Wind Turbine Supplier Danotek Closes In on $20M Series B Financing
Danotek Motion Technologies is finalizing a deal to secure $20 million in new financing, company officials told Xconomy.
The startup, based in Canton Township, MI, will use the money to scale up production of its permanent magnet generators for wind turbines.
The company’s existing investors, which include Khosla Ventures, CMEA Capital, GE Energy Financial Services, and Energy Capital Management, are all participating in the Series B round though Danotek may add a new investor, chief financial officer Frank Alex says.
Founded in 2001 by three former General Electric engineers, Danotek in recent years has made a big push into wind power. The startup claims its technology, which generates electricity from a constant magnetic field, can help manufacturers design efficient, lightweight, and less expensive wind turbines.
Danotek used much of the $16.25 million it raised in its Series A round to move from Ann Arbor to Canton Township, where it built its headquarters and production facility.
As of the first quarter of this year, the company has about a $50 million backlog in orders, says CEO Don Naab. The company’s customers include major turbine makers like General Electric, Clipper, DeWind (a unit of Daewoo), and WinWinD in Finland.
Naab expects the facility to hit full production in 2012.