Monday, February 5, 2007

Alight with $15.6M, Boston Power launches

By Efrain Viscarolasaga

A Westborough maker of lithium-ion batteries meant to charge faster and safer than conventional ones has launched its first laptop battery.

Boston-Power Inc. also announced its first customer and new funding at last week's DEMO Conference in California.

Officials said the $15.6 million second financing round was led by California's Granite Global Ventures, a fund sponsored by local venture firm Venrock Associates, in conjunction with TIF Ventures of Singapore, and Minnesota-based Piper Jaffray. While Granite Global focuses on expansion-stage companies, it is also aimed at companies looking to break ground in Asia.

The round brings the company's total to $23.6 million and included previous investors Venrock Associates and Gabriel Venture Partners.

Boston-Power unveiled its new battery -- called Sonata, and aimed at the laptop computer market -- in conjunction with its new customer, Hewlett Packard Co.

Founder and CEO Christina Lampe-Önnerud said the consumer technology giant is supportive of Boston-Power and has been testing its products for 18 months. She would not reveal the extent of the relationship with HP in terms of revenue or product to be delivered.

While Boston-Power's set of announcements throws the company into a competitive market dominated by large players such as Sony Corp., Sanyo Electric Co. Ltd. and Fujitsu Ltd., the company's message hits on a topic that has only recently been brought to the forefront of the industry -- safety.

"The battery is designed to last longer and charge more quickly, but we also wanted to make sure safety and performance were both integrated equally," said Lampe-Önnerud.

The safety of laptop batteries entered the public eye last year as several reported battery fires caused Sony and its laptop manufacturing customers to recall millions of units. While Sonata's unique chemistry and design make it a safer battery, that idea wasn't always the main goal.

"When we first spoke with them (in 2005) and listened to their presentation, the slide about safety was at the back of the deck," said Michael Feinstein, a former general partner at Venrock who recently left to become an independent investor but remains on the Boston-Power board.