Sep 1 2006
A leader in the development of silicon carbide (SiC) electronics materials and power semiconductors, SemiSouth Laboratories today announced that it has raised $5 million through a Series A1 venture capital financing agreement. Led by Southern Farm Bureau Life Insurance Company of Jackson, Miss., the financing will be funded in two stages over the next three months.
Mississippi Governor Haley Barbour made a special visit to SemiSouth's new state-of-the-art SiC manufacturing facility today to be on hand for this announcement that will positively affect so many Mississippi participants.
"SemiSouth is an exciting high-tech success story," said Governor Barbour. "It's also a case of Mississippi State University being an economic development engine not only for the Starkville area but also for the entire state. Companies like SemiSouth are why it was so important to pass the Momentum Mississippi legislation to realign our development incentives with the new realities of the economy that emphasize brain power over strong backs."
"Our universities are economic development gold mines and we are beginning to do a better job of mining them for high-skilled, higher-paying new jobs," Governor Barbour continued.
Participating in this new financing were Delta Capital Management (Memphis, TN) and Southern Appalachian Fund (Knoxville, TN). Both companies participated in the Series A financing SemiSouth secured last year - which closed in June 2005 and was led by Delta Capital. In addition to these two previous investors, new investors in this round of financing included several Mississippi-based institutions including: Starkville Technology Investments, LLC led by Frank Brumfield (a graduate of Mississippi State University); Mississippi Angel Fund of Jackson, MS; Gulf South Capital of Jackson, MS; and Schneider Electric Ventures of Paris, France.
"This new financing is a strong endorsement of SemiSouth's innovative silicon carbide semiconductor technology, its business plan, and its management," said Dr. Jeff Casady, president and CEO of SemiSouth. "This financing success also demonstrates the strength of Momentum Mississippi - the Governor's approach for drawing in investment capital for high-tech Mississippi businesses."
SiC is an emerging semiconductor technology known to have very significant advantages for energy efficient high-power applications. The key electrical properties of the technology is the ability to handle electrical power up to 10 times better, with higher efficiency, and at much higher temperatures than silicon based power electronic components. The true promise of SiC is its ability to make high-end power supplies more energy efficient, run cooler and be physically smaller in size. As an example, SiC power components are expected to increase the 'fuel' efficiency of hybrid electric vehicles and help make them more affordable for consumers.