Wednesday, June 25, 2008

Aspen Aerogels pulls in $37M in second VC round

By Mass High Tech Staff

Advanced materials developer Aspen Aerogels Inc. of Northborough has closed a $37 million round of venture capital from a consortium of investors.

Leading the round was new investor Arcapita Ventures of Atlanta. The firm was joined by existing investors Lehman Brothers Venture Partners and Reservoir Capital Group, both based in New York, and Rockport Capital Partners of Boston.

As part of the deal, Ramsay Battin, a director at Arcapita Ventures, will join the Aspen Aerogels board of directors.

Founded in 2001, Aspen Aerogels makes insulation products that are lightweight and flexible for use by a number of industries, including oil and gas processing, liquid natural gas (LNG) shipping and storage, building and construction, outdoor apparel and aerospace. Its “nanoporous” aerogel blanket insulation is up to eight times more effective than incumbent materials, according to the company.

Two months ago, Aspen Aerogels completed the construction of a $30 million manufacturing facility in Rhode Island to keep up with demand for its product and bring its production capabilities up to a possible $200 million in yearly revenue.

Aspen Aerogels’ customers include Exxon Mobil, Technip, Aerogel Korea, Samsung, British Gas, Salomon, Praxair, Bredero Shaw, Boeing and Saudi Aramco.