Contact Information: Contact: .406 Ventures 470 Atlantic Avenue 12th Floor Boston, MA 02210 P: 617.406.3300 F: 617.406.3301 www.406ventures.com
American Biomass Corporation Secures $4 Million in Series A Funding From .406 Ventures
| Source: .406 Ventures
MANCHESTER, NH--(Marketwire - June 2, 2008) - American Biomass Corporation (ABC), the
leading national distributor and online retailer of wood pellets and
biomass fuels for residential heating, today announced it has closed $4
million in Series A funding, led by .406 Ventures.
ABC was founded in 2006 by Jon Strimling, an MIT-educated operations expert
and veteran of the wood pellet fuel industry. Mr. Strimling saw an
opportunity to bring logistics best practices to bear on the fragmented
supply chain to offer low-cost home-delivery of premium, branded wood
pellets. ABC's national scope and technology-enabled platform enables them
to manage distribution networks across the US. Their network of over 25
wood pellets manufactures and 50 carriers allow them to provide consumers
with low-cost premium pellets, delivered right to their doorstep.
"Solid biomass heating fuel is a domestically produced, 'here and now'
renewable energy source that not only saves consumers money, but eliminates
more than five million tons of incremental CO2 emissions every year," said
Liam Donohue, Managing Director of .406 Ventures. "Even before the recent
rise in oil and gas prices, biomass heating has been experiencing
tremendous growth in the US, and if Europe is any indication, we have a
long way to go. .406 Ventures is excited to be helping American Biomass
Corporation to build the infrastructure needed to support this growth."
Solid biomass fuels, predominately wood pellets, are a domestically
produced, renewable, carbon-neutral energy source that can heat homes for
less than half the cost of traditional fossil fuels. Building on the
increasing popularity of wood pellets, ABC is delivering tens of thousands
of tons of pellets through its two e-commerce sites, www.PelletSales.com, a
consumer retail site, and www.AmericanBiomass.net, a wholesale commerce
site. Their patent pending software optimizes the selection, quoting and
distribution of pellets enabling consumers to instantly get quotes and buy
directly from their website. The company is well positioned to dominate
the bulk distribution of biomass heating fuels.
Mr. Strimling commented, ".406 Ventures immediately understood the promise
of biomass heating fuels and was able to provide the right amount of
capital with enough reserves to continue to fund additional infrastructure
as we aggressively move into the bulk market," said Mr. Strimling. "More
importantly, I teamed with .406 because of their operational orientation,
extensive network and entrepreneurial approach, which has already proven
very helpful in accelerating our growth. We are very excited about this
partnership and the prospects for creating an industry leading company."
About .406 Ventures
.406 Ventures (".406") is a venture capital firm focused on investing in
market-innovative growth technology and services companies being built by
the finest entrepreneurs. .406 focuses primarily on early stage, IT and
services companies in sectors where the partners have unique domain
expertise, a successful track record, and established networks -- IT
Security; Technology-enabled Business Services; Internet & Mobile;
Next-Generation Enabling Technologies. More information can be found at
www.406ventures.com.
About American Biomass Corporation
American Biomass Corporation provides convenient access to pellet fuels
using sophisticated logistics technology and a nationwide network of fuel
manufacturers, appliance retailers and distribution partners. American
Biomass Corporation was founded by logistics experts from the wood pellet
industry, and is venture backed by .406 Ventures. For more information
about American Biomass Corporation, please visit www.pelletsales.com.
©2008 American Biomass Corporation. All rights reserved.