This Research Note examines notable funding trends in the smart building startups landscape in H1 2025.  This article is based on research for our recently published Startups in Smart Buildings Report.  We highlight the major segment which received most investments, the increases in average size of funding rounds and notable strategic buyers who invested in smart buildings in 2025. We conclude with our view of a more mature, results-driven investment environment, consolidating around proven winners. Investment Trends in Smart Building Startups Analysis of the 126 startup funding rounds valued at $3.1 billion revealed some interesting trends: Smart building startups in our Building Energy Management cohort captured 46% of the total funding rounds in H1 2025. This category, which includes grid interactivity solutions, attracted 58 funding rounds. 60% of these building energy management investments were directed at European startups, particularly German firms. The concentration reflects the European Union’s clear legislative agenda towards decarbonization and energy security. […]