4 Arizona companies get $35 mil in funding

More people in Arizona may be able to harness the wind to lower their utility bills thanks to $6.5 million in venture-capital funding received during the past quarter by Flagstaff's Southwest Windpower.

Southwest Windpower was one of four Arizona businesses that received a total of $35.25 million in venture-capital funding during the second quarter of 2007, according to the Quarterly Venture Capital Report to be released today by Dow Jones VentureOne and Ernst & Young.

Susan Casebeer, Southwest's chief financial officer, said the capital will help the 20-year-old business manufacture and sell its first residential wind generator that can be connected to the power grid.

"This is our entry into the renewable-energy market," she said. When running, the company's high-tech windmill will cause the homeowner's electricity meter to run in reverse.

Other companies receiving venture funding were LifeLock, a Tempe business that offers identity-theft protection, and SDC Materials, also in Tempe, which makes specialty materials used to make catalysts and ceramic body armor.

CEO Max Biberger said the $6.5 million SDC received will enable it to build production equipment and hire additional employees.

A fourth company, RF Code, received more than $13 million to expand production of its asset-tracking devices. The company recently moved its headquarters from Mesa to Austin, Texas.

The $35.25 million in second-quarter Arizona funding was less than the $61.25 million received by five companies in first quarter and the $69.8 million six companies received in the second quarter of 2006.

RF Code's award initially was included in the first-quarter numbers but moved to the second when the closing was delayed.

Kevin McHolland, a partner with Ernst & Young in Phoenix, does not believe the lower second-quarter numbers are indicative of a trend.

"For the year, we're running pretty close to 2006," he said.

For the first six months, the venture-capital survey found 10 Arizona deals for a total of $96.46 million.

It was the third-best first half for Arizona since 2000.

4 Arizona companies get $35 mil in funding

2nd-quarter deals aid in production, growth