Focus Continues on Power
Generation and Distribution, Power Quality & Related Information
Technologies
SAN FRANCISCO, CA, October
10, 2000 – Nth Power Technologies, a pioneer and leader in the field
of energy and power industry venture capital, announced today that
it completed raising $120.5 million last week from new and existing
investors for its second venture capital fund.
Nth Power’s first venture
fund raised $63 million from strategic investors including ABB,
Cinergy, Energy East, Electricité de France, and Hydro Quebec. These
organizations are also participating in Fund II, joined by new strategic
and financial investors including Alliant Energy, Avistar, Ballentine
Capital, Bank of America Capital, Central Hudson Gas and Electric,
CIBC World Markets, First Energy Corp, Itochu International Inc.,
Lehman Brothers Venture Capital, Meridian Energy (New Zealand),
NiSource Development, Norsk Hydro (Norway), PanCanadian Petroleum
Limited and Pacific Venture Capital (a unit of PG&E Corporation.)
Nth’s investment interest
focuses on distributed generation and storage; energy-related communications,
information technology and business services; power quality; and
transmission and distribution automation.
Two of Nth’s portfolio companies
had their initial public offerings of common stock this year. Capstone
Turbine Corporation (Nasdaq: CPST) – which develops, designs, assembles
and sells micro turbines to provide electricity at the site of power
consumption and supplemental power for hybrid electric vehicles
– went public in late June at $16 per share and closed yesterday,
Day, October 00, at $00 per share.
Last week, Proton Energy
Systems, Inc., (Nasdaq: PRTN) completed its IPO at $17 per share,
and the stock closed yesterday at more than $00 per share. This
Nth portfolio company produces proton exchange membrane electrochemical
products that it employs in hydrogen generating devices, and in
regenerative fuel cell systems that function as power generating
and energy storage devices.
In addition to Capstone
Turbine and Proton Energy, Nth currently has significant investments
in companies such as Allconnect.com, Electronic Power Conditioning,
Evergreen Solar, Inari, MainStreet Networks, Metallic Power, NanoGram,
Nexant, Pentech Energy Solutions, Silicon Energy, UtilConnect, and
Water Management Services. Co-investors in Nth portfolio companies
include Crosspoint Ventures, Institutional Venture Partners, Integral
Capital, Morgan Stanley Ventures and Sevin Rosen, as well as Bill
Gates and Paul Allen.
“We are greatly encouraged
both by the strategic and financial success of our first fund, and
by the enthusiastic investment interest we generated for our much
larger second fund,†said Nth Power co-founder and co-managing director,
Nancy Floyd. “We have seen – and continue to see to an even greater
degree – strong and timely interest from major investors throughout
the fund-raising process, along with excellent deal flow from attractive
start-ups. This means we continue to be in a key position to explore
investment opportunities in a wide range of entrepreneurial businesses
with excellent technologies and, most importantly, the management
leadership needed to turn needed innovation into solid, growing
and potentially profitable enterprises.â€
Discussing the origins and
future focus of Nth Fund investments, Maurice Gunderson, co-founder
and co-managing director, said: “We first observed the trends that
would create tremendous opportunities for growth and innovation
in the energy space in 1993, stimulated by our assessment that deregulation
in the energy industry was coming and would produce significant
opportunities for entrepreneurs, their customers and, therefore,
for investors. In fact, we expected that the growth curve would
track what happened when deregulation hit the telecommunications
industry, and even we have been impressed by how much more rapidly
attention and capital is flowing into this arena.â€
Concluding his comments,
Mr. Gunderson said: “What is happening around the world – as the
availability, price and quality of electricity and other power-related
resources move into the center of public attention – is cause for
both concern and optimism. Public concern is likely to keep driving
appropriate deregulation and free market activity, and the resulting
innovative technological solutions will provide concrete cause for
optimism. With these and other such forces in motion, the long-range
objective is to better serve both the developed and undeveloped
worlds with the quantity and quality of energy needed to power human
progress.â€
About Nth Power Nth Power
Technologies is a venture capital firm focused on high-growth investment
opportunities arising from the restructuring of the global energy
utility marketplace. The fundamental changes taking place in the
$300 billion global energy utility industry have given rise to many
venture capital investment opportunities, and Nth Power has emerged
as a leading source of venture capital for this sector. The firm
is managed by a professional investment team with extensive experience
growing successful companies in the energy and communication fields
and managing venture capital funds. For further information, go
to http://www.nthfund.com