Rustic Canyon in the News
Serious Materials Building Up Green Construction Supply Co With $60M
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DowJones
News Date:
09/23/2009
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9/23/2009 – Serious Materials Inc. raised $60 million in a Series C round to further build up its green construction supply business, which it says is prospering while traditional construction-supply companies continue to suffer.
The Sunnyvale, Calif.-based company actually bought two manufacturing facilities from bankrupt window makers and renovated them to create energy-efficient window plants. It then hired back a total of 70 laid-off workers between these plants in Chicago and Pennsylvania.
"We're growing really, really fast right now," said Sandra Vaughan, Serious Materials chief marketing officer, in an interview with Clean Technology Insight. "A lot of other folks in the building materials space are struggling with challenges, we feel fortunate we're on an aggressive track."
She said she couldn't disclose specific sales figures, but that the company has grown from 125 employees last year to 250 now. The company has five plants in total, all in the U.S.
Vaughan said that the company would use the $60 million to expand the company's market share and develop new products.
The round was led by Mesirow Financial, a diversified financial services firm in Chicago. Additional new investors included Enertech Capital, Cheyenne Capital Corp., and Saints Capital. Previous investors participating in the round included New Enterprise Associates, Foundation Capital, Rustic Canyon Partners, Navitas Capital and Staenberg Ventures.
Serious Materials focuses largely on highly energy efficient windows, but also makes environmentally friendly drywall and other products.
Vaughan said that government stimulus money focuses a lot of attention on energy efficiency and is helping create demand for products such as those made by Serious Materials. But even after that pile of money runs dry in a few years, she said there is a business case to be made for her company's products as payback times on the company's energy-efficiency products can be as little as two years.
"We are selling the fact that we are saving people money," she said.
New Enterprise Associates and Foundation Capital led a $50 million Series B investment in the company in late 2007, with participation from Rustic Canyon Partners, Navitas Capital, and Staenberg. Rustic Canyon raised $5 million for Serious Materials in an A Round in August 2006. Angel investors backed the company before its Series A round.
The Sunnyvale, Calif.-based company actually bought two manufacturing facilities from bankrupt window makers and renovated them to create energy-efficient window plants. It then hired back a total of 70 laid-off workers between these plants in Chicago and Pennsylvania.
"We're growing really, really fast right now," said Sandra Vaughan, Serious Materials chief marketing officer, in an interview with Clean Technology Insight. "A lot of other folks in the building materials space are struggling with challenges, we feel fortunate we're on an aggressive track."
She said she couldn't disclose specific sales figures, but that the company has grown from 125 employees last year to 250 now. The company has five plants in total, all in the U.S.
Vaughan said that the company would use the $60 million to expand the company's market share and develop new products.
The round was led by Mesirow Financial, a diversified financial services firm in Chicago. Additional new investors included Enertech Capital, Cheyenne Capital Corp., and Saints Capital. Previous investors participating in the round included New Enterprise Associates, Foundation Capital, Rustic Canyon Partners, Navitas Capital and Staenberg Ventures.
Serious Materials focuses largely on highly energy efficient windows, but also makes environmentally friendly drywall and other products.
Vaughan said that government stimulus money focuses a lot of attention on energy efficiency and is helping create demand for products such as those made by Serious Materials. But even after that pile of money runs dry in a few years, she said there is a business case to be made for her company's products as payback times on the company's energy-efficiency products can be as little as two years.
"We are selling the fact that we are saving people money," she said.
New Enterprise Associates and Foundation Capital led a $50 million Series B investment in the company in late 2007, with participation from Rustic Canyon Partners, Navitas Capital, and Staenberg. Rustic Canyon raised $5 million for Serious Materials in an A Round in August 2006. Angel investors backed the company before its Series A round.