WRAL Tech Wire

RTI Spin-out Discloses Name, Raises $8 Million in First Venture Round

The latest high-tech spin-out company from RTI International has disclosed its names and a strong round of Series A venture capital fund raising.

Nextreme Thermal Solutions disclosed its name, investors and the amount invested on Tuesday.

The $8 million A round investors include RTI, SpaceVest, The Aurora Funds, and Harris & Harris Group.

RTI announced the spin out of the firm and employees working on the technology on Jan. 27. Media reports had indicated the company had raised $3.5 million.

Nextreme is focused on thermoelectric materials that it says can lead to better heat control in semiconductors. The funds will be used for more research, development and expansion of the material's use in power generation and optical communications products.

Jesko von Windheim, the former entrepreneur in residence at RTI, is Nextreme's CEO. He also was an executive in Cronos, a spinout from MCNC.

RTI developed the technology described as "thin-film superlattice" through work with the Department of Defense, the Office of Naval research and the Defense Advance Research projects Agency that dates back to 1993.

"In this company we have a strong base in the research and development of both RTI International and the U.S. Department of Defense, coupled with an established technology team and proven management," said Richard Harris, managing director of SpaceVest, in a statement. "With this foundation we believe the future for this commercialization effort is bright."

Rama Venkatasubramanian, director of RTI's Center for Thermoelectrics Research, led the research team involved in the project. He now is chief technology officer of Nextreme.

"Our technology provides a unique platform from which superior heat-pumping devices can be fabricated for applications where density, speed and efficiency requirements are a premium," Venkatasubramanian said.

In all, about 20 RTI employees will also work with the startup.

The so-called "superlattice" material that RTI developed is designed to eliminate hot spots generated by heat in microprocessors.

Valerie Browning, program manager of the Defense Science Office at DARPA, said the commercialization of this "breakthrough" technology "has the potential to address some of the most pressing thermal management needs of both the military and commercial industries."

RTI added that the research could enable development of devices that not only control heat but also turn heat variances into electricity.

Nextreme: www.nextremethermal.com

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