ViZn Energy Systems Inc., the Montana-based producer of battery-storage systems, is seeking as much as $25 million during the next six months to expand manufacturing.
ViZn expects to increase production of its zinc-iron flow batteries, which store and send power to a grid, late in the fourth quarter or early in the first, Chief Executive Officer Ron Van Dell said in a phone interview today. He declined to specify the amount of the increase or name potential customers.
A $25 million investment would be enough to get the five-year-old closely held company “fully funded, with some headroom,” said Van Dell, who previously worked for Dell Inc. and General Electric Co. “We’ll be on our way to just pure execution until we’re cash-flow positive.”
ViZn’s battery systems, which are attached to microgrids and designed to last two to four hours, will be manufactured in the U.S. and Europe. Storing energy allows for greater flexibility in using electricity generated by renewable sources including wind and solar.
The company previously raised about $19 million in equity, mostly from individuals, Van Dell said.
“As we’re stepping up into production, and a sales ramp, we needed to have a different level of fundraising,” he said. “The time for debt, probably more venture debt, is when you’ve got real production and a sales ramp, a few quarters’ worth behind you. For us, that’s probably a year from now.”