The raise is Mysa’s third seven-figure funding round in about two years, following a $1.5 million round in 2018 and a $2.3 million round in 2019.
BDC Capital, which is part of the federal government’s Business Development Bank of Canada, made the loan through its bridge financing program, through which it helps companies weather the COVID-19 crisis. The equity portion was led by Venture NL, a fund managed by Pelorus Venture Capital, and the investors included Killick Capital.
“Coming out of a very successful 2019, we set ourselves some aggressive growth targets for 2020,” said Mysa CEO Josh Green in a statement. “When COVID-19 hit, we were grateful to be backed by a strong group of investors who were quick to pledge their support.”
Mysa was founded under the corporate name Empowered Homes in 2014 by Green and his brother Zachary, and was originally conceived as Josh’s final assignment for his mechanical engineering degree.
Its flagship product is the Mysa thermostat, which uses artificial intelligence and mobile communications to set the temperature in homes with high-voltage heating systems, including electric baseboard heaters. Most automated heating products, such as Nest and Ecobee, don’t work on high-voltage systems, the company said.
In February, the company released its latest product, Mysa for Electric In-Floor Heating.
“Mysa exists to fight climate change. There is a tremendous opportunity in front of us to really make a difference in that fight; we’re incredibly excited to bring our products and solutions to as many people as possible,” said Josh Green. “This funding will enable us to develop more products, expand our sales channels, and ultimately, take a leadership role in shaping the future of smart thermostats.”
BDC’s bridge financing program was announced in April and is designed to match funds provided by private sector venture capital firms during investment rounds. The funding takes the form of convertible notes, which can be redeemed for equity once certain conditions are met.
The program is open to all startups, but has a minimum loan value of $250,000 and only applies to capital raises begun after Feb. 1. Companies receiving funding are required to demonstrate that COVID-19 has impacted their business.
Mysa said in an email it would use the money for research and development, bolstering its sales efforts and future product launches outside North America.
In September, Mysa was one of 10 Canadian startups named to the Lazaridis Institute’s Scaleup Program, which helps leading tech companies increase their sales. Three weeks previously, it was also among the 20 companies named to the Canadian Innovation Exchange’s CIX Top 20, which recognizes Canadian tech companies on the ascent. At the time, Green’s team had about 50 employees.
Mysa is the second Newfoundland startup this month to announce a multi-million-dollar funding round. Oliver POS, which offers digital payment solutions to retailers, said last week it had finished a $3.2 million raise from European angel investors.