Friday, November 7, 2008

Xtalic moves to market with $10M funding

By Efrain Viscarolasaga

Armed with $10 million in new funding, Marlborough-based coatings technology developer Xtalic Corp. is pushing full steam ahead on the commercialization of its nanotechnology-based metal-plating process.

The new funding, which was received earlier this week and is almost double the infusion the company received in its first round in 2005, will be used to help the company move its process from research into the commercialization phase, and expand the pilot tests it has already established, according to executives.

While officials would not name the potential customers currently testing Xtalic’s chrome-plating replacement, CEO Tom Clay said the company has narrowed its market direction to three basic areas — functional industrial applications, decorative finish coatings and electronics fabrication.

Xtalic’s technology — which includes the ability to “grow” metal crystals on a nanoscale, as well as a proprietary software platform that controls the growth for each application — offers an alternative to traditional chroming, a process that usually includes harmful chemicals, such as hexavalent chrome. According to officials, the technology’s value proposition is not just environmental, but offers a considerable performance enhancement. Metal machine parts treated through the process show six to seven times the wear resistance than traditional chroming, according to Clay.

“If all we offered was a move from the environmental issues of chrome, that would be attractive to some, but by adding performance advantages, our customers can go back to the end users with a much more market-driven proposition,” said Clay.

The 18-person company, which was spun out of MIT based on the research of chief scientist Christopher Schuh and CTO Alan Lund in 2005, expects to reach what Clay describes as “pilot commercialization” in 2009, though full commercial penetration may take a little longer. Executives also hope to add eight to 10 people over the next 12 months.

Xtalic has raised a total of $15.7 million since its inception. Investors include Matrix Partners and North Bridge Venture Partners, both of Waltham.