Electric Motor Startup Raises $225 Million, Buys Three Companies
(Bloomberg) -- California-based Turntide Technologies, which makes electric motors, raised $225 million and acquired three companies to speed up its route to market.
The latest cash injection, which included investments from the Canadian Pension Plan Investment Board, Bill Gates-led Breakthrough Energy Ventures, and the venture arm of property giant Jones Lang LaSalle Inc, comes just months after Turntide closed an $80 million round. Earlier investors included Footprint Coalition Ventures, led by actor Robert Downey Jr.
The money helped Turntide acquire AVID Technology Ltd., which designs and makes components of electric powertrains. It also bought the transport division of Hyperdrive Innovation Ltd., which makes high-performance battery systems, and BorgWarner Gateshead Ltd., which designs power electronics that help electric motors.
Motors use magnets to convert electricity into motion. As much as half of the world’s electricity might be consumed by the devices, which are found in everything from computers to cranes. Turntide says its technology, which relies on inexpensive magnets, can produce the same amount of work but with 30% less electricity.
So far Turntide has used the technology to build more efficient ventilation systems in large buildings. It’s replaced 5,000 motors and aims to do 50,000 this year. The acquisitions will help the company enter new markets, such as heavy-duty and high-performance electric vehicles, said Chief Executive Officer Ryan Morris. The eventual goal is to deploy the technology in electric cars, but that’s at least three years away.
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