Quilt

What Quilt does

Quilt Systems, Inc. is a Redwood City, California-based climate technology company founded in 2022 by Paul Lambert (CEO), Matthew Knoll (CTO), and Bill Kee (COO) that designs and sells ductless heat pump systems with integrated smart controls for residential homeowners. The company's product ecosystem comprises wall-mounted indoor units, outdoor compressor units available in 2-zone and 3-zone configurations, the Quilt Dial thermostat, the Quilt Sense radar-and-compute sensing module, and mobile applications for both consumers and HVAC technicians. Manufacturing is distributed across Vietnam, China, and Malaysia through joint development agreements, while hardware and software design is led by Quilt's California-based engineering team, which draws alumni from Google, Apple, Nest, Google X, and Rethink Robotics.

The company's technical proposition centers on industry-leading 25+ SEER2 efficiency ratings (AHRI certified), cold-weather performance (90% of rated capacity at -13°F), and a "software-defined HVAC" architecture demonstrated by the first over-the-air performance update in the HVAC industry, which delivered a 20%+ capacity boost without hardware changes. The system leverages radar-based occupancy sensing, room-by-room zoning, and a growing data flywheel built on roughly 1,000 installed units to optimize compressor control and energy savings. Secondary use cases include boutique hotels (The Madrona, Hotel Lilien) and short-term rental properties, with custom-finished indoor covers designed to blend into interior aesthetics.

Quilt operates an asset-light distribution model: all installations are handled exclusively by a network of 100+ Certified HVAC Partner installers across 26 US states and 6 Canadian provinces, supported by the Toolbox technician app. Revenue comes primarily from hardware sales with customized system pricing (upfront costs typically exceeding $15,000 for full-home installations), supplemented since May 2026 by the Palmetto Comfort Plan — a monthly lease starting at $117 per room covering equipment, installation, maintenance, and warranty — that converts the upfront cost barrier into recurring revenue. The company has raised $64 million in total venture funding across seed, Series A ($33M, April 2024), and Series B ($20M, December 2025) rounds from investors including Energy Impact Partners, Galvanize, Sequoia Capital, Gradient Ventures, and Lowercarbon Capital.

Name

Quilt

Legal name

Quilt Systems, Inc.

Website

https://quilt.com

Company type

Private

Founded year

2022

Operating status

Operating

Headcount range

11–50 employees

Short description

Quilt Systems designs and sells ductless heat pump systems with smart thermostats, occupancy sensing, and over-the-air software updates for residential homeowners, installed exclusively through 100+ Certified HVAC partners across 34 US states and 5 Canadian provinces.

Ownership category

akta.pro rank

Product category

Residential Ductless Heat Pumps

NAICS

Ventilation, Heating, Air-Conditioning, and Commercial Refrigeration Equipment Manufacturing (33341), Automatic Environmental Control Manufacturing for Residential, Commercial, and Appliance Use (334512), Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing (333415)

SIC

Air-Cond & Warm Air Heatg Equip & Comm & Indl Refrig Equip (3585), Auto Controls For Regulating Residential & Comml Environments (3822), Heating Equipment, Except Electric & Warm Air Furnaces (3433)

akta.pro primary industry

Mini-Split (Ductless) HVAC Installation (HSAOAGAD)

akta.pro secondary industries

HVAC Zoning, Smart Dampers & Ventilation Control (HSAOANAB), Smart Thermostat & HVAC Automation Integration (HSAHADAC)

Keywords

• Ductless heat pumps
• Residential HVAC systems
• Smart home climate
• Heat pump installation
• Energy efficient heating

Headquarters

HQ city

Redwood City

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2C

Offering type

Hardware or Manufacturing

Cost components

Supply Chain, Technology or R&D, Marketing or Sales, Personnel, Operations

Revenue model

1. Heat Pump Hardware Sales: Quilt sells ductless heat pump systems consisting of outdoor units, indoor units, and the Quilt Dial thermostat. Pricing is customized based on system design and home configuration, provided through certified installer quotes.
2. Financing Partnership (Palmetto): Through partnership with Palmetto, customers can access monthly lease plans starting at $117 per room per month, covering equipment, installation, maintenance, and repairs. This eliminates large upfront costs and creates recurring revenue through financing.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels8 records

Core offering

Quilt designs, manufactures, and sells a ductless heat pump climate control system comprising 2-zone and 3-zone outdoor units, indoor units, the Quilt Dial smart thermostat, the Quilt Sense smart module, and the Quilt App for iOS/Android. The system achieves 25+ SEER2 efficiency ratings and supports over-the-air software updates that improve performance post-installation. Installation is handled exclusively through a network of certified HVAC partners across North America.

Product overview

Quilt offers a unified ductless heat pump ecosystem comprising the Quilt Heat Pump System (with 2-zone and 3-zone configurations), Quilt Dial smart thermostat, Quilt Sense smart module, indoor units, outdoor units, the Quilt App for iOS/Android, and the Toolbox technician application. The system is installed exclusively through Quilt Certified Partners. Supplemental temperature sensors and the Palmetto Comfort Plan financing option extend the core offering. The product portfolio is positioned as the world's most efficient and intuitive ductless heat pump, featuring smart occupancy sensing, over-the-air updates, and industry-leading 25+ SEER2 efficiency ratings.

Differentiator

Problem solved

Functional benefit

Brands

• Toolbox: A mobile application for HVAC technicians designed to streamline installation processes, reduce callbacks, and improve business margins for installation partners.
• Quilt Hotels

Products and services

• Quilt Heat Pump System Ductless heat pump climate control system for residential heating and cooling, comprising outdoor units, indoor units, Quilt Sense smart module, and the Quilt Dial thermostat. Designed for whole-home and partial-home configurations including ADUs and homes without existing ductwork; installed exclusively through Quilt Certified Partners.
• Quilt 3-Zone Heat Pump Outdoor Unit Three-zone outdoor heat pump unit that expands the Quilt system to larger whole-home installations. Solves compressor low-speed control challenge using sensor data from approximately 1,000 installed units.
• Quilt Dial Smart Thermostat Next-generation smart thermostat that serves as the primary room control for Quilt systems. Can be wall-mounted or tabletop, enables room-by-room and whole-home control, and communicates directly with indoor units locally over Wi-Fi.
• Quilt Toolbox Mobile application for HVAC installation partners that streamlines Quilt heat pump installation, provides workflow guidance, and reduces post-installation callbacks to protect partner margins.
• Palmetto Comfort Plan (Quilt financing) Subscription/lease financing offering that bundles Quilt heat pump equipment, installation, maintenance, and warranty into a single monthly payment starting at $117 per room, eliminating the typical $15,000+ upfront cost barrier to home electrification.

Quantifiable outcome

• Up to 20% capacity boost via over-the-air update (heating from 20,500 to 25,200 BTU/hr, cooling from 19,700 to 24,000 BTU/hr)
• +5 more outcomes

Named customers4 records

Segments4 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability1 record

Feature7 records

Partnerships

Four partnerships are on record, tiered core and minor.

• PalmettocoreChannel Partner/ Reseller/ Distributor · 27 May 2026Partnership to offer heat pump systems through Palmetto Comfort Plan, bundling installation, maintenance, and extended warranty into single monthly payment starting at $117/room/month. Eliminates high upfront cost barrier to home electrification. Palmetto CEO stated goal is to make clean energy technology accessible to American homeowners nationwide.
• Anderson Heating & Air ConditioningcoreChannel Partner/ Reseller/ Distributor · 9 March 2026Springdale, Arkansas-based HVAC provider with over 50 years of local service became a Certified Partner, enabling offering of Quilt's smart ductless heat pump systems to residential customers in Northwest Arkansas. Partnership expands Quilt's certified installation network into new regional market.
• Southern Home ServicescoreChannel Partner/ Reseller/ Distributor · 17 February 2026Respected residential trade service consolidator selected Quilt to lead ductless heat pump expansion across nine major markets. Strategic partnership with established service consolidator accelerates market penetration.
• GreenSaversminorChannel Partner/ Reseller/ Distributor · 13 October 2025Local Portland partner bringing Quilt's smart climate control to Portland homeowners. Part of regional expansion strategy.

Scale indicators8 records

Recent moves10 records

Expansion highlights7 records

Direct peers

• Mitsubishi Electric Trane HVAC US: Market-leading ductless mini-split heat pump manufacturer in North America. Directly comparable to Quilt on the ductless/mini-split product category, serving residential customers through HVAC dealer networks with established cold-climate performance claims.
• Daikin: Global HVAC leader with a strong ductless/heat pump product line sold under Daikin and Goodman brands. Directly competes with Quilt in residential ductless heat pumps and offers smart thermostats and zoning controls.
• Fujitsu General: Established Japanese manufacturer of ductless mini-split heat pumps widely sold in North America. Comparable to Quilt on product category (ducted/ductless split systems), target residential market, and emphasis on efficiency ratings.
• LG Electronics (HVAC): Sells ductless and variable-speed heat pumps and connected HVAC controls through US dealer networks. Comparable to Quilt on ductless product offering and on the consumer-facing smart-control positioning.
• Gradient Comfort: Venture-backed startup building premium, design-forward heat pumps with smart controls for residential electrification. Closest venture-stage peer to Quilt in target market, product strategy, and climate-tech positioning.
• Bosch Thermotechnology: Manufactures high-efficiency residential heat pumps and ductless systems with connected controls. Directly competes with Quilt on efficiency-focused ductless/mini-split offerings in the North American market.
• ecobee (Generac): Smart thermostat vendor whose controls layer integrates with heat pumps and HVAC equipment. Directly comparable to Quilt on the smart-thermostat and energy-management layer (Quilt Dial / Quilt App).
• Midea Group: Global HVAC manufacturer with a growing presence in ductless and variable-speed heat pumps sold in North America. Comparable to Quilt on product category and on the use of JDM manufacturing for residential HVAC hardware.

Broad incumbents

• Carrier: One of the largest global HVAC incumbents with a full residential portfolio including ductless splits, central systems, and connected thermostats. Overlaps with Quilt on product category but competes through a much broader dealer network.
• Trane Technologies: Major HVAC manufacturer (including the Trane/Mitsubishi ductless partnership) with deep US dealer/service networks. Comparable to Quilt on residential HVAC offering but at much larger scale and broader product range.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

• Xx.com/QuiltAir
• LinkedInlinkedin.com/company/quilthome

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Funding overview

Funding rounds4 records

Investors14 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Quilt