Fallbrook Raises Additional $6M for Innovative Transmission

8/31/10Follow @bvbigelow

San Diego’s Fallbrook Technologies has raised another $6 million in venture capital, according to an amended IPO registration form the company filed with government regulators Friday. Fallbrook, which is developing an innovative continuously variable transmission (CVT) for a variety of applications, originally filed for an IPO in February and revised its S-1 form previously in May.

In its latest amended filing, which was reported over the weekend by The Wall Street Journal, Fallbrook discloses lower revenues, pushes out plans to expand into some new markets, and outlines a variety of new partnership agreements.

The company, which bills its CVT transmission as a greener and more fuel-efficient technology, plans to introduce one CVT transmission specifically for automotive accessory drives (such as alternators and air conditioners) and another developed for small wind turbines next year. The company says it has pushed out its plans to enter the lawn care market, from 2011 to 2012, and is developing a CVT transmission for use by electric vehicles in 2013.

Fallbrook launched the first version of its NuVinci transmission for bicycles in 2007. In its filing Friday, the company says its total revenue fell by 32 percent in the first six months of this year, as Fallbrook began phasing out its original N171 for an improved second-generation model, the N360. In a press release scheduled for release at the Eurobike trade show, which is set to begin tomorrow in Friedrichshafen, Germany, Fallbrook says its N360 design is lighter and smaller, and now fits within the frame drop-out for the rear wheel.

With its planned expansion into other markets, such as automotive accessory drives, Fallbrook says it has reached a series of partnership agreements with other companies, including a deal with a Chinese bus manufacturer and a Chinese maker of power train auto parts.

With the most recent Series E venture investment, entities associated with Robeco, the investment arm of Rabobank of The Netherlands, have a 24.6 percent stake in Fallbrook. The Santa Barbara, CA, cleantech venture firm NGEN Partners increased its ownership from 23.7 percent to 24.2 percent. Both groups provided $2 million in additional venture funding, as did a third, unidentified venture investor.

The company says it has raised a total of $62 million to develop its core CVT technology and develop products for various markets, and has a combined total of 365 patents and patent filings protecting its technology in the United States and around the world.


Bruce V. Bigelow is the editor of Xconomy San Diego. You can e-mail him at bbigelow@xconomy.com or call (619) 669-8788 Follow @bvbigelow

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