Modumetal Raises Cash to Make Durable Parts for Oil and Gas Sector
Modumetal, the Seattle company making corrosion-resistant metal alloys and coatings with applications in industries including oil and gas, has received $33.5 million in new capital from investors including Chevron Technology Ventures, BP Ventures, and ConocoPhillips.
The funding, described as an expansion round in a news release Tuesday and detailed in an SEC filing, was led by Peter Thiel’s Founders Fund, with participation from Sunshine Tech Limited, Steve Singh, Catamount Ventures, Second Avenue Partners, Goldenseeds, Alliance of Angels members, and Hercules Technology Growth Capital, which also provided debt financing. In an earlier SEC filing, Modumetal disclosed a $7.4 million debt financing.
Modumetal, incorporated in 2007, has been developing nanolaminated metal alloys that can beat traditional metals on strength, weight, corrosion resistance, and durability, the company says. With the opening of a new manufacturing plant in Snohomish County, north of Seattle, Modumetal now aims to accelerate production of its novel materials, and to do so at a competitive price.
The company says this latest investment will enhance its manufacturing capabilities with a specific focus on the oil and gas industry, which has been testing Modumetal fasteners, pumps, valves, and other components in full-scale trials.
The industry, in addition to being a customer, has backed Modumetal’s development. Chevron and ConocoPhillips also participated in the company’s 2012 funding round.