Cleantech startup Karman Industries announced that it has raised an additional $7.5 million in VC funding – following a $4 million pre-seed financing announced in September 2024 – for its solutions aimed at decarbonizing manufacturing by addressing emissions from industrial heat.

Industrial heat is essential to manufacture nearly all goods and commodities – from chemicals and ethanol to textiles and food and beverage. Historically, manufacturers have used gas boilers to produce industrial heat, an expensive and emissions-intensive approach.

Launched in 2024 by CEO David Tearse and Chief Technology Officer Chiranjeev (CJ) Kalra, California-based Karman Industries provides solutions aimed at electrifying industrial thermal energy use to help global enterprises significantly reduce both manufacturing costs and onsite Scope 1 emissions. The company has developed Thermal01, a self-contained electric heat pump, which the company has said removes onsite CO2 emissions, while dramatically lowering costs for industrial manufacturing. According to the company, the heat pump offers an affordable, compact, and rapidly deployable solution that could reduce an organization’s energy costs 25-50% and eliminate onsite emissions.

Investors in the new funding round included initial investors Riot Ventures and Space VC, as well as new investors Wonder Ventures and 8090 Industries.

In a post announcing the new funding round, Karman Industries said:

“This funding will supercharge our momentum in 2025 as we continue to scale and develop technology that will affordably reduce greenhouse gas emissions.”