Mojave Energy Systems closed a $19 million Series B round, led by Fairtree Elevant Ventures to scale manufacturing, sales, and ArctiDry product development for its humidity-first liquid desiccant HVAC systems.
Mojave Energy Systems’ recent $19 million Series B round was led by new investor Fairtree Elevant Ventures (a European growth/expansion firm focused on energy, climate, and industrial technology), with a significant investment from new investor River Bay Investments. Returning investors At One Ventures, Fifth Wall, Myriad Venture Partners, and Starshot Capital participated, joined by new investors Cleo Capital and MetaTrail.
Use of proceeds centers on scaling the business: growing the sales organization, expanding manufacturing capacity, and continuing development of new products on the ArctiDry platform.
What is Mojave Energy Systems?
Mojave Energy Systems, headquartered in Sunnyvale, California, was founded in 2022 as a spinout from Xerox PARC (Palo Alto Research Center). Led by CEO Phil Farese, the company develops “Humidity-First Climate Systems” based on patented liquid desiccant technology. These systems treat humidity control as a primary design goal rather than a byproduct of temperature control, enabling independent management of cooling, heating, and dehumidification.
Core products on the ArctiDry platform include:
- ArctiDry DX: A liquid desiccant air conditioner, frequently deployed as a Dedicated Outdoor Air System (DOAS). It independently controls humidity and temperature.
- ArctiDry Hydro: A hydronic liquid desiccant air handling system launched in 2026. It pairs with existing chilled water plants to achieve supply-air dew points as low as 25°F (colder than conventional systems), extends chiller capacity, and improves overall plant efficiency by up to 20%.
Performance claims include 25–60% lower energy use versus standard HVAC (with customer reports often in the 30–60% range), typical payback under 18 months, and supply-air dew points down to 25–35°F depending on the configuration. Systems have accumulated hundreds of thousands of logged field hours (exceeding 100,000 for ArctiDry DX by late 2025) with strong uptime. Target applications span grocery, industrial dehumidification, healthcare, hospitality, education, commercial buildings, and data centers.
Earlier funding included a seed round of approximately $12.5–12.6 million (2023, co-led by At One Ventures and Fifth Wall with Xerox Ventures/Myriad participation) and a $9.5 million Series A (December 2024, led by Fifth Wall and At One Ventures, with returning and new investors including Earth Venture Capital), bringing prior totals near $25.6 million. Cumulative funding after the Series B is in the mid to high $40 million range per aggregated tracking data.
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The raise coincides with commercial buildings shifting humidity management from an incidental cooling side effect to a deliberate priority, driven by modern building loads (higher latent/humidity demands relative to sensible heat), energy costs, indoor air quality requirements, and decarbonization goals. Mojave positions its technology as uniquely capable of precise, efficient humidity control that conventional vapor compression systems struggle to match without overcooling.
Fairtree Elevant Ventures’ David Evans highlighted Mojave’s conversion of long term liquid desiccant R&D into deployable equipment delivering energy savings, superior humidity performance, healthier buildings, and lower carbon footprints. River Bay Investments’ Tom Leonard noted active introductions across grocery, data centers, hospitality, and schools, emphasizing sales growth and product pipeline support.
The company manufactures in Anderson, South Carolina, has expanded its U.S. sales partner network (and into Latin America), and continues R&D (including electrochemical regeneration pathways noted in prior rounds). Future product development aims to broaden the platform’s applicability.
This Series B marks a transition from early commercialization and product validation to scaled production and market penetration. Strong participation by prior climate and real estate focused investors (Fifth Wall, At One) alongside new growth oriented capital signals confidence in product market fit and operational readiness. The capital directly supports the go to market and manufacturing infrastructure needed to capture demand in humidity-sensitive commercial sectors where energy savings and precise climate control deliver measurable operational and sustainability returns.
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