May 28–Denver-based Altira Group LLC raised $64 million to fund young energy technology companies.
It’s the largest amount ever raised by Altira, a venture-capital firm that in three previous funds has invested a total of about $41 million in startup and early-stage companies.
Altira plans to invest the money in firms with promising technologies used in the oil and gas, electrical power and renewable energy industries.
“Our entire premise is that energy is the largest industry on the planet — a $3 trillion industry,” said Dirk McDermott, Altira founder and managing partner.
The firm will target North American energy-related companies for investments of $1 million to $3 million each.
Altira investors include wealthy individuals, foundations, universities and corporations.
Previous recipients of Altira’s investments have included Canyon Offshore, a maker of remote-operated submarines used for construction and maintenance of undersea pipelines and cables, and TransZap a Denver firm that develops business software for oil and gas companies.
Altira has funded other Colorado firms, including Pixxures, WhiteStar and RC Squared, which is now owned by Veritas. Natural gas prices are at historic highs, which makes the sector attractive for investment, McDermott said. But he said energy technology firms also can show promise in periods of low commodity prices.
“The only way operators can drive their costs down is with technology,” McDermott said.
Venture capital investments in Colorado increased by 31 percent in the first quarter over the fourth quarter of last year, according to the MoneyTree survey by PricewaterhouseCoopers, the National Venture Capital Association and Venture Economics. Altira’s new $64 million fund places it on the smaller side of American venture-capital funds, which averaged $141 million last year.
Energy technology is a good fit for venture-capital firms seeking startup companies, said John Taylor, the president of research for the National Venture Capital Association in Arlington, Va.
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