Entrepreneurs for Impact (EFI) Podcast: Transcripts
#169:
Amit Gupta, CEO of Aeroseal — $100M Invested in Heating and Cooling Energy Efficiency. 40 Years of Lab Testing. Managing Our Energy Like We Manage Our Time. Determined and Detached.
Podcast Introduction
Chris Wedding:
My guest today is Amit Gupta, CEO of Aeroseal. Aeroseal is a climate tech company with $100 million of investor capital raised to date, focused on increasing building efficiency by reducing HVAC losses in the duct system and leaks in the building envelope using patented technologies.
Amit is a mechanical engineer with experience at Tata Motors, Carrier, and 75F, as well as being CEO of Aeroseal since its founding in 2010. In this episode, we talked about how 40% of global greenhouse gas emissions are tied to buildings, how 50% of these emissions are linked to HVAC, and their quote unquote "fix a flat" tagline for curing leaking buildings of this energy waste. We also discuss why their solution is as safe as bubblegum, the 40 years of lab testing for their technology, incubation at Carrier, their changing business model from simply selling machines to leasing plus software, why they raised capital after 10 years of high-margin operations, his desire to be more courageous and lead like his hair was on fire, and the role of meditation in his growth.
Our need to manage energy as well as or better than we manage our time and a whole lot more. Hope you enjoyed, and please give Amit and Aeroseal a shout-out on LinkedIn, Slack, or Twitter by sharing this podcast with your people. Thanks.
Podcast Introduction
Chris Wedding:
Amit Gupta, Founder and CEO of Aeroseal. Welcome to the podcast.
Amit Gupta:
Thank you, Chris. Thank you for having me. It's my pleasure.
Chris Wedding:
So can you start by describing the size of the problem that you all are tackling in the built environment or really in climate change? And I don't know how many other folks are solely focused on this solution for the last 14 years.
Amit Gupta:
I started this company almost 13 years back when we separated from Carrier Corporation, and I had this epiphany or this realization that 40% of all GHG emissions are contributed by buildings. Buildings are literally killing our planet. Right? And if you look at it, 50% of that 40%, which is now 20% of all GHG emissions, are due to heating and cooling the buildings. Right? And 50% of that is just getting wasted due to leaks in building envelope and air ducts. Right? And that is almost 10% of all GHG emissions. I mean, it is more true in some areas than others, but that's the magnitude of the problem. And nobody in the world is systematically solving that for new buildings as well as for existing buildings.
We are the only company, and we have the only solution in many cases, many instances, which is systematically solving that problem. Right? And that's what drives us. That's the reason for our existence.
Chris Wedding:
All right, super compelling. Hot out of the gate, Amit. Good starting. So you mentioned this uniqueness in your solution. Clearly a big problem. So what exactly is Aeroseal's solution?
Amit Gupta:
Sure. Very simply stated, we call our solution "fix a flat" for the buildings. Right? So imagine an air duct behind walls in a building, and these air ducts exist since the building was built, and these air ducts leak. Like, in homes, the air ducts could leak 25 to 40%. I mean, US homes waste 540 trillion BTUs every year. Single largest reason for energy wastage in US homes because of leaking air ducts. Nobody is systematically solving that. So, the technology, the way it works— as I described it— "fix a flat" for the building, we pressurize an area, right? A building envelope or heavy air duct in this particular case. And we inject a few micron-sized, safe sealant particles. These particles float within the ductwork as it is in a pressurized state, and they try to escape from the cracks and the leaks.
And as they try to escape the leaks, it forms a rubberized plug while they're escaping from these leaks. Right? So that way, we don't require any physical access to the leak. Right? Since it's behind walls, it's impossible to get access. And we can seal up the ductwork or building envelope very perfectly. Right? We are the easy button for that solution or that problem.
Chris Wedding:
So clearly this is not your first rodeo, where you've got the phrase "easy button," "fix a flat." So lots of consumer testing to figure out which phrases make it simple to understand. I totally resonate with that. I think it's also easy to understand already for listeners that the size of the problem can help, and the uniqueness of the solution can help explain why you guys have been able to raise $100 million-plus in venture capital to really expand and increase the speed of your all's growth. You emphasized a certain word when you provided that explanation, which was "safe." So maybe some listeners think, oh, these small particles going into my ducts or my house. So maybe just elaborate on the "safe" part of what you just described.
Amit Gupta:
Sure. So, our material is made up of— I mean, the main component, let's say, is vinyl acetate polymer. And that polymer is used in chewing gums or in baby pacifiers, for example. Right? So it's an everyday product which is used, and we are basically able to. And so, if you look at it in the consistency before, when we atomize it— it's like Elmer's glue. It's not really Elmer's glue, even though it smells a little bit like that. So it's very safe in that way. Right? I mean, kids eat Elmer's glue while doing craft work. I understand.
Chris Wedding:
I do.
Amit Gupta:
I don't want to make it very, I mean, simple is not easy. Right? So after a lot of testing, we have been able to figure this material and the chemistry out. So that's what we use to seal up the air ducts. We have tested this in a lab with a lifecycle testing of over 40 years. So, it is really durable as well as safe to be used.
Chris Wedding:
Got it. And maybe describe who your customer is. I think it's easy to imagine who the ultimate beneficiary is of your solution. But who do you sell to in order to get to the ultimate end user who's benefiting?
Amit Gupta:
Sure. So, we have multitudes of customers we work with directly, right? So we sell our machines to HVAC contractors. And these HVAC contractors go to homeowners when they're replacing equipment or repairing an HVAC system, right? Because upstairs bedrooms are too hot and basements are too cold. You're not getting enough air. The air quality in the homes cannot be controlled because the return ducts are leaking. So, you got a lot of humid air in the home. All that gets solved by HVAC contractors. So we sell our machines to HVAC contractors, and then they provide the service to homeowners. We also sell a different machine, which we call Aero Barrier technology, which is AeroSeal building envelope technology. We sell those machines to insulation contractors, and we work with builders like D.R. Horton, Lennar, Pulte.
Beezer Homes, which is a national builder, is one of our investors as well. Because Beezer Homes has a stated— a public company— goal to build net-zero homes only by 2025. And that is based on a technology like ours. Because once you can control the leakage in the building envelope, now you can— right? Size the HVAC equipment, control the inside environment. Those are the builders we work with, and the installation contractors who provide insulation or air sealing for builders then provide the service to them. And thirdly, we work with large building owners, right? We work through ESCOs like JCI, Honeywell. So when they go to universities or military bases and improve all the buildings, they do a variety of things, right?
They change boilers, chillers, and do other energy improvement measures. They also use duct sealing as one of the key measures to improve the buildings. In most cases, in commercial buildings, our payback could be five, six years, which is very attractive for building owners. And payback isn't the only driver, right? Overall air quality, overall building pressurization, odor issues, ventilation problems— all good reasons. We are not only providing energy savings but also fixing the buildings at the same time.
Chris Wedding:
You mentioned something just now, which may be a newer concept to folks— pressurization of a building, pressurization of a duct. So explain why that translates to better comfort or better air quality.
Amit Gupta:
Sure. So, let me take a very specific example of pressurization, right? Many times, hospitals are a good place for us, right? Operating theaters want to maintain positive pressure so no air infiltrates and controls infections. And if you can't get enough air in the operating theater, you have pressurization issues. One way to get enough air is if the air ducts are leaking— which becomes difficult when systems get old— to put in a bigger fan or spin the fan faster, which costs more energy. Even then, physical limitations exist. We take care of that.
Many hospitals use that for positive pressurization. In a negative way, it’s similar to ventilation. For example, in hotels like JW Marriott, when you take a shower, the room fills with steam. It’s a misty feeling because ventilation isn't working well. One key reason is the vent shaft leaks. The fan tries to suck air to create negative pressure for ventilation, but it doesn't work well because the shaft was built without testing or code requirements. We can fix that. We've done a lot of work in the hotel industry for that.
Those are the two pressurization examples I can give.
Chris Wedding:
Great examples. I think listeners can also appreciate two things in what you said: one, the connection between energy and indoor air quality— both environmental and health goals— and, two, core desires like comfortable temperatures and humidity levels, versus the broader climate change message. It’s about addressing fundamental needs that drive customer behavior, which aligns with your solutions.
Amit Gupta:
Absolutely. Many organizations, big and small, have stated goals of making their buildings net zero. For example, companies like Tishman Speyer, Brookfield, Microsoft, Bank of America—all have ESG programs. We can help them meet those goals. But, honestly, most people act on these issues because it saves energy, improves assets, or reduces operating costs— not just because of climate change. There are different drivers that lead to ESG benefits. We’re not only focused on climate but on solving people's problems.
For example, in New York City, many apartments now have legal marijuana, and odor issues can be a problem. Ventilation can be poor— cooking fish, for instance, causes the whole wing to smell. Old buildings often have leaky ventilation shafts. We can fix that. We’ve done a lot of work in hotels and apartments to improve ventilation and reduce mold and respiratory issues. We're not just focused on CO2 or emissions but on everyday indoor air problems that affect health and comfort.
Homeowners, too, spend a lot of resources trying to manage humidity— using humidifiers, window ACs, or supplemental heaters— often with limited success. It’s a failure of how buildings are designed and built. We should build better homes that last 50-100 years, with improved insulation, sealing, and ventilation. Many builders resist updating codes, but we need to embrace innovation to make homes healthier and more efficient without prohibitive costs.
In Ohio, for example, there are no statewide requirements for building envelopes or testing. When we test a building, we see 10 to 12 air changes per hour— meaning, every six minutes, outside air infiltrates. This affects energy use and indoor air quality. We need better standards.
Chris Wedding:
So, about your business model— you sell machines and software, but how do you make money? Is it a one-time sale, repeat sales, leasing? Clarify how your revenue streams work.
Amit Gupta:
Before raising capital, we primarily sold machines and earned a fee each time the machine was used— through a software license fee and the polymer used in the machine. Recently, in some cases, we lease machines to contractors and building owners. We also work directly with large builders, helping them redesign homes to meet higher standards and sometimes providing the service ourselves, with our own crew or through dealers. Our goal is to create demand and adoption— every building, new or existing, should minimize waste.
Chris Wedding:
And your shift from CapEx to OpEx— leasing instead of selling— lowers the friction for customers to say yes, right? It aligns with trends in climate tech and renewables, making it easier to scale.
Amit Gupta:
Exactly. That’s correct.
Chris Wedding:
What motivated you, after operating profitably for 10 years, to seek Series A and B funding? And any tips on how you secured serious capital?
Amit Gupta:
Initially, we bootstrapped with friends and family, growing profitably for the first 10 years. We had patents for two new technologies— underground gas pipelines and building envelopes— which we wanted to bring to market. But we realized that making money isn’t enough; we wanted to have a bigger impact. So, in 2021, we decided to raise capital to accelerate growth— aiming for 40-50-60% growth instead of 20%. We partnered with breakthrough energy, EIP, and other investors like Building Ventures. Last year, we did our second round to continue expanding.
Chris Wedding:
And what do you think? Was it about the opportunity, the traction, or the team that attracted these well-known climate VCs?
Amit Gupta:
We demonstrated that our solution could be integrated into every HVAC replacement— every furnace or AC unit— making duct sealing standard. We showed how it could replace inefficient practices and align with the industry’s shift towards higher standards. Our vision was to make duct sealing as routine as replacing a furnace. When investors saw that vision and the impact we could make, they got excited. It’s about creating a new standard.
Chris Wedding:
It might seem that a profitable, growing business with big capital is an easy path, but it’s not. Can you share one or two of the hardest parts or pivots in your journey?
Amit Gupta:
Absolutely. Rapid growth is never easy; it requires building a new team capable of scaling, going to market faster, and transitioning from niche to mass adoption. Pricing, channel partnerships, and technology development all involve unknowns. We have to innovate constantly— new machines, new chemistry, new software, evolving platform technologies. It’s a fun but sleepless journey.
Chris Wedding:
It’s fun if it works out. Plenty of sleepless nights along the way, I’m sure.
Amit Gupta:
Yeah.
Chris Wedding:
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Amit, let’s switch gears. Imagine you’re talking to your younger self or an emerging professional entering the climate or energy transition sector. What advice would you give them to build impactful careers?
Amit Gupta:
The only advice I’d give myself is to be more courageous. I wish I had been more aggressive in the marketplace and with myself. I wish I had raised capital sooner. It’s a transition where entrepreneurs often focus on survival— making sure they stay in the game. But a switch happens when you become more deliberate about your mission. Surround yourself with like-minded founders; it’s a lonely journey. When I started, I lacked that cohort of venture capital support or mentorship. So seek advice, mentorship, and help. It makes the journey less lonely.
Chris Wedding:
Playing to win versus playing not to lose— that’s a good framing. Playing to win involves more risk, but it’s more rewarding. And building that support network— peer groups— is essential, because no one has all the answers. You need a bench of peers.
Amit Gupta:
Exactly.
Chris Wedding:
Next, what habits or routines keep you healthy, sane, and focused as an entrepreneur?
Amit Gupta:
Great question. The first three or four years, I was all on fire— hair almost gone, I think. But I learned that everyone should find their own value system. Be intentional about it. Keep asking yourself why you’re doing what you’re doing. I practice Vipassana meditation, which helps me a lot. I’ve developed routines: I try to work out daily, eat healthily, and manage energy rather than just time. Physical health, mental well-being, emotional stability— all are interconnected. Find what works for you. For me, holistic wellness is key.
Chris Wedding:
Managing energy instead of just time— I love that. Morning meditation, reflection, and staying connected to your values help maintain clarity and patience throughout the day. And exercises like F7— fitness, family, fun, friends— are simple but powerful check-ins.
Amit Gupta:
Yes, I remind myself that we do serious work, but not to take ourselves too seriously. It’s a puzzle, an optimistic challenge. Play to win, stay hopeful.
Chris Wedding:
Good words. I’ve started my own routines around that philosophy— staying hopeful, focusing on solutions. Because, honestly, after a long day of talking with CEOs and investors, I often see so much doom and gloom. But I believe in focusing on solutions and hope.
Now, for the last question. The microphone is yours. Who do you want to hear from? Customers? Future team members? A broader message for the built environment?
Amit Gupta:
I’d call on every homeowner to do their part— simple weatherization, duct sealing— which can make a huge impact. It’s comparable to switching from a gasoline car to a hybrid. No behavioral changes needed, just action. And for builders, I’d say, we’re building homes meant to last 50-100 years. We can build better homes— healthier, more efficient. Embrace innovation, update codes, and build with purpose. Action today— reducing emissions and improving homes— makes a real difference. Don’t wait. Act now. The carbon emitted today will stay in the environment for years. We must act now, because action today is ten times better than inaction over the next decade.
We can make a difference. And the final message: there’s a lot of talk about ESG, measuring everything, scope one, two, and three. I wish more of that talk translated into real action. Take action today. That’s what counts. Stay hopeful, stay committed.
Chris Wedding:
Great parting words. I remember when we moved into our current home, we had someone do air sealing and duct sealing. I wondered, how much leakage was really there? It’s like having a three-by-three-foot hole in your house. That’s a lot of waste.
Amit Gupta:
Exactly. You’re basically leaving a window open all the time.
Chris Wedding:
Well, I’m excited about the potential to impact so many new and existing buildings with your solutions— great payback, real impact. Rooting for your success, man.
Amit Gupta:
Thank you. Thanks very much.
Chris Wedding:
Thanks for listening. If you want more insights on climate tech, better habits, deep work— join the thousands of others subscribing to our newsletter at entrepreneursforimpact.com or connect with me on LinkedIn. That’s all, y’all. Take care.