While many cleantech companies require very large amounts of capital in order to get to market, there is a quiet group of cleantech companies bucking that trend.
Companies like Heartland Biocomposites (green building materials), RealTech (water testing) and TerraLUX (LED lighting) all built significant and growing businesses with compelling intellectual property and did so initially without multimillions in capital from venture funds (let alone tens or hundreds of millions). Because TerraLUX is one of our portfolio companies and I therefore know them best, their story is one I am able to share.
TerraLUX boasts customers like Cooper Lighting, Phillips, GE Healthcare, Snap-On Tools and many others. It has six awarded patents and eight more filed. Dr. Anthony Catalano founded the company in 2003 and, with exceptional technology smarts, creative boot-strapping and some of his own capital, he built a business with significant revenues, exciting gross margins and deep intellectual property — all without a penny of outside investment capital. And now, only after all those accomplishments, has TerraLUX closed a $5.6M financing from Emerald Technology Ventures and Access Venture Partners.
How did TerraLUX pull this off?