Case Studies
Valence Process Equipment
Background
With the financial and environmental cost of energy increasing each year, consumers and businesses are seeking to maximize energy efficiency and reduce the environmental impact associated with its consumption. Many countries have started to mandate a phase-out of incandescent lights, and require their replacement with florescent and/or LED lights. Also, many governments have started to push the development of cheaper, environmentally friendly solar energy production. The demand for LED lights and solar energy has in-turn fueled the demand for compound semiconductor equipment. After leaving one of the world’s leading manufacturers for compound semiconductor equipment, the founders of Valence Processing Equipment (“Valence”) incorporated their innovations into the reactor design of Valence’s MOCVD (“Metal Organic Chemical Vapor Deposition) equipment – a technology that will significantly reduce the underlying costs associated with manufacturing compound semiconductors.
Opportunity
Despite the recognition of their technology, and early innovation funding by Ben Franklin Technology Partners, Valence needed more private funding to complete the first prototype of its reactor and full MOCVD system. At the same time, the owners did not want to experience substantial equity dilution which can be typical for a large institutional venture capital round.
Outcome
Conexus Capital Advisors organized a Series A Round of Investment from a group of well-connected, private investors who were capable of providing sufficient financing to enable Valence to manufacture its first prototype MOCVD system. The partners of Conexus also supported Valence with board level guidance and helped in shaping its business strategy. Upon completion of its first prototype MOCVD system, Conexus orchestrated a follow-on Series B Round of Investment providing Valence with sufficient funds for characterization and validation of its production runs. Upon validation of its technology and MOCVD system performance, Conexus organized a Series C round to provide sufficient funds for Valence to build multiple production systems. The incremental, milestone oriented financing from private investors has helped the founders of Valence to expeditiously develop the prototype and production MOCVD system, and avoid significant dilution associated with a large institutional investment round.