Nest raises $80 million for thermostat business -- report

The company's funding has been led by Google Ventures and is based on an $800 million valuation.

A look at the second-generation, slimmer Nest Learning Thermostat next to its predecessor.
A look at the second-generation, slimmer Nest Learning Thermostat next to its predecessor. Lindsey Turrentine/CNET

Nest, the next-generation thermostat company focused on saving energy, has closed a major round of funding, according to a new report.

Nest has raised $80 million on a valuation of $800 million, GigaOm is reporting today, citing people who claim to have knowledge of the deal. Google Ventures led the funding round. Venrock, another venture-capital firm, also participated in the round, according to GigaOm.

The Nest Learning Thermostat has proven to be a huge hit. In October, CNET Reviews Editor-in-Chief Lindsey Turrentine reviewed the Nest and gave it a full five stars out of five, or "spectacular," rating. Turrentine reported that the thermostat, which is capable of learning the user's heating and cooling preferences over time and can save energy costs, "is easy to install and easy on the eyes." In addition, with its built-in Wi-Fi, it can be controlled entirely from a mobile handset.

Nest is founded by Tony Fadell, who led Apple's iPod development team through its "first 18 generations." According to GigaOm's sources, the company is shipping between 40,000 and 50,000 thermostats per month, and could hit 1 million annual thermostats per year by the summer.

Nest declined comment on CNET's request for comment on the GigaOm report.


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