August 23, 2016
Fusion Coolant Systems, a University of Michigan spinout based in Canton, announced Tuesday it had raised $1.25 million in its first close of Series B funding.
The round included contributions by the direct venture program of U-M's Investment Office called MINTS, or Michigan Investment in New Technology Startups, and Amherst Fund LLC. Additional investors are expected to join the financing over the next six months.
The funds will be used for Fusion's laboratory expansion in Canton and to grow the engineering and sales team.
Fusion Coolant was founded in 2011 to deliver the next-generation of coolant and lubricant technology to advanced manufacturing operations through the use of supercritical carbon dioxide.
"MINTS is enthusiastic to lead Series B given Fusion's growing market acceptance in the biomedical sector and the inroads it continues to make within the automotive and aerospace sectors," said Rafael Castilla, director of investment risk management at U-M. "Fusion has proven its technology and is transitioning its focus to business execution and scaling."
Inventor Steve Skerlos, interim CEO of Fusion Coolant Systems and the Arthur F. Thurnau Professor of Mechanical Engineering, said, "Fusion is disrupting the traditional view of coolants and lubricants used in manufacturing.
"Instead of being a toxic 'necessary evil' as is the case with traditional fluids, Fusion's supercritical carbon dioxide metalworking fluids can increase production rates, increase tool life, protect worker health, and eliminate water pollution, all while reducing a factory's carbon footprint."
Matt Turner, president and CEO of Amherst Fund and an experienced manufacturing industry investor, said, "Fusion's Pure-Cut and Lube-Cut products offer a competitive advantage to the world's most demanding metalworking processes, and we are excited to be a part of this company."