In this Research Note, we examine Clockworks Analytics, the US provider of building analytics software. This article covers the development and growth of the company, channel partnerships and funding rounds through to Series E in August 2023, supported by Schneider Electric, their long-standing strategic investor and partner.

Formerly known as KGS Buildings, the company was founded in 2008 within MIT's Building Science Department and is based in Somerville, MA.  Through its Fault Detection and Diagnostics (FDD) technology, the company proactively identifies inefficiencies and root causes within building systems and prioritizes the most urgent tasks for building staff in real-time.

With over 2,800 active buildings in over 30 countries, Clockworks has become one of the most widely utilized cloud-based building analytics platform in the world, according to the company. The company grew 40% YoY in 2022. LinkedIn reports 64 employees currently, an 11% headcount growth in the last six months.

Clockworks Analytics software monitors more than 450 million square feet of property across every building type, serving healthcare, universities, and corporate real estate. Clients include MIT, Harvard Business School, Kaiser Permanente, Merck, University of Iowa, Amgen and GK Norway. In June 2023, the firm achieved a goal of 400,000 pieces of connected equipment in pursuit of its mission for a massive positive impact on the built environment.

The Clockworks Analytics Partner Program, which formally launched in 2021 for mechanical and controls companies across the globe, allows building service providers to focus their service visits on the highest-impact tasks affecting client buildings, as well as head off issues before they materialize. Existing partners include Schneider Electric, ISS, LONG, Wendel, Havtech and EllisDon Facilities Services among others. Clockworks reported 278% growth in its channel partner business in 2022.

Schneider Electric’s EcoStruxure Building Advisor, a suite of Digital Services has one of its automated Fault Detection & Diagnosis applications (Asset-Health) powered by Clockworks technology and SE Ventures has been investing in the company since 2016.

Most recently, in August 2023, the company closed a Series E funding round of $16.1 million. The round was led by Carom Growth Partners with participation from existing investor, SE Ventures. This investment brings the company’s total funding to over $28 million since inception. In December 2020, SE Ventures invested in a $8 million Series D funding round of Clockworks Analytics and previously invested $2 million in the company in 2016.

A recent product release from the company is Building Scorecard, a new building analytics dashboard that evaluates whole building and whole portfolio performance and drills down into the specific systems and equipment causing the biggest issues. The building scoring methodology aggregates energy, comfort, and maintenance performance into a unified building score.

With an estimated revenue in the range of $10 - $15 million and the recent appointment of an experienced co-CEO to continue growth acceleration, this late-stage venture backed company looks set to continue its growth in building analytics software.

This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.