BASF Venture Capital, the corporate venturing unit of Germany-based chemical conglomerate BASF, has led a $21.5m investment in US-based insulation materials company Aspen Aerogels as a new investor.
BASF already uses Aspen’s nanoporous aerogel insulation products at its Antwerp, Netherlands-based site as its products are up to five times more effective than other insulation materials.
Bruce Christensen, vice president of global technology and innovation management at BASF Construction Chemicals, said: "High-performance insulation materials are the key technology for energy-efficient retrofitting of buildings.
"These new materials are space-saving and give home owners more options in designing their house to suit their own tastes."
Oliver Guthmann, investment manager at BASF Venture Capital, added: "We see an additional very large market potential and further opportunities for profitable growth in the construction industry. Actually it is series B round, which includes a re-cap in one of the last rounds. The financial structure of Aspen Aerogels has been cleaned up which was of help for additional investors."
The other members of the latest investment consortium included venture capital (VC) firms RockPort Capital, Tenaya Capital (formerly known as Lehman Brothers Venture Partners), Reservoir Capital Group, Arcapita Ventures and Argonaut Private Equity.
These VCs had previously invested $37m in Aspen’s extended series B round in June 2008, although an earlier $50m round in May 2005 had been called its series D and included Taijin, a subsidiary of industrial group Tae Kwang.
Taijin and Rockport had invested $8m in June 2002, and the company had raised $4m in May 2001 at its spin off from Aspen Systems. Given Rockport’s lengthy investment as most VC funds last 10 years, a flotation or other exit could come as soon as next year, market experts said.