BASF Venture Capital increases stake in U.S. nanotech company SDCmaterials
SDCmaterials plans production at BASF's Schwarzheide site
BASF Venture Capital GmbH is increasing its shareholding in SDCmaterials, Inc, Arizona, U.S. SDCmaterials develops and produces nano materials for customers in the automotive and chemical industries as well as for the medical technology sector.
SDCmaterials has raised $6.3 million (approximately EUR4.7 million) in its Series A financing round, of which BASF Venture Capital is providing $2 million (approximately EUR1.5 million). Other investors include Emerald Technology Ventures. BASF Venture Capital's U.S. subsidiary invested $600,000 in a seed financing round last year in SDCmaterials. SDCmaterials, which was founded in July 2004, will use the proceeds from the financing round to increase its workforce, and expand production capacity in the U.S. and Germany.
The American start-up's materials are used primarily for advanced catalysts and advanced ceramic materials. Using a method where materials are evaporated in an electrically-generated plasma, SDCmaterials can produce several grams of a wide range of nano powders within a very short time, and thus support customers in significantly reducing development times of catalysts or inorganic materials. According to the company, by up-scaling its process to ton scale, SDCmaterials can offer its customers large quantities of nano materials in a constant quality.
BASF has an ongoing program at its Schwarzheide chemical site in Germany through which small, independent companies are able to lease commercial space and use established manufacturing infrastructure. SDCmaterials will take advantage of this program and plans to start small-scale production of nano materials in September 2008. The American start-up will invest roughly EUR3 million in establishing pilot plant stations, laboratories and offices in the northern part of the site.
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