Red-hot Nextreme Thermal closes on $21.3M in new financing

Updated July 8, 2009

Red-hot Nextreme Thermal closes on $21.3M in new financing

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By Local Tech Wire

Durham, N.C. —

Nextreme Thermal may be all about cooling semiconductors but it’s red hot when it comes to investors despite a globally chilly economy.

The startup, a spin-out from RTI International, has closed on $21.35 million in a new round of fund raising, according to a document filed with the Securities and Exchange Commission.

The closing reflects the raising of an additional $5 million since a filing with the SEC on June 16.

"This funding from corporate investors represents a very significant validation of our company and technology, especially during these challenging times,” said Jesko von Windheim, Nextreme's chief executive officer. “With our Series B financing now fully in place, the company is well positioned to execute its product development and sales plan over the next two years.”

The new funding is to be used to expand Nextreme’s "presence and products for energy harvesting for micro and portable power along with solidifying its position for thermal management products in computing, consumer and mobile markets," the company said in an announcement Wednesday morning.

Last August, Nextreme closed on a $13 million “B” round of financing.

That funding positioned Nextreme to move into expanded production this year of its products that are expected to be used by the military and also in mobile devices. Some products have been on the market since October of 2007

Chart Venture Partners led the B round.

Also investing were In-Q-Tel, the investment arm of the Central Intelligence Agency, RTI, Redshift Venture Partners, and Harris & Harris Group. Japan-based ITOCHU Corporation and ITOCHU Technology Ventures also participated in the round.

With products such as the OptoCoolers, Nextreme has developed patented means of dealing with heat in electronics.

Nextreme technology helps cool light-emitting diodes and helps boost battery power in devices such as laptops and night vision goggles.

RTI spun out Nextreme as a separate company in 2004, and the company launched operations in January 2005. It has raised some $35 millionn.

In-Q-Tel first invested in Nextreme in 2006. The CIA unit also has provided Nextreme with research and development funding.

Nextreme closed on $8 million in 2004, with investors including RTP-based Aurora Funds. It kept the “A” round open through 2007, and Nextreme eventually raised $14 million.