Danotek said it raised $15 million in a Series B funding led by Khosla Ventures, CMEA Capital, GE Energy Financial Services and Statoil Technology. The company makes magnet generators for use at wind farms and will use the money to kickoff production as well as expand research and development.
Khosla Ventures, CMEA Capital, GE Energy Financial Services, and Statoil Technology Invest lead $15 million in Series B round for Danotek
Canton, MI (August 30, 2011) – Danotek, a company that develops and manufactures permanent magnet generators (PMG’s) and related converter systems that deliver wind energy to the power grid, today announced that it has secured $15 million in funding. Led by four of the world’s leading renewable energy venture capital firms, Khosla Ventures, CMEA Capital, GE Energy Financial Services, and Statoil Technology Invest, along with independent contributors, the Series B financing round will help bring to market new technology that will make wind turbines more efficient, reliable, and affordable. The funds will be used to expand research and development initiatives, as well as launch initial production.
“Our leading PMG technology, combined with our commitment to effective partnerships with our customers, has already been rewarded with orders exceeding $50 million. The fact that our current investors want to continue supporting us via the B-round illustrates their confidence in our technology and leadership team,” noted Don Naab, Danotek’s President and CEO. “We are already contracted with some of the wind industry’s leading turbine manufacturers, with our first systems going up-tower later this year, and we’re engaged in multiple negotiations with several other globally-recognized turbine manufacturers. Danotek is on track and well positioned for success.”
Danotek’s patent-pending variable PMG’s are a technological leap forward for the wind energy industry. PMG’s save more than $1 million per typical utility-scale turbine for wind farm developers, owners, and manufacturers over the life of the turbine. Their unique and simplified design offers highly efficient performance even at low wind speeds. They are significantly more efficient than conventional generators (with efficiency rates exceeding 98 percent), and they incur lower operating and maintenance costs. They are half the weight of conventional generators and deliver improved reliability because they contain no “wear-and-tear” parts.
“At Khosla Ventures we invest in technologies with the potential to disrupt their industries,” said founder Vinod Khosla. “The latest round of orders Danotek has received for its permanent magnet generators is just the beginning. We look forward to Danotek’s continued growth by means of company innovation, partnerships, and customers across the globe.”
“Danotek’s products improve the efficiency and reliability of the drive-train, which is critical for its customers. We’ve been impressed by its proven commercial traction and increased our investment so Danotek can continue to grow its customer base and extend its product line,” said Rachel Sheinbein, partner at CMEA Capital. “We believe that the company is well-positioned to become a leading force in the wind energy industry.”
This latest round of venture capital brings the total private funding invested in Danotek to $41 million. The cash infusion comes as clean and renewable energy remains a high priority for governments, utilities, consumers, and communities around the world.
About Danotek Motion Technologies
Danotek Motion Technologies develops and manufactures highly efficient energy conversion systems for the wind energy and industrial markets. Danotek has patents pending on several innovative products, including permanent magnet generators (PMG’s) and power electronics for wind turbines as well as variably speed propulsion and accessory drives for the electric and hybrid electric vehicle markets. The company is based in Canton, MI. For more information visit www.danotekmotion.com
About Khosla Ventures
Khosla Ventures offers venture assistance, strategic advice and capital to entrepreneurs. The firm helps entrepreneurs extend the potential of their ideas in breakthrough scientific work in clean technology areas such as solar, battery, high efficiency engines, lighting, greener materials like cement, glass and bio-refineries for energy and bioplastics, and other environmentally friendly technologies as well as traditional venture areas like the Internet, computing, mobile and silicon technology arenas. Vinod Khosla founded the firm in 2004 and was formerly a General Partner at Kleiner Perkins and founder of Sun Microsystems. Khosla Ventures is based in Menlo Park, California. For more information visit www.khoslaventures.com
About CMEA Capital CMEA Capital provides capital to entrepreneurs and investors in the life sciences, energy & materials, and information technology sectors. Through its combination of solid scientiﬁc credentials and seasoned management expertise, CMEA identiﬁes, funds and manages new businesses based on the emerging, interdisciplinary science required to meet the challenges and opportunities of a rapidly changing global economy. The firm currently manages seven funds representing investments in excess of $1 billion. CMEA has been an early stage investor in many leading companies, including Flextronics, Symmx, Codexis, Maxygen, A123 Systems, Entropic, Silicon Spice, Luminate (formerly Pixazza), Blekko, and Jobvite. For more information, please visit www.cmea.com
About GE Energy Financial Services
GE Energy Financial Services’ experts invest globally with a long-term view, backed by the best of GE’s technical know-how, financial strength and rigorous risk management, across the capital spectrum, in one of the world’s most capital intensive industries, energy. GE Energy Financial Services helps its customers and GE grow through new investments, strong partnerships and optimization of its approximately $20 billion in assets. The company was named by the Cleantech Group as one of top 10 most active venture capital investors in energy technology companies in 2010. GE Energy Financial Services is based in Stamford, Connecticut. For more information, visit www.geenergyfinancialservices.com
About Statoil Technology Invest (SVI)
SVI is Statoil ASA’s seed/venture team investing in the energy sector in Scandinavia, Europe, and North America. The team is managing Statoil‘s venture portfolio of around 30 companies and has provided seed project finance to some 350 companies. The close cooperation with technology users as well as Statoil’s in-house R&D gives SVI a unique ability to review and help build young companies with the potential to develop break-through technologies needed in the energy sector. SVI is located in Stavanger, Oslo, and Trondheim. For additional information please visit http://innovate.statoil.com