EASTERN NEW YORK ANGELS, LLC. TO INVEST $150,000
IN ENER-G-ROTORS INC.
Funding represents Tech Valley’s newest investment firm’s first investment
Nov. 2011 – Eastern New York Angels, LLC, an Upstate, NY-based investment group that provides seed funding and mentorship to early-stage companies in New York’s Tech Valley, announced today a $150,000 investment in Ener-G-Rotors, Inc., a renewable energy company in Rotterdam, NY.
Following a thorough review and evaluation of dozens of business plans submitted by local start-ups, ENYA leadership identified Ener-G-Rotors as its first investment. The investment group, comprised of regional business leaders and accredited investors, performed a comprehensive due-diligence examination of Ener-G-Rotors to inform its decision to invest in the company, which is widely considered a pioneer in converting low-temperature waste heat to electricity.
Richard Frederick, a founding member of ENYA and proven serial entrepreneur, believes in Ener-G-Rotors and the process that awarded them funding. “ENYA is made up of business leaders and entrepreneurs who carefully review early-stage companies like Ener-G-Rotors,” he said. “Our members, who are investors, have a wide variety of business successes and life experiences that enable them to evaluate and provide guidance to early-stage companies. We’re looking forward to future investment opportunities as we near our $1MM goal.”
“I am pleased that Ener-G-Rotors represents the first company in ENYA’s portfolio of investments,” Michael Newell, Ener-G-Rotors CEO said. “Having an active, knowledgeable and organized seed investment group in Tech Valley encourages local early stage entrepreneurs, stimulates job growth in the area, and helps drive companies like ours forward. This investment will have a direct impact on our development efforts; it will provide for the addition of a state-of-the-art work-station crane system, and the funds will also enable us to fill a critical position to support our commercialization goals.”
In addition to the ENYA investment, Ener-G-Rotors has received more than $2.5 million in grants from the New York State Energy Research and Development Authority (NYSERDA). Those funds are supporting the company’s efforts to field test its GEN 4 unit in three factories in New York State. The GEN 4 is the company’s state-of-the-art device that economically generates electricity from low-temperature waste heat emitted during industrial processes. A large potential market exists for a device that can generate power from low-temperature waste heat sources. The U.S. Department of Energy estimates that 20 to 50 percent of industrial energy is lost as waste heat. And 60 percent of that waste heat is defined as low-temperature heat. New York has almost 4,000 potential sites that could make use of this product, representing an opportunity to generate 200 megawatts of electricity.
The Eastern New York Angels traces its roots to 2001 when four local entrepreneurs formed the Tech Valley Angel Network (TVAN). An affiliation of high net-worth individuals who met monthly to review potential investments in early stage companies in the Tech Valley, TVAN eventually collaborated with the Center for Economic Growth (CEG) to formalize and manage the organization. In August 2010, founding partners Richard Frederick and Joseph Richardson, coupled with the support of CEG, created the ENYA seed fund to enhance and expand the TVAN effort. CEG continues to play a vital role providing stewardship and administrative support.
Richardson, an operating director at DeltaPoint Capital Management, believes the organization delivers to both entrepreneurs and the region. “One of the most critical elements of all we provide entrepreneurs is mentorship. Funding is of course necessary, but guidance from those who have ‘been there done that’ is invaluable. Our investors come from all walks of life and can provide expertise in many defined areas.” Richardson also says he believes in the future of the region. “I would like to see the investments and mentorship we provide result in additional jobs and economic prosperity.”
Companies interested in ENYA (http://www.easternnyangels.com) assistance participate in a selection process in which they “pitch” their business models and products to investors. These presentations – combined with ENYA’s due-diligence reviews of the companies – ultimately determine funding decisions. The ENYA group estimates an average investment of $150,000 per company. In addition to the Ener-G-Rotors funding, ENYA is currently reviewing and evaluating a number of start-ups; the firm is also seeking investors to add to its list of angel members.
“We are in the process of identifying additional accredited investors who have the interest in and resources to invest in one or more units each in the amount of $25,000 to the fund,” Frederick said. “Equally important, these investors must share our commitment to provide support and mentorship to the region’s emerging entrepreneurs. Fundamentally, ENYA is all about opportunity – for our investors, our entrepreneurs and our region.”
Ener-G-Rotors (www.ener-g-rotors.com) is commercializing devices based on a near frictionless expander that converts low-temperature heat into electricity, opening up new markets in waste heat and changing the technology landscape for solar thermal and geothermal installations. Based in Rotterdam, NY, the company is a recognized leader in the conversion of low-temperature waste heat to electricity. The company has received awards at six clean-energy forums around the country in the last two years alone; recently, Ener-G-Rotors was named a “Top 10 Defense Energy Technology Solutions” company, chosen from a field of 220 applicants, by the U.S. Military, which describes itself as the nation’s largest consumer of fossil fuels. Earlier this month, the company was recognized at a special ceremony at the White House entitled “Make it in America: Champions of Change Roundtable,” a discussion sponsored by U.S. Congressman Paul Tonko designed to highlight local success stories, discover new opportunities for collaboration and to connect local leaders with resources and expertise to help create jobs.
About Eastern New York Angels:
ENYA’s primary goal is to provide seed funding and mentorship to early stage companies while creating jobs and stimulating entrepreneurial activity in the region while delivering a reasonable return on investment for its investors. for more information, contact Richard Frederick or Joseph Richardson at 518-690-0620 or visit http:// www.easternnyangels.com.