The company has closed the initial phase of its Series D round of funding for $11 million in equity capital from existing investors Nth Power, Craton Equity Partners and @Ventures, and a new investor, Gentry Venture Partners. Propel Fuels has also secured an additional $10 million in debt financing.
Propel's mission is to create a network of fueling stations offering drivers the cleanest, most sustainable, domestically produced fuels on the market today. Along with clean fuel, the company is focused on offering consumers a satisfying station experience; to do that, Propel offers services including a CarbonOffset program, improvements in vehicle fuel economy, finding rideshare opportunities, tuning bicycles and recycling on the go.
The company is seeing fast growth, being named the 17th fastest growing energy company in Inc. Magazine's ranking of Fastest Growing Private Companies, the 8th Fastest Growing Private Company in Silicon Valley by the Silicon Valley/San Jose Business Journal and the 14th Fastest Growing Private Company in the Bay Area by the San Francisco Business Times.
Along with receiving funding from California, Propel has lobbied in Washington for favorable implementation of the Renewable Fuel Standard. The political climate for biofuels is difficult to work through, with the food versus fuel debate and diminishing support from politicians. Propel Fuels is supporting advanced biofuels like algae-based diesel, but for now, corn ethanol makes up most of the biofuel used in E85 and E10 (and, slowly, in E15) blends found in gas stations across the country. Corn ethanol has its share of critics, but for those looking for E85 and biodiesel, Propel is working hard at bringing these fuels to the public.
Funding will fuel growth plans for more than 200 stations
REDWOOD CITY, Calif. (December 11, 2012) – Propel Fuels (www.propelfuels.com), a leading retailer of alternative fuels and clean mobility solutions, has closed on the initial phase of its Series D round of funding with $11 million in equity capital from existing investors Nth Power, Craton Equity Partners, and @Ventures as well as a new investor, Gentry Venture Partners. In addition, the company has secured $10 million in debt financing from CapX Partners. With the new funding, Propel will be able to accelerate the build out of its network of stations that offer drivers the cleanest, most sustainable, domestically produced fuels on the market today.
Propel operates a growing network of stations that provide renewable fuels (Flex Fuel E85, biodiesel blends) alongside the conventional gasoline that most drivers use today. Offering a better station experience that reaches beyond fuel, Propel enables drivers to offset carbon from their fuel purchases, improve their vehicle's fuel economy, find rideshare opportunities, tune bicycles, and recycle on the go. Propel is the only fueling company in the country to bring drivers the opportunity to offset their emissions at the pump through the company's unique CarbonOffset program.
This year, Propel was named to Inc. Magazine's list of the Fastest Growing Private Companies (the 17th fastest growing energy company); the 8th Fastest Growing Private Company in Silicon Valley by the Silicon Valley/San Jose Business Journal; and the 14th Fastest Growing Private Company in the Bay Area by the San Francisco Business Times.
"The continuing support of our existing investors, the new investment from Gentry, and the access to additional debt capital from CapX is a strong endorsement for our vision, our accomplishments, and team," said Matt Horton, CEO of Propel. "This new funding, combined with grant funding from the State of California, will enable us to accelerate the build out of our alternative fuel stations across state, offering consumers true choice and a better experience at the pump."
As part of the investment by Gentry, Thomas B. Raterman, a Partner, has joined Propel's Board of Directors. Raterman has more than 30 years of corporate finance, investment banking, and executive management with rapidly growing entrepreneurial companies.
"We're witnessing a revolution in transportation, whether it's innovative new enzymes to create clean fuels, or whole new drivetrains and power systems in the vehicles themselves," said Raterman. "Propel is creating a position as a trusted source of the most advanced fuels on the market today – no matter what type of vehicle you drive. We're excited to help them succeed."
Propel currently operates stations throughout California and Washington State with more than 200 stations planned for new and existing markets over the next two years. The company's network of stations will include a mix of their traditional Clean Fuel Points (renewable fueling stations co-located with traditional fuel stations) and the new Clean Mobility Centers. More information on Propel Fuels' current and future station locations can be found at www.propelfuels.com.
Headquartered in Redwood City, California, Propel Fuels builds, owns and operates a network of green-built filling stations providing convenient access to American, low carbon fuels and clean mobility solutions. The company offers consumers and fleets new fuel choices that make progress towards reducing carbon emissions, creating jobs, and lowering America's dependence on foreign oil. Propel has also developed CleanDrive®, the nation's first integrated carbon emission reduction tracking platform. Propel operates a growing network of locations providing cleaner mobility options in California and Washington State. More information is available at www.propelfuels.com and by following Propel on Twitter at: @PropelFuels.