Chapel Hill Internet of Things startup aims to improve energy efficiency

For decades, developers, architects and landlords have worked to make their buildings kinder to the planet and, in turn, cheaper for them to maintain in the long run. Now, a company in Chapel Hill is embarking on an ambitious vision that supports those goals.

As an Internet of Things startup, Smart OES provides energy optimization for buildings and is setting the tone for environmental issues startups across the Triangle. Its vision is to reduce greenhouse emissions for nonresidential buildings using a suite of wireless hardware devices that measure energy use throughout a building and then send that data to the Cloud, among other tools.

"All in all, Smart OES products usually reduce a building's energy bill by 10 to 20 percent such that they pay for themselves in the first year," said Bryan Hassin, CEO of Smart OES. "Though our customers are often driven by the financial value proposition, we are a very mission-driven company."

For Hassin and his team, green goals and economic goals must align for them to be successful. That's why one way they measure their revenue is via an estimation of greenhouse gas emissions reduced. Currently, the company estimates that for every $500 of revenue earned, greenhouse gas emissions are reduced by one ton.

Smart OES, which closed its first round of funding in 2017, completed product development in 2018 and began pursuing sales this year. It aims to optimize energy consumption in several ways.

For example, the wireless devices allow them to provide analytics and actionable insights to building managers. Customers can also opt-in to automated energy management systems that shut off non-essential devices, like copiers, when they're not in use. They also encourage building occupants to develop energy-saving habits with an app.

"We are still quite early stage but we have paying customers in Texas and North Carolina, and a strong pipeline of additional prospects," Hassin said.

Hassin, who has a track record of successful startups, moved to Chapel Hill so that his wife could pursue her PhD at the University of North Carolina at Chapel Hill. Arriving in the area with a relatively thin network, he found himself at 1789 Venture Lab, a coworking space focused on helping students explore innovation and entrepreneurship. There, he worked on the idea that would eventually become Smart OES.

Jim Kitchen, the founder of 1789 and a cornerstone figure in Chapel Hill's entrepreneurial community, was influential in helping Hassin connect with other professionals in the area. Thanks in part to these connections, Smart OES successfully launched and is now entering its next phase.

"We are redesigning our hardware products for lower cost and higher performance, and adding critical new software features to our Cloud. We expected to raise another round of funding to fuel growth, but we recently received an unsolicited offer to be acquired," Hassin said. "We are evaluating all of our options now, but always with an eye toward which path will lead us to the greatest impact."

Regardless of the road Hassin takes, he recognizes that Chapel Hill has helped provide him with the resources, network and encouragement needed to make Smart OES successful.

For example, the flexible office space arrangements offered at Carolina Coworking, a new addition to Chapel Hill's Franklin Street, have given his team a place to temporarily settle in and work alongside other ventures.

And while Hassin recognizes both Raleigh and Durham have more developed startup ecosystems, he says Chapel Hill offers something unique.

"I can walk to the office from home and there are dozens of great spots for lunch meetings along Franklin. There is a real community feel too, as I often bump into members of the ventures, university and policy ecosystems as I'm walking from one point to another — all this with access to all the big city amenities of the full Triangle a short drive away," he mused.

Hassin is happy to house his big ambitions in a relatively small town, especially since Chapel Hill itself is serious about environmental innovation, which indirectly encourages his efforts.

"The Town of Chapel Hill lends itself really well to environmental innovation. Look around — all the beautiful, old trees, creeks and trails — how could you not want to protect this magical place?," he espoused.

Formalizing Smart OES's and Chapel Hill's synergistic ties, Hassin is now working with John Richardson, the town's community sustainability and resilience officer, to improve the energy efficiency of town-run buildings.

"Many municipalities talk a big game about going green, but Chapel Hill is really walking the walk. Not only does that benefit me as a resident and taxpayer, but it also energizes us as a company. It can be lonely starting up a new venture, but we really feel like the town is on our side," Hassin said.

Hassin has global ambitions for the venture, estimating that, if Smart OES's products were deployed throughout its target market worldwide, global energy consumption could be reduced by more than 1 percent.