The company’s earlier backers Adams Capital Management, BEV Capital and 9 individual angels provided the tranche money. To date, Additech has raised about $35 million.
The chairman of Additech, Ralph Koehrer, explained in an e-mail that his company will use this money to “grow the number of fuel centers [that have] our service,” and launch a new, “drive clean across America” marketing campaign short term.
Additech’s systems include interactive merchandising software, and dispensers of engine cleaning fuel additives, as well as displays that play commercials while drivers fill up. These are installed at gas stations in 16 states, from Texas to Florida and up to the Carolinas.
The company is eyeing new business in California and Arizona.
With its technical capabilities and reach, Koehrer confirmed, Additech could help gas stations distribute biofuels (or other renewable liquid fuels) in the future, though the company hasn’t committed to do so yet.
Adams Capital Management general partner in Austin Martin Neath says for now, Additech is “Mak[ing] it incredibly easy for people to make their cars and trucks run cleaner and get better gas mileage. You pick your grade of gas at the pump and you’re asked ‘Do you want to put some additive in…? Yes? Well, you don’t have to get dirty or anything.’ Do this once every three months or so and get better mileage. It’s good for the environment, and your pocketbook.”
Gas stations (or “fuel centers” in industry parlance) get a share of Additech’s revenue for allowing its systems to be installed and maintained at their stations.
Additech makes about 10% of its revenue from its media business, and 90% from its merchandising systems, and sales of its custom-blended fuel additives at the pump. Its fuel additives are made by Afton Chemical and include two detergent cleaners and a friction modifier.
“Adams Capital Management, Inc. (ACM) is a national venture capital firm specializing in early-stage applied technology investments. Established in 1994, ACM is a lead Series A investor and currently manages $810 million. Our general partners have extensive domain and operations expertise in the following industries: Information Technology Networking Infrastructure Semiconductor ACM’s well-defined, markets-first, investment strategy is driven by the identification and exploitation of market discontinuities. This strategy recognizes emerging growth companies with value propositions driven by economics and product roadmaps that have the...
“BEV Capital is a specialized venture capital fund focused on consumer-oriented businesses. The core of our business is investing in consumer companies. This includes retailers, Internet businesses, consumer products, consumer services, media, and restaurants. We also invest in supporting companies for consumer companies such as marketing software and services, Internet technologies, retail IT, information services, and analytics.”