Danotek Motion Technologies, a Canton, Michigan-based company that develops and manufactures energy conversion systems for the wind energy and industrial markets, recently announced that it raised $15 million in a series B round of financing. This round of financing was led by Khosla Ventures, CMEA Capital, GE Energy Financial Services, Statoil Technology Invest, and included undisclosed independent contributors. GE Energy, Statoil and CMEA invested $7.25 million in Danotek in November 2008 and invested (with Khosla Ventures) $13.2 million in December 2009.
According to an article in Xconomy, Danotek was founded in 2001 by a group of former GE engineers, including Daniel Gizaw, who also worked at Cummins Power Generation, General Motors, and Ford Motor. Below is a brief Danotek video featuring Mr. Gizaw:
The company is now focused on products including permanent magnet generators (PMG) and power electronics for wind turbines. Danotek said it will use the funds from its series B round to commercialize its PMG technology and expand its research and development initiatives.
"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."
"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 post was written by Rob Stewart, a graduate student pursuing an M.A. in Urban Sustainability at the Antioch University of Los Angeles, and edited by Leonard Adler, Founder and Publisher of Green VC.