Solexant lands $41.5 million Series C round

Enlarge Image

Solexant Corp. on Monday said it has secured a $41.5 million Series C round of financing, which it will use to commercialize its thin-film solar panel production, likely in Oregon.

The fresh investment came on the heels of completing an initial 2-megawatt production line at the company’s San Jose headquarters. The round was led by Olympus Capital Partners.

A Solexant spokeswoman said the investment will be used to continue research and development efforts and to build a commercial-scale factory.

So far, the most likely location for the factory is in Oregon.

Solexant is seeking a $25 million loan from the Oregon Department of Energy for a massive manufacturing plant in the Portland region which could eventually reach 400 megawatts of annual production capacity.

The plant as proposed would be built in stages, with the first reaching 100 megawatts of capacity and employing about 100 workers. When the company first applied for the loan in November it listed an address in Fairview in which it would occupy an initial 126,000-square-foot building.

A news release from the state said the company is considering sites near Gresham, which could include Fairview, and near Wilsonville.

Solexant is still weighing its options but hopes to have its site selection process concluded in coming months.

It’s unclear whether the company is looking at sites outside Oregon.

CEO Damoder Reddy was out of the country and unavailable for comment Monday morning.

The $25 million state loan would be the largest in the roughly 30-year history of the state Energy Loan Program. Solexant has also received pre-certification for a state Business Energy Tax Credit to cover half of a $37.5 million project cost.

Privately held Solexant is a four-year-old, venture-backed developer of what it refers to as “ultra-thin-film solar cells.” Its technology, developed at Lawrence Berkeley National Lab, increases solar cell efficiency while reducing manufacturing costs.

Technology research firm Gartner Inc. highlighted Solexant as a “cool” up-and-coming solar technology vendor to keep an eye on in 2010.

The company previously raised $22.5 million in two rounds. In addition to Olympus Capital, the latest round included two other new investors, DBL Investors and Birchmere Ventures, with support from existing investors Trident Capital, Firelake Capital, Medley Partners and X/Seed.

Rami Elkhatib, general partner of Olympus Capital Partners, and Cynthia Ringo, managing partner of DBL Investors, will join Solexant’s board of directors.