Flywheel Maker Pentadyne Gets $22M
In another sign of confidence in the market for flywheel UPS systems, Pentadyne Power Corporation announced this week that has closed $22 million in financing from its existing investors. The funding will be used to support the company’s expansion into new markets. Pentadyne’s flywheels are resold by Emerson Network Power under the Liebert FS brand.
“This latest round of financing comes from our existing investor base – support from the folks who know the most about our company, our products, our talent and our capabilities,” said Mark McGough, President and CEO of Pentadyne. “The commitment of these investors to continue their interests in the company speaks volumes about their confidence in the current and coming success Pentadyne enjoys in the marketplace.”
A flywheel is a spinning cylinder which generates power from kinetic energy, and continues to spin when grid power is interrupted. In most data centers, the UPS system draws power from a bank of large batteries to provide “ride-through” electricity to keep servers online until the diesel generator can start up and begin powering the facility.
Recent interest in green data centers appears to be boosting interest in flywheel UPS systems, as both Pentadyne and its primary competitor, Active Power (ACPW), say their products are gaining momentum. Pentadyne says it shipped 34 percent more flywheel systems than Active Power in the first half of 2008 to become the market leader, while Active Power just reported its largest single order ever with a large search company.
Pentadyne executives say these trends helped boost confidence in the company’s trajectory among investors. “These recognitions of our company’s success in the marketplace are echoed in the enthusiasm and financing commitments among our core investors in this latest financing round,” said Mark Campion, Executive VP and CFO of Pentadyne. “They have thoroughly scrutinized our current business model and our forward-looking plans. Particularly in light of the current climate within venture capital, we are proud that they found Pentadyne to be an exceptional investment.”