Microstaq Inc. Secures $12.5 Million in Series B Financing
Funding led by Good Energies with continued backing from existing investors Yaletown Venture Partners and Polygon Group.
Austin, TX – September 22, 2008 – Microstaq Inc., today announced that it has closed a $12.5 million Series B financing round. Microstaq is the world leader in the design and manufacture of Micro Electro Mechanical Systems (MEMS) based flow control valves that enable material energy savings in HVAC, Refrigeration, Automotive, and other sectors. Funding was led by Good Energies, a leading global investor in renewable energy and energy efficiency, with follow-on investments from existing investors Yaletown Venture Partners and Polygon Group. Microstaq intends to use the investment to expand the sales and distribution of its patented MEMS-based valve technology.
MEMS valves have existed for some time, but Microstaq is the first company to develop MEMS valves and commercialize them for macro-flow and macro-pressure fluid control applications at extreme temperatures. These characteristics are what make the products suitable for a number of different applications, including heating, ventilation and air-conditioning (HVAC) systems. HVAC represents roughly a quarter of all electricity consumption in the US, so improvements in the energy efficiency of these systems can have very large environmental and economic benefits. Microstaq’s products enable energy efficiency gains of 20% or more in HVAC systems. Energy savings come from the valve’s ability to precisely and electronically control fluid flow, down to 0.5% increments, which allow systems of all types to be more efficiently operated. The MEMS valves also have fewer moving parts than their conventional counterparts, increasing reliability and reducing maintenance costs. Their electronic controllability eliminates the need for ‘tuning.’ Microstaq’s products also offer lower overall system cost. The company is now in late stage development work with major HVAC OEM manufacturers.
“The commitment by this esteemed group of investors with expertise in the energy efficiency sector is a clear affirmation of our technology, industry-leading position and growth potential,” said Sandeep Kumar, CEO of Microstaq. “We are excited to have these investors on our team as we continue serving our existing customers, identifying new clients and developing additional energy efficiency applications for our revolutionary products.”
Since Microstaq’s Series A financing round in 2006, the company has proven its products’ superiority across a broad range of applications. In early September, at DEMOfall 2008, Microstaq launched a series of new products for the HVAC/R market that offer some of the most cost effective ways to increase energy efficiency in the industry, while reducing maintenance needs and extending system life. The company has also gained the interest of some of the largest HVAC/R OEM’s who are assessing the Microstaq MEMS valve for adoption into their platforms.
“Good Energies’ investment in Microstaq is part of our strategy of investing in pioneering companies that have created game-changing energy efficiency products,” said John Breckenridge, Managing Director of Good Energies. “Microstaq’s MEMS valves are a leap forward in valve design, and have the potential to yield tremendous energy savings across a number of industries. We look forward to working with Sandeep and Microstaq’s management team and leveraging our knowledge of the energy efficiency industry to help the company achieve its objectives for the transformative technology it has developed.”
About Microstaq: Microstaq is a global supplier of silicon MEMS based fluid control solutions. Customers benefiting from Microstaq’s electronic refrigerant expansion control technology include the world’s largest HVAC/R providers. Silicon MEMS based fluid control solutions, which can be customized for virtually all fluid media, have applications in HVAC/R, automotive, medical and industrial products and systems. For more information, visit www.microstaq.com.
About Good Energies: Good Energies is a leading global investor in renewable energy and energy efficiency. The firm invests in solar, turbine-based renewables, green building technologies and other emerging areas within clean energy. Good Energies is guided by the “3-P” principle of People-Planet-Profit and looks for meaningful, long-term investments in companies with outstanding growth potential. The firm was established to help drive the global transition to a low-carbon economy and, in the developing world, to support poverty alleviation through energy access.
Good Energies, founded in 2001, manages the renewable energy portfolio of COFRA, a family owned and managed group. It operates globally from offices in London, New York, Toronto, Washington, D.C., and Zug with an annual investment budget of EUR 350 million (US$ 500 million) and a current portfolio market capitalization of more than EUR 4 billion (US$ 6 billion). For more information, visit www.goodenergies.com.
About Yaletown Venture Partners: Yaletown Venture Partners is headquartered in Vancouver, Canada. Yaletown is backed by leading institutional investors in Canada and the United States and by a network of successful technology entrepreneurs, executives, and angel investors. Yaletown leverages an extensive on-the-ground network to seek out the most promising early-stage cleantech deals in British Columbia, Washington, and Oregon and the most promising information technology start-ups in British Columbia. Then we take an active, lead role with entrepreneurs, building teams and well-financed companies that can dominate growing markets. We are laser-focused early-stage investors in the sectors and geography that we live and breathe every day.
About Polygon Group of Companies: The Polygon Group of Companies is a diversified, professionally-managed investment firm with active current portfolios in technology, resources, agriculture, and real estate.
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