Nest
Founder(s): Tony Fadell, Matt Rogers
Year founded: 2010

Meta Description
Nest reinvents unloved but important home products, like the thermostat and the smoke alarm. We focus on simple, beautiful and thoughtful hardware and services.

Background
In 2005 Tony began working with contractors to design and build his own energy-efficient smart home. He was presented several “smart” thermostats by his contractor. The devices were expensive and far from “smart”. They had limited functionality, cryptic UIs, uninspiring designs, and unjustifiably high price points. Tony realized that the smart thermostat he wanted did not exist. Thus in 2007 he spent 5 months researching the energy sector and thermostats. His research showed a promising opportunity to disrupt the energy market with a new kind of thermostat. He founded Nest and launched that thermostat in 2010.

Problem(s)
The thermostat is a ubiquitous home appliance. Yet the average thermostat has not had any major changes (besides switching from analog to digital) in the last 30 years. A standard thermostat can only be controlled while you are home. It is often equipped with difficult to navigate UI that is not appealing to non-tech savvy family members. Most thermostats are “dumb” because they cannot connect to the internet, your smartphone, or other appliances.

On a bigger scale, utility companies are being strained during peak usage times. A hot summer day in a big metropolitan area will cause usage spikes that can potentially overload the power grid. To battle this utility companies allocate 10 billion dollars to give away as rebates to consumers. The rebates incentivize consumers to limit energy usage during peak times. The problem is many consumers are unaware of these rebates and when they should limit their energy use in order to earn them. Instead of placing the burden on consumers, why can’t a thermostat balance out energy consumption throughout the day? This load balance could ease the strain on the power grid, save consumers money, and qualify them for rebates.

Solution
A beautifully designed and easy to use thermostat that can be controlled anywhere by a smartphone or PC. The intuitive UI can be controlled by anyone in your home and allows for quick and easy configuration to get the most out of the device. Utility companies pay consumers to opt in their energy conservation programs. Consumers simply opt in and allow Nest algorithms to control usage. Consumers get paid through rebates because the Nest thermostat controls energy consumption during peak energy usage times.

Nest devices have powerful standalone applications but can also complement each other. For example the Nest smoke alarm can detect carbon monoxide and notify the thermostat, which then turns off the furnace (most common source of a carbon monoxide leak). Nest is on a mission to reinvent the “dull” appliances in your home by making them smart, connected, and easy-to-use.

Source(s)
Foundation 36 // Tony Fadell
Nest’s Tony Fadell on Smart Objects, and the Singularity of Innovation