Tuesday, June 3, 2008

American Biomass heats up with $4M in first funding round

By Mass High Tech Staff

American Biomass Corp., a distributor and retailer of wood pellets and biomass fuels for residential heating based in Manchester, N.H., has closed $4 million in Series A funding. The new financing round was led by Boston-based .406 Ventures.

American Biomass was founded in 2006 by MIT graduate Jon Strimling. The company has built a network of more than 25 wood pellets manufacturers and 50 carriers to enable the doorstep delivery of wood pellets to customers throughout the U.S., and officials claim the company is delivering tens of thousands of tons of pellets sold through a pair of e-commerce sites.

Focused on early stage information technology ventures, the investment is somewhat of a departure for .406 Ventures, which has previously funded companies such as Newton IT security software maker ChosenSecurity Inc. and Cambridge radio frequency identification (RFID) equipment maker ThingMagic Inc.