Printer Friendly Article: U.S. Army lines up behind PowerGenix: "U.S. Army lines up behind PowerGenix
by Paul Bonanos Posted 03:22 EST, 11, Nov 2004

The U.S. Army's venture capital arm has led a $10 million second-round funding for nickel-zinc battery developer PowerGenix Corp. of San Diego.
OnPoint Technologies, the military division's Maitland, Fla.-based venture fund, joined New York's Braemar Energy Ventures as new investors in the round. Also participating were the three firms that backed PowerGenix in its $3.75 million first round last year: Advent International Corp. of Boston, Granite Ventures LLC of San Francisco and Technology Partners of Palo Alto, Calif.
With the funding, PowerGenix became at least the fourth battery maker to receive money from OnPoint in 2004, though it is the first among them to specialize in nickel-zinc technologies. Batteries and fuel cells are among the primary investment focuses of the Army's VC firm.
PowerGenix chief executive Dan Squiller said the process of finding new investors was 'very selective,' though the company began with a substantial list of about 50 potential backers and received multiple term sheets. 'We were looking for intangibles, not just money,' he said.
'OnPoint and Braemar were always on our short list,' Squiller explained. He said OnPoint's investment brings its knowledge of how the military buying cycle works and that Braemar adds specific expertise in the energy storage field.
PowerGenix was technically founded in 2000, though the company's current incarnation began in 2003 when the first round was completed and intellectual property assets of several prior companies were rolled up. "