With $6.9M, Raleigh’s FilterEasy increases funding to $11.4M

Air filter subscription service FilterEasy has raised nearly $7 million in new financing.

The company, founded by Raleigh entrepreneurs Thad Tarkington and Kevin Barry, announced the news this week.

In an interview, Tarkington calls the raise “a good step in helping us to continue to grow.” He says the company, which has more than 50 employees, is hiring across the board in Raleigh.

“We’re hiring folks in multiple different areas, really in everything from growth to operations, customer experience,” he says.

The latest raise brings the company’s total to more than $11.4 million. Tarkington says any additional funders “will depend on how we grow,” but expects to be able to scale up with its current coffer.

“Moving forward, we’ll make a decision and if there’s an opportunity for more capital, we’ll look at that,” he says.

FilterEasy Raises $6.9 Million in Series B Funding Led by Arsenal Venture Partners to Accelerate the Automated Delivery of HVAC Air Filters

RALEIGH, N.C., July 25, 2017 /PRNewswire/ — FilterEasy, a subscription-based HVAC air filter service, today announced it has raised $6.9 million in Series B funding, led by Arsenal Venture Partners and with participation from NC State Endowment Fund, Bonaventure Capital, Cofounders Capital, IDEA Fund Partners, John Replogle, and Triangle Angel Partners. These investors join Azure Capital, RTP Capital Associates, and the venture arm of Michael D. Olander Jr.’s MDO Holdings, among others.

Cofounders Thad Tarkington and Kevin Barry saw a market opportunity after personally experiencing some headaches with their own HVAC air filters. Air in the home can be up to 5 times dirtier than the air outdoors, so regular filter changes are essential to healthy living, and vital to those suffering from allergies or asthma. Tarkington and Barry discovered that the majority of homeowners were simply not changing their air filters often enough, as this particular home maintenance item is out-of-sight, out-of-mind. Changing filters on a regular schedule, when they need to be changed, extend the life of a home’s HVAC system and reduce HVAC maintenance costs. Furthermore, changing a home’s air filters on a regular schedule reduces heating and cooling costs by up to 15% per month, cutting down on energy bills and minimizing environmental impact. FilterEasy began offering high-quality filters in every size, delivered right to customers’ doors when it’s time to change them. This convenient service allows people to change their filters on time, every time, without all the hassles.

Since launching the website in 2014, FilterEasy’s revenue and subscriber base have grown rapidly, with a nearly 300% gain in 2016 and they are on track for another record year in 2017. The investors from FilterEasy’s Series B round join an enthusiastic group of savvy investors from FilterEasy’s prior investment rounds. Completion of the Series B investment round brings total funding to $11.4 million.

The new and existing investors bring a wide pool of experience from a variety of markets to FilterEasy’s armory. Arsenal Venture Partners, the round’s lead, is a unique growth equity firm that partners with visionary entrepreneurs building exceptional businesses. Arsenal specializes in high growth, recurring revenue companies, making them an ideal fit for FilterEasy. John Replogle is the current CEO of Seventh Generation Inc., and formerly was the CEO of Burt’s Bees and President of Guinness Bass Import Co. Azure Capital, a Silicon Valley investment firm, has also put their funds behind powerhouse companies like BillMeLater and VMWare. David Gardner is also an investor in both funding rounds for FilterEasy, and was the Triangle’s most active and involved angel investor, prior to founding Cofounders Capital, a free startup accelerator and early stage seed fund.

FilterEasy, founded in North Carolina, staying true to its roots included several local investors in the round. Thad Tarkington, CEO, and Kevin Barry, COO, founded the company while attending North Carolina State University. As the business model proved successful and the business grew rapidly, Tarkington and Barry shifted their focus from school to business. In a success story that has come full circle, NC State, became one of several collegiate investors in the Series B investment round. The closing of FilterEasy’s Series B investment round validates the immense amount of dedication and passion devoted to the business and serves as a catapult for future expansion.

About FilterEasy
Launched in 2014, Raleigh-based FilterEasy offers consumers a subscription-based HVAC air filter fulfillment service using a proprietary web-based platform to provide a convenient solution to a common household problem – remembering when to change an HVAC air filter. FilterEasy’s subscription model guarantees that correct size HVAC air filters are conveniently delivered to a home’s doorstep so they may be changed on a regular basis, which can reduce monthly heating and cooling expenses by 5%-15%. AAF Flanders, the nation’s largest residential HVAC filter manufacturer and supplier to NASA and U.S. hospital systems, manufactures FilterEasy HVAC filters in the United States. Visit www.FilterEasy.com.

Media Contact:
Nicole Choman
FilterEasy
(919) 348-9860
nicole@filtereasy.com

SOURCE FilterEasy

Related Links

http://www.filtereasy.com

FilterEasy Raises $6.9 Million in Series B Funding Led by Arsenal Venture Partners to Accelerate the Automated Delivery of HVAC Air Filters

RALEIGH, N.C.July 25, 2017 /PRNewswire/ — FilterEasy, a subscription-based HVAC air filter service, today announced it has raised $6.9 million in Series B funding, led by Arsenal Venture Partners and with participation from NC State Endowment Fund, Bonaventure Capital, Cofounders Capital, IDEA Fund Partners, John Replogle, and Triangle Angel Partners.  These investors join Azure Capital, RTP Capital Associates, and the venture arm of Michael D. Olander Jr.’s MDO Holdings, among others.

Cofounders Thad Tarkington and Kevin Barry saw a market opportunity after personally experiencing some headaches with their own HVAC air filters. Air in the home can be up to 5 times dirtier than the air outdoors, so regular filter changes are essential to healthy living, and vital to those suffering from allergies or asthma. Tarkington and Barry discovered that the majority of homeowners were simply not changing their air filters often enough, as this particular home maintenance item is out-of-sight, out-of-mind.  Changing filters on a regular schedule, when they need to be changed, extend the life of a home’s HVAC system and reduce HVAC maintenance costs.  Furthermore, changing a home’s air filters on a regular schedule reduces heating and cooling costs by up to 15% per month, cutting down on energy bills and minimizing environmental impact.  FilterEasy began offering high-quality filters in every size, delivered right to customers’ doors when it’s time to change them.  This convenient service allows people to change their filters on time, every time, without all the hassles.

Since launching the website in 2014, FilterEasy’s revenue and subscriber base have grown rapidly, with a nearly 300% gain in 2016 and they are on track for another record year in 2017.  The investors from FilterEasy’s Series B round join an enthusiastic group of savvy investors from FilterEasy’s prior investment rounds.  Completion of the Series B investment round brings total funding to $11.4 million.

The new and existing investors bring a wide pool of experience from a variety of markets to FilterEasy’s armory. Arsenal Venture Partners, the round’s lead, is a unique growth equity firm that partners with visionary entrepreneurs building exceptional businesses.  Arsenal specializes in high growth, recurring revenue companies, making them an ideal fit for FilterEasy. John Replogle is the current CEO of Seventh Generation Inc., and formerly was the CEO of Burt’s Bees and President of Guinness Bass Import Co.  Azure Capital, a Silicon Valley investment firm, has also put their funds behind powerhouse companies like BillMeLater and VMWare.  David Gardner is also an investor in both funding rounds for FilterEasy, and was the Triangle’s most active and involved angel investor, prior to founding Cofounders Capital, a free startup accelerator and early stage seed fund.

FilterEasy, founded in North Carolina, staying true to its roots included several local investors in the round.  Thad Tarkington, CEO, and Kevin Barry, COO, founded the company while attending North Carolina State University.  As the business model proved successful and the business grew rapidly, Tarkington and Barry shifted their focus from school to business. In a success story that has come full circle, NC State, became one of several collegiate investors in the Series B investment round.  The closing of FilterEasy’s Series B investment round validates the immense amount of dedication and passion devoted to the business and serves as a catapult for future expansion.

About FilterEasy
Launched in 2014, Raleigh-based FilterEasy offers consumers a subscription-based HVAC air filter fulfillment service using a proprietary web-based platform to provide a convenient solution to a common household problem – remembering when to change an HVAC air filter. FilterEasy’s subscription model guarantees that correct size HVAC air filters are conveniently delivered to a home’s doorstep so they may be changed on a regular basis, which can reduce monthly heating and cooling expenses by 5%-15%. AAF Flanders, the nation’s largest residential HVAC filter manufacturer and supplier to NASA and U.S. hospital systems, manufactures FilterEasy HVAC filters in the United States. Visit www.FilterEasy.com.

Media Contact:
Nicole Choman
FilterEasy
(919) 348-9860
nicole@filtereasy.com

SOURCE FilterEasy

How Two NC State Students Launched A Filter Delivery Startup

The U.S. Environmental Protection Agency recommends home and business owners replace their air filters once per quarter, and in some cases as often as once per month. A Raleigh startup founded by two N.C. State University students hopes that most people would rather not try to remember that on their own.

Investors have taken note, pumping nearly $5 million into the startup, according to records with the Securities and Exchange Commission.

Kevin Barry and Thad Tarkington met at N.C. State. On an otherwise normal Saturday, Barry said he had a frustrating experience trying to replace an air filter for his apartment, an ordeal that took four hours.

“He ended up finally getting the filter, but it ended up taking him the good majority of the afternoon, and it was only for a ten- or fifteen-dollar filter,” said Tarkington. “As we started looking more and more into it, we realized this is a fairly common problem.”

That experience led to the idea for FilterEasy, a company that delivers the correct air filter right to customer’s front doors.

“There are hundreds of different consumer sizes, thousands of different business sizes, and we deliver that exact bundle of the exact sizes needed on the correct frequency,” said Tarkington. “And it’s really kind of checking that one thing off the to-do list of remembering to change your filters every quarter.”

The company doesn’t get into supply chain specifics, but has a contract with a manufacturer that allows FilterEasy to deliver the air filters to homes and businesses for the same price they would pay for a filter if bought at a store, according to Tarkington. Based in downtown Raleigh, FilterEasy employs 45 people at a range of functions, including working at a local fulfillment center.

Barry and Tarkington started working in earnest on the company in late 2012 and by mid-2013 saw such an opportunity that they quit school. They launched the service in March of 2014 and haven’t looked back.

“Once we saw it had legs and saw the opportunity and started working on it, we just began to pursue it full time,” said Tarkington.

FilterEasy Automates Easily-Forgotten Maintenance Task For Homeowners And Renters

Most homeowners with HVAC systems know what air filters are and understand why it’s important. But some young people and renters may be unaware of their existence. For those in the dark, FilterEasy Co-founder Kevin Barry would like to clarify. “They have one simple purpose,” says Barry, “and that is to remove particles from the air as it circulates through your HVAC system. Every hour, every single air particle in your home is going to pass through your HVAC system two times. So, that’s 48 times a day that your air filter is going to be scrubbing the air.”

Barry and co-founder Thad Tarkington operate a young, high-growth company located in Raleigh, NC that offers home delivery of air filters to residential and commercial addresses. “They know firsthand that it can be a pain to travel to the hardware store and buy filters four times a year,” writes Forbes contributor Matt Hunckler. “Even worse, it’s a routine maintenance task that most people simply forget to perform, which can have negative impacts on both their health and their HVAC system.”

By partnering with AAF Flanders, the country’s largest manufacturer of air filters, FilterEasy is able to match the price of their service with the price consumers pay in-store. Since their launch in March of 2014, FilterEasy has raised over $4.5M in funding.

Read the full story from Forbes

Raleigh Company That Delivers Filters Gets More Funding

Raleigh, NC-based FilterEasy recently announced it had raised over $4M in an equity financing of the company. “We ended up doing a little more than we had planned,” said Co-founder Thad Tarkington. The round includes the $3 million the company said it had raised in December.

At the time, Tarkington said the funding would lead to a doubling of its 20 person headcount. Today, that number stands at 30, and the company is still looking to make additional hires.

The $4.2M round involved 44 investors from Raleigh, Alabama, and California. The company is backed by local investors IDEA Fund Partners and Cofounders Capital.

Read the full story from Triangle Business Journal

New Investors Bet On 5x Sales Growth For FilterEasy in 2016

FilterEasy’s goal of 500% revenue growth in 2016 is becoming more and more attainable with the help of a few “big wins” for the company, Laura Baverman of ExitEvent reports.

Recently, the company closed a $3 million Series A funding round with participation from IDEA Fund Partners, Fidelis Capital, and existing investors. The money is being used for marketing efforts such as the development of a new website and for investment in the company via increased hiring.

Additionally, a new partnership with Just Energy, a power provider based in Canada, gives the company access to 2 million new residential and commercial customers. As of this week, Just Energy will include an opt-in option on their bills for home delivery of air filters.

The company will also be featured in the May issue of American Airlines’ American Way Magazine, which will be seen by roughly five million travelers. The advertisement will offer a 40% discount on the first shipment.

Read the full story from ExitEvent

Raleigh startup FilterEasy raises more than half of $3M goal

FilterEasy, a Raleigh-based startup that delivers air filters to your doorstep, has raised more than half of its $3M fundraising goal. Co-founder and CEO Thad Tarkington remarked that the company closed on “a majority” of its funding goal last week, and said the rest will be raised in the coming weeks. Thad noted that the company recently converted around $1.1M of debt to equity.

Lister Delgado of IDEA Fund Partners commented on how impressed he was by the company’s sales growth. “This is just getting started, but I see the traction there,” said Delgado, adding that he believes “the market is four or five times bigger.” Delgado added that he has also been impressed with the strength of the company’s leadership, despite their young age.

FilterEasy initially raise $1.5M from investors and began operating in May of 2013. The company aims to expand in the coming months by adding harder-to-find filters to its lineup, along with custom-sized filters. It also plans to expand its business to Canada.

Read the full story from The News and Observer