Montreal has long been a global AI hub, anchored by pioneers like Yoshua Bengio and institutions such as Mila – Quebec AI Institute, one of the world’s leading centres for deep learning research. Out of that ecosystem, BrainBox AI emerged in 2017, co-founded by Jean-Simon Venne and Sean Neely with the goal of applying autonomous AI to one of the most overlooked drivers of climate change: building energy use.
Buildings account for 26 per cent of global energy-related carbon emissions, with heating, ventilation and air conditioning (HVAC) systems responsible for roughly half of a building’s total energy consumption. BrainBox AI set out to optimize that consumption through its proprietary, self-operating AI platform, which integrates seamlessly into existing HVAC systems. Pre-commercialization testing showed the technology could reduce energy costs by 25 to 35 per cent and cut emissions by as much as 40 per cent.
To bring that technology to market, BrainBox AI needed both capital and institutional support. In April 2020, the company raised a $12 million pre-Series A round led by Esplanade Ventures, an early-stage digital health venture fund with offices in Toronto and Montreal. “Esplanade recognized early on that this was a massive, untapped market—and that the technology would take time to mature,” says Sam Ramadori, BrainBox AI’s CEO from 2021 to 2025. “It’s similar to the trajectory we’ve seen with autonomous vehicles. These are complex systems, but once they work, they can have a transformative impact.”
It was that ambitious vision that persuaded Esplanade’s team to get involved. “BrainBox AI had a compelling business model, where customers pay from the energy savings generated, creating strong alignment with key stakeholders,” says Ella Seitz, Managing Partner at Esplanade. “This was an area where we believed we could add value by helping the BrainBox AI team with go-to-market strategy and opening doors in sectors we know well, such as health care and commercial real estate.”
From Pilots to Real-World Deployment
The first phase of the partnership was centered on taking BrainBox AI’s technology out of pilot environments and into large, real-world applications. Esplanade’s initial strategy was to target major office towers and the health care sector, including hospitals and pharmaceutical companies. But by the time the deal closed, the pandemic had upended those plans.
“Overnight, office buildings emptied and health care organizations shifted their full attention to vaccines and safety—not sustainability,” recalls Seitz. “We realized we needed to adapt our approach and think differently about where this technology could gain traction.”
Seitz decided to shift BrainBox AI’s focus to multi-site retail environments, where energy optimization remained a priority despite lockdowns. The pivot proved effective. The company began securing international deployments across the United States, the United Kingdom and Ireland, with its first major retail chain partnership coming in 2022: a nationwide rollout with Sleep Country Canada, covering 214 stores and 1.1 million square feet of retail space.
Throughout these deployments, Esplanade remained directly involved. “They were a strong partner in helping us navigate those early decisions,” says Ramadori. “Beyond that, they played a key role in making introductions to big potential customers, which was crucial at a time when we were still building out our sales capabilities.”
From there, momentum snowballed quickly. As BrainBox AI secured larger global retail clients, each deployment helped validate the technology and sign on new customers. That growing credibility culminated in BrainBox AI being featured by the World Economic Forum in 2023 as part of its ecosystem of leading tech innovators.
A Strategic Exit and Global Platform
After expanding into more than 30 countries and implementing its technology across millions of square feet of retail space, BrainBox AI attracted the attention of global HVAC giant Trane Technologies, which acquired the Montreal-based firm in January 2025. The transaction delivered a standout outcome for Esplanade Ventures, returning nearly half of its inaugural fund within five years. That achievement earned the firm the VC Regional Impact Award, Central Canada—Quebec, sponsored by KALOS.
“This was a great Canadian tech success story, and in a market where returns often take a decade or more, it was also a strong outcome for both us and our investors,” says Seitz. “Like most startups, things didn’t go exactly according to plan, but Sam and BrainBox AI’s leadership showed real resilience. They adapted, learned and continued to execute, which is what ultimately drove their success.”
Under Trane’s ownership, BrainBox AI’s technology is positioned to become ubiquitous across the planet. The company will serve as a cornerstone of Trane’s plan to establish Montreal as its global AI research hub, while expanding its technology into new applications, including residential buildings and refrigerated transport.
“Trane is deeply committed to sustainability, which makes it a natural home for BrainBox AI,” says Ramadori, who stepped down in 2025 to join Yoshua Bengio’s LawZero, a nonprofit focused on developing safe-by-design AI systems. “Climate tech is hard; it requires courage, conviction and a willingness to build in the physical world. Esplanade believed in us from the beginning, and that support made all the difference.”
