600,000 EUR Financing Round for MAGNOTHERM
MAGNOTHERM recently announced the closing of a 600,000 EUR (~700,000 USD) financing round. The funding comes from the German federal government’s 2 billion EUR package of measures for startups, which is being handled through various VCs. In the case of MAGNOTHERM, the fund is handled by High-Tech Gründerfonds, to whom a close collaboration and partnership already exists.
Timur Sirman, Co-Founder and Co-CEO of MAGNOTHERM, states: “We are happy that after the 1.4 million EUR (~1.6 million USD) pre-seed fundings from the Germany Federal Ministry of Economic Affairs and Energy with EXIST Forschungstransfer as well as the other programs from ESA, EIT RawMaterials as well as Deutsche Bundesstiftung Umwelt we gained the trust to further develop this revolutionary cooling technology. For us, this round of funding is the confirmation of our path we have taken so far. It enables us to take the step out of the university and into our own premises, as well as to continue building our team.”
With the new capital, the existing functional lab prototype, that can already magnetically chill drinks, will be further developed. In addition, new machinery and equipment for speeding up the development process will be sourced in order to iterate more quickly and carry out projects with pilot partners. In addition, a number of existing ideas will be registered for extending the current patent portfolio.
MAGNOTHERM, a spin-off of Technical University of Darmstadt, uses the giant magnetocaloric effect of resource-efficient iron-based alloys in magnetic refrigeration. The technology makes it possible to build refrigeration and air conditioning systems that use up to 50% less electricity than gas-steam compressor systems, while using no climate-damaging refrigerants. The systems operate at very low working pressures, require less maintenance and are safer than alternative refrigerants.