Israeli efficient lighting company Metrolight has secured one of the largest venture backed investments to date in the country’s fledgling cleantech sector. The $9 million third round of financing was led Britain’s Virgin Fuels and Gemini Israel Funds.
The investment in the Netanya-based company was the first in an Israeli company by Virgin Fuels which was formed by Sir Richard Branson to invest in companies in the renewable energy and resource efficiency sectors. Israel Cleantech Ventures and Altshuler Shaham, a Tel Aviv-based investment bank, also participated. The latest round brought to $23 million the amount raised by the company.
“Inefficient lighting is one of the largest sources of energy waste and Metrolight can help reduce greenhouse gas emissions and substantially improve energy efficiency around the world,” said Sir Branson, founder of Virgin Fuels. He established the $400 million fund in 2006.
Metrolight was founded in 1996 and is the world leader in smart electronic ballasts used to ignite and operate High Intensity Discharge (HID) lamps, the main source of lighting outdoors as well as in commercial, industrial and municipal settings. The company’s patented electronic ballast is used for replacing existing electromagnetic ones. “They have a significant head start over the competition,” noted Shai Weiss, managing partner at Virgin Fuels.
The U.S. Department of Energy estimates that HID applications account for 5 to 6 percent of the world’s electricity production. However there have been only limited advances over the years in improving the efficiency of lighting.
“Our technology leads to a 40 to 60 percent savings in electricity costs,” said Igal Zamir, CEO of Metrolight. He added that on a global basis this could reduce electricity demand by 2 to 3 percent or the equivalent amount of carbon dioxide produced annually by 65 million vehicles.
The company has seen a sharp growth in sales in the past two years since it started focusing on the outdoor market. The privately held company would not provide sales figures but said revenues were expected to nearly triple this year.
Metrolight has supplied New York City with its ballasts for municipal lighting and is also involved in several major projects in major retail chains in the U.S. “The latest investment will dramatically expand our reach and efforts to make the technology the de facto platform for electronic HID lighting worldwide,” said Randy Reid, Metrolight’s executive vice president and sales manager.
The company said it is currently cooperating with most of the world’s largest and leading lighting manufacturers including Acuity Brands, Genlyte Group, Cooper Lighting and General Electric.