For Immediate Release
UltraCell Insulation Closes Series A-1 Investment Round
Financing enables launch of high performance insulation plant in Western New York
Buffalo, NY – UltraCell Insulation, LLC (UltraCell), an emerging technology leader in the cellulose insulation industry, today announced the successful closing of its first external equity round. The firm has now secured a cumulative $5 million in equity financing to support the launch of commercial production. UltraCell Insulation makes high performance cellulose building insulation from recycled corrugated cardboard.
The financing was led by the Clean Energy Venture Group (CEVG) and Investors’ Circle’s affiliated SustainVC fund. The round consisted of $1.6 million in new funding, which complemented a recent $1 million bridge financing and prior investments that converted to equity as part of this round. 43North, the $5 million startup competition that is part of Governor Andrew Cuomo’s Buffalo Billion initiative, also converted a prior investment of $500,000 into equity in the company. This financing will enable commercial production of UltraCell’s high performance cellulose from a new facility being launched in the Buffalo area.
“This financing represents a major milestone for the business,” commented UltraCell’s CEO, Jonathan Strimling, “It positions us to move aggressively into the market in 2018 from our Buffalo facility with a breakthrough product, which will support markets in the Northeast, MidAtlantic, and Midwest.” UltraCell plans to roll out additional facilities across North America and internationally, leveraging its unique technology to expand the market for cellulose insulation globally.
Mark Bernfeld, who represents CEVG on UltraCell’s board, commented, “CEVG invests in, and partners with, exceptional teams to commercialize disruptive advanced energy technologies. We are pleased with the technical innovation and the scale of the production capabilities that UltraCell is establishing, and even more impressed by the substantial pre-orders the company has already generated.”
Alex Gress, the Executive Director of 43North commented, “UltraCell’s success in securing financing is a reflection of the quality of their product, the opportunity in the marketplace, and the strength of their team. 43North is excited that UltraCell will be investing millions of dollars in manufacturing infrastructure right here in Western New York, and we expect that the company will create dozens of high quality jobs in our community. We look forward to what’s ahead for UltraCell and our region.”
“After years of significant investment in technology development, we are extremely thankful for the continued support of CEVG, Investors’ Circle, and 43North, which will allow us to launch commercial shipments in 2018,” concluded Strimling.
About UltraCell Insulation, LLC
UltraCell Insulation LLC is launching a breakthrough technology for the production of an advanced form of cellulose insulation. Founded in January 2013, UltraCell employs a patented process to convert corrugated cardboard into high-performance cellulose insulation. The product not only meets conventional industry and regulatory requirements, but it is exceptionally clean and uniform, with lower levels of dust. The company’s unique technology allows this next generation product to be produced and sold at the price of conventional cellulose insulation.
About Clean Energy Venture Group
Clean Energy Venture Group is an investment group that provides capital and support to early stage clean energy companies that have the potential to mitigate climate change and to achieve attractive financial returns. The group is comprised of seasoned operating executives with strong capabilities in the energy and environmental sectors. With each investment, CEVG brings not only capital, but also the value of the team’s experience and network to help companies achieve their goals. The group’s focus is New England and New York, but CEVG occasionally invests in companies located in other areas. CEVG collaborates with entrepreneurs and other stakeholders in an atmosphere of mutual respect, intellectual curiosity and analytical rigor. (www.cevg.com)
About Investors’ Circle and SustainVC
Investors’ Circle is the oldest, largest, and most successful impact investing network in the world (www.InvestorsCircle.net), and has propelled over $200 million into impact enterprises dedicated to improving the environment, education, health and community over more than 20 years. Investors’ Circle’s affiliated SustainVC series of funds back innovative entrepreneurs that share a vision of a sustainable, more equitable, and healthier world. (www.SustainVC.com)
43North is the $5 million startup competition, awarding cash prizes to some of the best entrepreneurs and startups from around the world. 43North winners also receive free incubator space in Buffalo for one year, guidance from mentors in related fields, and access to other business incentive programs such as START-UP NY. 43North operates through the support of Governor Andrew Cuomo’s Buffalo Billion initiative and grants from Empire State Development and the New York Power Authority. For more information about 43North, visit www.43north.org.
For more information, contact Jon Strimling