Firefly Energy Inc. (Peoria, IL), a company formed by Caterpillar Inc. to create the next generation of lead-acid battery technology, announced that it has received $4 million in Series A financing. The new funding comes just one year after spinning the technology out of Caterpillar through the not-for-profit business incubator, Peoria NEXT.
New investors in this funding round were KB Partners and United Defense LP. Caterpillar and the Illinois Finance Authority were original investors in the company's seed round, and participated again in the new Series A round. Caterpillar leaders say the ability to secure Series A financing reinforces early confidence in the potential of the battery innovation.
"Firefly Energy was our first spin-out project through Peoria NEXT, and it is exceeding our expectations. The company is developing a quality product from an innovative idea that will address an unmet need in the energy storage industry. The timing is great for Firefly," said Caterpillar Group President Gerry Shaheen.
Firefly also announced that it has additionally secured $500,000 in debt financing, led by the State of Illinois' Department of Commerce and Economic Opportunity, with participation from Peoria County Revolving Loan Fund and Peoria Citizen's Committee for Economic Opportunity Inc. Funds from both equity and debt financing will be used to advance product development of Firefly's lead-acid technology. Specifically, Firefly plans to use the funds toward increased hiring in product development, the acquisition of sophisticated test machines, expansion of lab facilities, and procurement of prototype manufacturing equipment.
