January 8, 2021. Cottonwood Technology Fund is pleased to announce that it has participated in an equity investment of up to $157 million in BayoTech. BayoTech is a global leader in on-site hydrogen production. Cottonwood led four years ago in the first round of BayoTech, co-led the second round in 2018. Fund III has now participated in supporting the third round in BayoTech.
On-site hydrogen generators
BayoTech is an energy solutions company committed to addressing the global need for consistent, cost-effective, low-carbon supply of hydrogen. Hydrogen possesses many attributes that will drive long‐term demand as a fuel source, including its role in global decarbonization efforts. Today, most hydrogen is produced at large, centralized facilities before being delivered to end users. BayoTech, through its on-site hydrogen generators and “Gas-as-a-Service” offering, reduces or eliminates transportation and storage costs, which results in less energy wasted and a lower carbon footprint than traditional hydrogen production technology and electrolyzer-based systems.
The company’s modular, scalable, and rapidly deployable hydrogen production systems require lower upfront capital commitments, streamlined siting and installation and, when paired with renewable natural gas (“RNG”), offer the most cost-effective green hydrogen available today. BayoTech serves a diverse set of end users, including traditional consumers in the industrial gas and chemicals industries, as well as those using hydrogen to power the fast-growing fuel cell segment.
Up to $157 million Funding Round
The equity commitment of up to $157 million comes from Newlight Partners LP, a growth equity investor, with participation from existing investors Cottonwood Technology Fund and Sun Mountain Capital as well as additional new investor Fortistar. The proceeds will be used to accelerate BayoTech’s strategic growth through product development, project development and infrastructure expansion. With the new fund structure Cottonwood has the ability to invest, under LP approval, in winners of the previous funds.
About Cottonwood Technology Fund
Cottonwood Technology Fund is a seed and early-stage technology commercialization fund with offices in Santa Fe NM, United States, and Enschede, the Netherlands. Cottonwood makes impact investments in IP-driven Key Enabling Technologies (Deeptech & High-Tech). The startups that Cottonwood invests in originate throughout the Southwest region of the US and in Northern Europe. These regions include numerous national laboratories, over a dozen major research universities and several major research medical centers. Current and prior investments include Skorpios Technologies, FibeRio (acquired by Clarcor), mPower Technologies, Infinitum Electric, Eurekite, Sarcos Robotics, BayoTech, SoundEnergy, Respira Therapeutics, OPNT and Exagen (Nasdaq XGN).
For more information please visit www.cottonwood.vc