LumenStream, a climatetech company based in Belfast, has raised £1.2 million (US$1.6 million) to enhance its smart lighting solutions.

The funding round was led by a local angel investor syndicate, with support from Co Fund III, managed by Clarendon Fund Managers, and Techstart Ventures.

The investment will help grow its “Lighting as a Service” model.

This “Pay as you Save” approach provides businesses with energy-efficient lighting without upfront costs, allowing them to cut energy expenses and carbon emissions while boosting cash flow.

LumenStream’s clients include Siemens, Wickes, Oxfam, and Ryobi.

The company plans to expand its team, with job openings in accounting, sales, and technical support.

🔗 Source: Tech.eu

🧠 Food for thought

1️⃣ The lighting-as-a-service market is experiencing explosive growth

LumenStream’s £1.2M investment positions the company in one of the fastest-growing segments of the clean energy transition.

The global lighting-as-a-service (LaaS) market is projected to grow from $1.23 billion in 2023 to $16.34 billion by 2032, representing an extraordinary compound annual growth rate of 33.3%1.

This rapid expansion is being driven by increasing energy efficiency mandates, corporate sustainability initiatives, and the financial benefits of switching from capital expenditures to operational expenses for lighting systems.

LumenStream’s “Pay as you Save” model aligns with broader industry trends where service providers are increasingly incentivized to maximize energy efficiency rather than simply selling hardware, creating better outcomes for customers.

The company’s customer portfolio already includes major corporations like Siemens, Wickes, and Ryobi, demonstrating the market validation for their approach across different industries.

2️⃣ The energy-efficient lighting transition offers substantial economic and environmental benefits

Modern energy-efficient lighting technology can reduce energy consumption by up to 90% compared to traditional lighting systems, creating significant cost savings and environmental benefits2.