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.