual recurring revenue by 150% over the past year.

Paul McCorquodale CEO said: “Our mission is to simplify the complex world of energy and building management systems, enabling building operators to reduce carbon emissions and save money.

Grid Edge was founded in 2016 by Jim Scott, Dan Wright and Tom Anderson. They were later joined by Richard Moore, formerly of Deloitte America, and McColkodahl, who included leadership roles for EE and Amber Energy.

Beth Bannister, senior investment manager at British Business Bank, said the investment reflects the fund’s purpose to support growing Midland-based businesses like Grid Edge. Rafael Joseph of Mercia Ventures added that the company is well positioned as companies face rising energy prices and stricter carbon reporting rules.

With energy management moving higher on the building owners’ agenda, Grid Edge bets that smarter software can make a measurable difference.