Panasonic-backed ZettaCore scores $21M as it eyes nanotech for solar thermal

Denver, Colo.-based ZettaCore secured $21 million in Series C funding for its molecular electronics that improve the performance, cost and energy use of semiconductors.

But CEO Subodh Toprani told the Cleantech Group the company is also developing ionic liquids that could provide heat storage in solar thermal power plants.

"We're in discussions with some potential users of these," he said. One of the advantages of solar thermal technology is that it holds promise to store energy in the form of heat for use in peak demand (see Cleantech Group picks winners and losers in concentrated solar thermal).

Toprani wouldn’t disclose the “secret sauce” behind its ionic liquids, but said ZettaCore is interested in working with companies building solar thermal power plants. The company plans to make future announcements once it has customers. Toprani would like to eventually put the infrastructure in place to supply ionic liquids, in thousands of liters, to customers.

A third application of ZettaCore's molecular technology is to improve energy storage in capacitors and other high energy density devices in high temperature environments. 

This week's Series C close included new investor Panasonic Venture Group, the investment arm of the global consumer electronics leader Panasonic (NYSE: PC).

Other new investors included Globis Capital Partners, Itochu Technology Ventures, Yasuda Enterprise Development and Epic Ventures, joining previous investors Draper Fisher Jurvetson, Kleiner Perkins Caufield & Byers, Radius Ventures, Oxford Bioscience Partners, Access Ventures, Garrett Capital and Stanford University.

The company has raised $55 million previously, closing its first round of funding late in 2001.

The company plans to use its recent funding to bring its nanotechnology for semiconductor substrates to market, rather than other avenues it is pursuing. Toprani expects to build the company’s sales overseas and is already bringing in a small amount of revenue to date.

ZettaCore's technologies are aimed at target markets where there is potential for significant performance improvement, reduced cost and reduced power demand,including in portable devices such as laptops, PDAs, cell phones and cameras.   

ZettaCore is ready to ramp up production of its nano treatment technology for substrates, based on customer demand, Toprani said, with potential customers in Japan and Taiwan.

Its prospective customers in the electronics industry are just starting to return to projects they put on hold because of the economic slowdown, Toprani said (see Cleantech investment drops but stimulus funds soar in 1Q09).

Panasonic, which is involved in batteries as well as substrates, is a potential user of all of ZettaCore’s technologies, Toprani said. Panasonic acquired Sanyo in Japan last year primarily for its solar and battery divisions (see Nine clean technology predictions for 2009).

“The investment lets them get a first-hand view of the development,” he said.

ZettaCore, launched 8 years ago, has 31 employees. It also has offices in Los Altos, Calif. Toprani said he expects the company to grow to about 40 people in the next year.

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