NextCAT is starting to really round up the seed capital, landing another six figures worth of funding last week.
The TechTown-based start-up received a $150,000 grant from the National Science Foundation, which also came with another $25,000 in matching grants form
Michigan's Emerging Technologies Fund for a total of $175,000. That's on top of the about
$100,000 the bio-diesel firm has received in microloans earlier this summer, but the National Science Foundation grant serves more of a purpose than just providing cold, hard cash.
"The nice thing about this grant is it brings what we call in the venture business, validation," says Chuck Salley, president and CEO of
NextCAT, explaining how his firm plans to raise $500,000 in seed capital this summer. "It's peer reviewed. That helps us convince people to invest."
NextCAT is commercializing technology developed at Wayne State University that allows bio-diesel producers to use less-expensive raw materials for production, simplifying the process. It's commercializing the first of these catalysts now, however, more catalysts are still being developed. The National Science Foundation grant will help pay for that research.
NextCAT employs six people and expects to hire two more because of this grant. More hires are expected to take place when more seed funding has been landed. That could happen sooner rather than later.
"Stay tuned," Salley says. "We should have more good news by the end of the summer."
Source: Chuck Salley, president and CEO of NextCAT
Writer: Jon Zemke
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