UltraCell Insulation, a runner-up in the 43North business plan competition in 2016, has wrapped up a $5 million funding package that will clear the way for the company to open a factory in the Buffalo area.
The funding, which includes previous rounds of fundraising, along with $1.6 million raised in a new round, will allow UltraCell to begin making and selling its high performance cellulose building insulation later this year, said Jonathan Strimling, the company's president.
The factory is expected to employ 30 to 35 people once it is running at full capacity.
"We are thinking about potential sites and have narrowed the field, but can't give you a definite location yet," Strimling said.
The fundraising was led by the Clean Energy Venture Group and Investors' Circle's affiliated SustainVC fund. The funding included $1.6 million in new funding, along with $1 million in bridge financing.
"This financing represents a major milestone for the business," he said. "It positions us to move aggressively into the market in 2018."
UltraCell currently has three direct employees and is working with four independent contractors. Another independent contractor will begin working with the company during the next week, Strimling said.