Nitride Solutions finalizes Series A funding round at $2.5m

Nitride Solutions Inc of Wichita, KS, USA, which is developing substrates for LEDs, lasers and power electronics, has closed its Series A financing round (which was oversubscribed) at $2.5m. After already participating in the round last June, Nebraska Angels and Aurora UV Inc of Santa Barbara, CA (which makes ultraviolet LEDs for applications including air and water purification) have again joined lead investor Midwest Venture Alliance (MVA) in completing the round.

Founded in 2009, Nitride Solutions’ leadership has 30-plus years of experience in advanced materials businesses (both start-ups and Fortune 500 companies) and a total of 25 years in nitride crystal development. The firm maintains strong ties to Kansas State University in Manhattan, KS, with key employees and advisors hailing from the university, as well as University of California Santa Barbara (UCSB).

The firm is now finishing commercialization of a high-volume manufacturing technology that aims to deliver high-volume, low-cost aluminum nitride (AlN) substrates. With projected defect rates 10 times lower than substrates currently on the market, the substrates will improve the performance, efficiency and cost of existing LED, laser and electronic products, while also making deep ultraviolet (UV) devices, the firm reckons. The result should be improved white lighting for consumer and industrial uses, more efficient power systems in hybrid vehicles, sharper color on flat-screen TVs, and better air and water purifiers. The firm will use the Series A funding to perfect the technology and begin sampling in first-quarter 2012.

“We are excited about the potential for this technology, and the strong demand for the Series A financing is a demonstration of our confidence in the company’s ability to execute on its business plan and deliver this revolutionary technology to market,” says Nebraska Angels’ president Bart Dillashaw.

“Fund raising in this economy is difficult,” notes Trish Brasted, managing member, MVA Capital Group. “All of us at the Midwest Venture Alliance are very excited to see the support from the regional investment community, as demonstrated by the oversubscribed Series A offering.”