Fusion Coolant Systems, the Canton, MI-based industrial tech startup spun out of the University of Michigan, has raised an $8 million Series C funding round.
The investment was led by Material Impact, a Boston venture capital firm, and Michigan Capital Advisors, with participation from existing investors, including U-M’s Michigan Investment in New Technology Startups, Amherst Fund, and Invest Michigan.
“This is growth capital,” says Steve Skerlos, Fusion Coolant founder and CEO. The company plans to use its new funding to expand operations, hire sales and engineering personnel “That maintains our insurgent culture,” and add equipment.
Most of Fusion Coolant’s customers are in large manufacturing sectors such as biomedical, aerospace, and automotive.
Skerlos says Fusion Coolant currently has about four dozen of its systems “Running in the field.” Although he declined to name the customers due to confidentiality agreements, he says “Three of the top four biomedical companies in the world have adopted our technology, and one of the two largest aircraft manufacturers, and we did this even though every company initially said they don’t buy equipment from startups.”
“Manufacturing is more closely tied to innovation and technology. As an educator, I’m hearing more students talking about it.” Plus, with technological advances making the manufacturing process more efficient, it’s easier to maintain and grow U.S. operations, he says.
As for Fusion Coolant, Skerlos says he expects the company to double its revenues from last year.